How to obtain tax residence in Spain
Having tax residence in Spain means the possibility of benefiting from the Spanish tax system. People born in Spain acquire tax residency automatically, however, people without Spanish nationality must meet a series of requirements to obtain tax residency.
At Asesoría Orihuela we advise you throughout the whole process, so that you can obtain tax residency in Spain.
What is tax residence in Spain?
Tax residence in Spain refers to the status or condition in which a person or entity is considered a taxpayer under the Spanish tax system. In other words, a person or entity is considered tax resident in Spain if he or she has sufficient links or connections with the country, which implies that he or she is subject to the obligation to declare and pay taxes on his or her income and wealth to the Spanish tax authorities.
These links may include habitual residence in Spain, residence in Spain for more than 183 days per year or the location of the centre of economic interests in Spanish territory. Tax residence has important implications in terms of tax obligations and may vary depending on current legislation and international tax agreements.
Requirements for obtaining tax residence in Spain
In order to obtain tax residency in Spain it is important to comply with certain requirements set by the tax authorities. Tax residency determines how a person or entity’s income and wealth is taxed in Spain, and can have significant implications in terms of tax obligations.
- Habitual residence: The main requirement is to have a habitual residence in Spain, which means that you must live permanently in the country.
- Permanence in Spain: In general, anyone who has been in Spain for more than 183 days in a tax year is considered to be a tax resident. This is one of the most important criteria.
- Location of the main core of economic interests: In addition to residence, the location of the main core of economic interests is taken into account. This means that if your economic and financial activities are in Spain, you are more likely to be considered a tax resident.
- Dependants: If you have dependants residing in Spain, this may also influence your tax residency.
- Other ties and circumstances: In addition to the above criteria, the tax authorities may take into account other personal ties and circumstances, such as the location of significant property or investments in Spain.
- Double taxation agreements: If you are resident in another country with which Spain has a double taxation agreement, it is important to consider the provisions of that agreement, as they may affect your tax residence.
- Declaration of residence: In some cases, you may need to file a declaration of tax residence with the tax authorities to formalise your situation.
It is important to remember that tax laws and requirements may change over time, so it is always advisable to consult a specialised tax or legal advisor before making important decisions regarding tax residency in Spain. In addition, double taxation agreements between countries may influence how tax residency is determined in specific cases.
Advantages of obtaining tax residence in Spain
Obtaining tax residency in Spain entails several advantages that can benefit individuals and companies that choose to establish their tax residence in the country.
- Tax regime: Spain offers a competitive tax regime compared to other European countries. This includes a number of tax benefits, such as relatively moderate tax rates and special regimes for certain types of income, such as income from business and professional activities.
- Access to the European Market: Spain is part of the European Union (EU), which makes it easier to access the European market and conduct business throughout the EU. This is particularly relevant for companies wishing to operate in the European market.
- Double taxation treaties: Spain has signed double taxation agreements with numerous countries, which prevents individuals and companies from paying tax on the same income in two different jurisdictions.
- Residency benefits in special zones: Some regions of Spain, such as the Canary Islands and specific zones on the Spanish mainland, offer favourable tax regimes to attract investment and economic activities.
- Political and economic stability: Spain is known for its political and economic stability, which gives confidence to investors and residents.
- Quality of life: Spain offers a high quality of life, with a pleasant climate, a wide variety of tourist destinations and a rich culture.
- Real estate investments: For those interested in real estate investments, Spain offers interesting opportunities in real estate, both in the residential and commercial sectors.
- Access to Social Security: Tax residents in Spain have access to the social security system, which includes medical care and other social benefits.
- Easy travel: Spain has excellent air and land connections, which facilitates travel within Europe and to other parts of the world.
At Asesoría Orihuela Costa we offer you the advice you need to obtain your tax residency in Spain.
