Form 210

TAXES FOR FOREIGNERS

Specialist Advisors in Non-Resident Income Tax Returns

In 2023, the Tax Agency (Agencia Tributaria) plans to intensify its monitoring of Spanish residents who evade their obligation to declare their income in Spain by filing Non-Resident Income Tax returns instead.

A very high-profile case related to this situation is Shakira’s dispute with the Tax Authorities. You might find yourself in a similar situation without even knowing it. At JDV Asesores, we are experts in Non-Resident Income Tax.

NON-RESIDENT INCOME TAX (IRNR)

This is a tax levied on income obtained within Spanish territory by individuals and entities that do not reside here.

The crux of the matter lies in the fact that you are taxed differently depending on whether you are a tax resident in Spain or if you are considered a non-resident foreigner:

If you are considered a tax resident in Spain: You will be taxed here on your worldwide income.
If you are considered a non-resident foreigner: You will only be taxed in Spain on income and returns obtained within Spanish territory.

WHEN IS A FOREIGNER CONSIDERED A TAX RESIDENT IN SPAIN?

The requirements set forth by Law for a foreigner to be obligated to pay taxes and file an income tax return in Spain are:

Staying in Spain for more than 183 days during the calendar year (the equivalent of 6 months). To determine this period of stay, sporadic absences are included in the calculation.
The primary economic activity is located directly or indirectly in Spain, unless proven otherwise.
The spouse (not legally separated) and minor children reside in Spain.
Diplomats, consular members, and Spanish civil servants abroad are subject to a special condition and are deemed to have the status of Spanish tax residents.

JDV team