Generally speaking, every EU country set up its own tax regulations, and distinguish between being or not being tax resident in its official territory.

Every country tax office generally maintains international double taxation agreements fully up-to-dated in order to guarantee a way forward to resolve possible conflicts of taxation to one particular individual or corporation with economic interests in two different territories during the same tax period.

Depending on the qualification of residence to each individual, there are huge and important differences of taxation in Spain. Earnings from property rentals, business tax compliances, or capital gains produced and coming from the sale of any sort of assets located in Spain are taxed very differently, and in different times in the year depending if living or not in Spain as tax resident or non-resident.

From a Spanish tax prospective, every individual has the obligation to be considered Spanish resident if living in Spain for a period of time longer than 183 days within the natural year. In case that your time spent in Spain is less than these amounts of days in the year, you will therefore be considered non-resident tax complied, and your tax obligations will be completely different than if you lived permanently in Spain.

However, EU tax laws prevent other different type of parameters to consider an individual resident in one particular country even so the time spent in its territory is less than apprx. six months. For instance, and upon the event that most of your financial or business earnings came from being produced in Spanish territories, you will also have the obligation to be considered tax resident in Spain.

In case that none of these above-mentioned factors were clear (time spent in Spain and most important source of earnings located in Spain), individuals will have the obligation to be considered tax residents upon the event that their close family members lived permanently (i.e. spouse, children under legal age, etc).

We must call your attention in the importance of paying your taxes every year as you do or used to do in your previous country of living.

So that, it is very essential that:

  1. You pay what corresponds to be paid accordingly to your Spanish Residence or Non-Residence considerations every year, and;
  2. You do not pay taxes as Residents in two different countries at the same time and in the same year, unless the international agreements establish different means to avoid it.

IN SUMMARY it is important that you keep your tax liabilities up-dated at all times.

Our Firm will assist you through the process to get settled as tax resident or non-resident in Spain depending the time period that you stayed in Spanish territories within the natural year. Our Firm will also assist you all along this process, and ensure that you do not get into any breach of obligations due to your living and tax individual circumstances.