Income tax for non-residents in Spain

Determination of tax residence

A natural person is resident in Spain under any of the following circumstances:

• If they stay in Spanish territory for more than 183 days during a single calendar year (in the year of arrival or in the following year if the stay is less than 183 days in the year of arrival). Temporary stays arising from unpaid obligations entered into through cultural or humanitarian cooperation agreements are not taken into account. 
• If the main basis of their activities or economic interests is directly or indirectly rooted in Spain.
• If the spouse (not legally separated) and minors who depend on the individual habitually reside in Spain.
   

Please bear in mind the following:

Proof of tax residence

Tax residence is proved by means of a certificate issued by the competent tax authority of the country in question.

Tax residence in Spain is automatically proved if the period of residence in Spain has not been interrupted.

For tax residence in another country, the period of validity of the certificate is one year from the date of issue.

Therefore, a person may have a residence permit in a country, or residence there for administrative purposes, but not be considered a tax resident.

The form in which a natural person or entity is subject to taxation in Spain is based on whether they are residents in the country.

Taxpayer status is determined by the government (not by the taxpayer), so without the certificate issued by the government, a non-resident CANNOT be considered a taxpayer for the purpose of withholding tax.

To be considered tax residents in Spain, non-residents must present the model 145 and the documentation proving that you are considered a tax resident in Spain to the e-services portal form :

• A document from the Spanish Tax Agency certifying tax residence, with a current date.
• AEAT resolution, with the response to the processing of form 147

Employees who submit to the UPC a certificate of tax residence in Spain issued by the Spanish Tax Agency will be subject to the general legislation on income tax from the date of submission.

If you do not submit this certificate, the legislation on non-residents will apply, so the general rate of personal income tax will be 24% until 183 days have passed in the calendar year, unless you can prove that you are a resident of an EU country, Iceland or Norway, in which case the rate will be 19%.

Employees who have not resided in Spanish territory for 183 days in any one year but can prove that they expect to stay in Spain for over 183 days may ask the Spanish Tax Agency to apply the general income tax legislation by filling in the form “Model 147”.

These agreements allow non-resident natural persons to avoid double taxation in Spain and their country of residence. Interested parties must prove their non-resident status in Spain by providing the certificate issued by the tax authorities of their country of residence.

When these conditions have been met, the type of withholding tax will be indicated in the corresponding double taxation agreement.

Countries with which Spain has signed agreements to avoid double taxation:

EUROPEAN UNION: Germany, Austria, Belgium, Bulgaria, Czech Republic, Denmark, Slovak Republic, Slovenia, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, United Kingdom, Romania and Sweden.

OTHER EUROPEAN COUNTRIES: Croatia, Iceland, Macedonia, Norway, Russian Federation, Switzerland, Turkey, the former USSR (applicable to Ukraine, Belarus, Moldova, Georgia, Armenia, Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan), Serbia, Albania, Cyprus, Bosnia and Herzegovina, Andorra and Montenegro.

AMERICA: Argentina, Bolivia, Brazil, Canada, Chile, Cuba, Ecuador, United States, Mexico, Venezuela, Jamaica, Colombia, El Salvador, Trinidad and Tobago, Dominican Republic, Costa Rica, Panama, Barbados, Uruguay and Peru.

ASIA: Korea, China, United Arab Emirates, Philippines, India, Indonesia, Iran, Israel, Japan, Thailand, Vietnam, Malaysia, Saudi Arabia, Kuwait, Singapore, Pakistan, Bahrain, Qatar, Hong Kong, Oman and Syria.

AFRICA: Algeria, Egypt, Morocco, Tunisia, Senegal, South Africa, Cape Verde, Namibia and Nigeria.

OCEANIA: Australia and New Zealand.

• Royal Legislative Decree 5/2004, of 5 March, approving the recast text of the law on income tax of non-residents (Official Gazette of the Spanish Government of 12 March 2004).
• Order HAC/117/2003, of 31 January
• Order EHA/1371/2006, of 4 May