Residency is based on fact and not choice. An individual becomes resident in Spain for tax purposes if:
- He spends more than 183 days in Spain during one calendar year. Residency then commences on the morning of the 184th day.
- He arrives in Spain with the intention of residing there indefinitely. Residency then commences from the date of arrival.
- His centre of vital interests is Spain (i.e. the establishment of a business).
- Unless proven otherwise, an individual is presumed to be a Spanish resident if his spouse lives in Spain and he is not legally separated, even though he may spend less than 183 days a year in Spain.
In the case of tax residence automatically being ascribed despite not having been in Spain for a period greater than 183 days it is possible to rebut the inference especially if protection is being sought under UK or Irish tax agreements or treaties.
As a resident of Spain an individual will be liable for income, capital gains and inheritance tax on his worldwide assets. Non-residents are only normally subject to Spanish taxes on Spanish generated income or Spanish based assets.
|Income tax||Worldwide||Spanish income only|
|Capital gains tax||Worldwide||Spanish assets only|
|Inheritance tax||Worldwide||Spanish property only|
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