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Are you aware of the obligation to declare worldwide assets and income by Spanish residents? Who is considered Spanish resident? (2)

Following with the same matter I discussed last month on the obligation to declare world wide assets by Spanish residents and as I mentioned on last month’s article, this newsletter is going to discuss who is considered a tax resident in Spain. The article is based on a presentation prepared by Mr. Francisco Velazquez Cueto from the Spanish Tax Office.


The matter of the residency in fundamental because the Income Tax Regulations establish that taxpayers have to pay in his country of residence for the total world wide income independently of the international agreements of double taxation that may reduce or eliminate that taxation. What it is clear is that when a taxpayer is considered resident a in a country, his taxes are regulated by the legislation of the residency country (here I refer to the article of last month on the obligation to declare world wide assets and income by Spanish residents).

In accordance with the Spanish Law 35/2006, individuals are deemed to be tax residents in Spain if they meet any of the following conditions:

a) They spend more than 183 days per calendar year in Spain. Occasional absences shall be taken into account to calculate the period of residence, except when said individuals prove they have their tax residence in another country. In the case of countries or territories classified as tax havens, the Spanish tax authorities may request proof of residence in the tax haven for 183 days per calendar year.

b) Their main or central place of business is directly or indirectly located in Spain.

Unless there is evidence to the contrary, an individual shall be deemed to be a resident of Spain if, in accordance with the aforementioned criteria, his or her legally non-separated spouse and dependent minor children have their principal residence in Spain.

* Since each particular case is different, it is fully recommended that you check your own numbers with your lawyer or tax advisor.


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