Tax Advisor Tax Resident in Spain

Non-Resident Taxation

In our firm we have a great knowledge and experience in all the casuistry that affects expatriates, both in displacements from Spain to foreign countries, as well as from foreign countries to Spain.

When considering the possibility of changing residence, it is crucial to have a thorough understanding of the obligations that arise from it. These obligations include, on one hand, the tax costs associated with becoming a resident in the new country and, on the other hand, the level of information and communication obligations required in the new state of residence.

All of this is also affected by the non-resident status in the state being left and the taxation that arises from such a condition. The previous tax analysis is carried out from the perspective of an individual who was a resident in Spain and then relocates to another country, as well as from the perspective of a foreign individual who becomes a resident in Spain.

We understand how difficult it can be to move to another country, which is why our aim is to ensure adequate compliance with legal and tax obligations in Spain, streamlining and simplifying compliance as much as possible to facilitate adaptation to the new residence for our clients. To this end, we provide the following services.

Analysis of the advisability of obtaining tax residency in Spain: description of the tax cost plus the formal obligations arising from this status.

Analysis of the advisability of maintaining non-tax residency in Spain: description of the tax cost plus formal obligations arising from this status.

Completion and submission of tax residency registration in Spain.

Completion and submission of tax returns on the Income Tax for Non-Residents, IRNR. Form 210 and Form 211.

Completion and submission of the declaration of Foreign Investments by residents in Spain, and investments by non-residents in Spain, using the following forms: D-1A, D-1B, D-2A, D-2B, D-4, D-5A, D-5B, D-6, D-7A, D-7B, D-8, DP-1, DP-2, DP-3 i DP-4.

Study and application for the visa for investor and entrepreneur residence.

Specific advice on tax obligations to be fulfilled in Spanish territory.

Frequently Asked Questions:

When am I considered a tax resident in Spain?

Tax residency in Spain is acquired if some of these circumstances are met:

• You have resided in Spanish territory for more than 183 days during a calendar year, without taking into account sporadic absences.
• The main nucleus or base of your activities or economic interests is located in Spain, directly or indirectly.

In addition, there is a presumption that when your non-legally separated spouse and your dependent minor children are habitually resident in Spain.

Do I have to register at the City Hall?

It is advisable to register with the City Hall once you arrive in Spain in order to prove your residence.

When do I have to file the Form 720?

Form 720 is filed during the month of March, and consists of reporting the assets and rights held abroad by residents in Spain, provided that these exceed €50,000 as a whole, according to different types of asset categories (real estate, investments, bank accounts, virtual currencies). In addition, if you have previously filed this form, you will be obliged to file it again if the value in any of these categories increases by more than €20,000 with respect to the last return filed.

When do I have to file Form 210?

If you do not reside in Spain but have real estate in this country, you must file form 210.

For income derived from the lease of real estate, there is the option of filing a quarterly form 210 or grouping the income and filing an annual form 210. If you are a tax resident in an EU country, the tax rate will be 19% and you will be able to deduct the expenses derived from the lease. If you are resident in a country outside the EU, the tax rate will be 24% and you will not be able to deduct the expenses.

In the case that the property is at your disposal, form 210 will be filed annually, as in the previous point, the tax rate will be 24% or 19% depending on whether the tax residence is in an EU country or not.

Likewise, if you receive other types of income in Spain, you must also file Form 210 (if a Double Taxation Avoidance Agreement or a multilateral rule does not establish that the income received should not be taxed in Spain or if the payer of the income has not made the corresponding withholding).

When do I have to file my personal income tax return?

If you are a resident in Spain you are obliged to file a tax return during the months of May to June of the following year, for all your worldwide income during the previous calendar year. There are some minimum exempt amounts that allow not to declare but only in very specific cases.

If I acquire residency in Spain, do I have to pay here for the worldwide income obtained?

Yes, any resident in Spain must pay tax on worldwide income obtained. However, there is a special regime (Beckham Law) under which you are taxed as if you were a non-resident (fixed tax rate and only the income taxed in Spain is subject to taxation, except for income from employment or economic activities, which is taxed on your worldwide income).

If I acquire residency in Spain, can I pay taxes as a non-resident through a special regime?

Yes, any individual who arrives in Spain if he/she meets certain requirements (worker or company director under certain conditions) can be taxed only on the income obtained in Spain and at the general rate for non-residents (24% up to 600,000 Euros of taxable income from employment). This special regime is known as the Beckham Law.

When do I have to submit the D6?

During the month of January of each year to declare securities located abroad.

If I go to work abroad, do I have to continue filing personal income tax?

It depends on whether the move abroad causes the individual to cease being a resident in Spain or not. If not, you must submit personal income tax but certain reductions and exempt amounts may apply due to performing work abroad.

Can I deduct taxes paid abroad in Spain?

It will depend on the provisions of the Double Taxation Agreement between the two countries, depending on the type of income obtained.
If it can be deducted, the amount to be deducted will be the lesser of the following amounts:

• Tax effectively paid abroad.
• Tax that should have been paid in Spain on such income here.

If I work temporarily abroad, do I have to pay taxes in Spain?

Yes, if the situation is temporary you will continue to be a resident in Spain.