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Sebastian & St James
Where are you resident for tax purposes?
We are often asked by our Spanish ex-pat clients what tax they should be paying in Spain. Below is a quick guide to whether you are tax resident in Spain, and then, if you are, what tax you should be paying.

15.10.2014 - Tax residency arises in Spain where:

  • An individual spends more than 183 days per year residing in Spain.
  • Spain is an individual’s main place of living (i.e. family home is in Spain and children attend school in Spain).
  • Spain is an individual’s base for their economic activities.

If you are resident in Spain for tax purposes, there are two distinct categories of tax residency in Spain which may apply to you, namely Non-resident income tax, and Individual income tax.


Non-Resident Income Tax (NRIT)

Expatriate employees, who take up positions of employment in Spain, becoming Spanish tax resident in the process, may elect to be taxed on their Spanish sourced income according to the NRIT regime.  You may only avail of the NRIT regime for a maximum of six tax years and must also comply with various conditions including the following:

  • Your move to Spain occurs as a consequence of an employment contract.
  • You have not been a resident in Spain in the 10 years prior to taking up the position of employment.
  • The work is actually performed in Spain.
  • The employment contract is carried out for a Spanish entity or a permanent establishment of a multi-national organisation.

Individual Income Tax (IIT)

The IIT regime will apply to all other individuals who are currently tax resident in Spain and do not benefit from the NRIT regime.

The Spanish tax year runs from 1 January to 31 December.

Sebastian & St James International Financial Advisors Limited: advice based on integrity, trust and experience.

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