Tax for non-Spanish residents

If you are thinking about working in Spain as a foreigner, before doing it so, you should know the type of taxes that you would have to pay while working and living here. You would have to contribute to the Spanish taxes if you are a natural person with long-term residence in Spain. It’s understood that a natural person has a Spanish residence when the following circumstances take place:

  • 1.Your residence in Spain has been longer than 183 days in a natural year. The duration of the time of residence in Spain determines whether you have to pay taxes or not. Those people, who stay more than 183 days in a natural year, will be natural residents. However, if someone says that they are living in another country that is a tax heaven, they will have to prove that they have been living in that country for 183 days in a natural year. However, those who stay in Spain in a temporary term dealing for free with cultural obligations of the country, they would be excluded from this payment.
  • 2.If the basis of your economic activities or interests are directly or indirectly in Spain.
  • 3.It will also be a reason for assuming that someone is a Spanish resident, apart from the previous points, when they usually live in Spain with their partner and their kids don’t have the legal age.
  • 4.Natural people with Spanish nationality who prove their new residence in a tax heaven country, they will contribute to the Personal Income Tax, (IRPF in Spanish) in the taxable period when they decide the change of residence as well as the next four taxable terms.

A legal entity
like societies will be considered Spanish when they follow the following points: fully constituted under the Spanish law and the registered office is located in Spain as well as their address’ headquarters.

There is also an optional taxation program for non-residents whose economic activity is settled in Spain but don’t want to be involved with the From January 1st of 2004, natural people who come to work to Spain and ask for their tax residence here, they can opt for contributing to the PIT (Spanish IRPF) or Income Taxation for non-residents for the next five following terms.

Those non-residents who are property or royalty owners, they will be eligible for a special tax payment only if they haven’t been Spanish residents for the last 10 years. Not only that, but also that their main reason for their new residence in Spain is due to a work contract, that the work takes place entirely in Spain or that the entity or company is based in Spain.

Workers for other companies who aren’t contributing to the Personal Income Tax (IRPF) but want to acquire that condition when they come to Spanish territory, they can contact with the Tax Administration to solve this enquiry. In order to be illegible for this taxation, the worker must be living at least 183 days in a natural year from the moment of arrival.