Tax residence in Spain is mainly determined by the amount of time a person spends in the country. To be considered tax resident in Spain, it is required to spend more than 183 days a year in the country, or to have the main core or base of one’s economic activities in Spain.
Tax residency can also apply to individuals who have the majority of their economic interests in Spain, such as having a partner or children residing in the country. Once a person is considered to be a tax resident in Spain, they are subject to taxation on their global income, i.e. on their income in Spain and abroad.
Based on the above, many disputes that may arise before the Tax Agency may be due to the tax residence of the taxpayer, as this will determine how they are taxed in Spain.
A recent binding consultation of the TEAC (Resolution of 18 December 2023) establishes that the Tax Administration has the burden of proof to demonstrate that the taxpayer is a tax resident in Spain when the taxpayer has provided a certificate of tax residence in a third country, as this is not incompatible with the tax resident status in Spain.
On the other hand, if the taxpayer does not provide a certificate of tax residence in another country, it will be the taxpayer himself who will have to prove his tax resident status in another country and, in addition, his non-resident status in Spanish territory through other means of proof considered appropriate for the case.
Do not hesitate to contact our MDG Team for professional support in any dispute that may be taking place in relation to your tax residence in Spain.
Jesús Raya Zamora.
