Discussion 1: Our transparent world

Do you like to spend your vacation in Spain? You rent a villa or stay in a hotel, you travel through the whole Spain or prefer to spend time on the beach. You simply enjoy life, but…for a short time and you fly back home when your short vacation is finished. You might come on Christmas or Easter time, but you always go back home.

If it is your case, than you are a Tourist and Non-Resident in Spain. If you are a non – European Union citizen and would like to come to Spain you need to get a tourist visa.

But if you want to come to Spain and live here, you have to get a residence permit that will allow you to stay in the country for 1 year with a further renewal. This permit will allow you to stay in the country in a legal way.

“Can I have a residence permit and still be a Non-Resident?”

-        Yes. If you stay in Spay less than 183 days.

Immigration Law vs Tax Law

“The hardest thing in the world to understand is the income tax”- Albert Einstein

If you do not have a Spanish Residency you can become a Tax Resident if any of the below occurs:

-        You stay in Spain for more than 183 days during the calendar year (including sporadic absences)

-        The main base of your activities or economic interests are in Spain

-        Your spouse and children habitually reside in Spain

If you meet one of the above criteria, you are a Fiscal Resident in Spain! And if it turns out that you become a Fiscal Resident in Spain, you must pay taxes on your WORLDWIDE INCOME in Spain.

“The difference between death and taxes is death doesn’t get worse every time Congress meets”- Will Rogers.

 “Can I become a Resident of both Spain and another country?”

-        Yes

“Can I be taxed twice on the same type of income?”

-        Yes

How to avoid it? To avoid double taxation most of the countries signed International Conventions that list some type of income and provide which country has the power to tax.  

-        In some cases, exclusive is given to the country to the taxpayer’s residence

-        In some cases, exclusive power is given to the country of origin of the income

-        In some cases, both countries can tax the same income, but with the obligation to arbitrate measures to avoid double taxation.

Follow us and you will learn:

Being a Fiscal Resident in Spain

What do you have to disclose

Do you receive pension- where it is taxed

Income from Immovable properties – where it is located and where taxes should be paid

Did you sell your house outside Spain – where taxes are paid

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