Tax Residency 

When considering your move to Spain, one thing you may want to consider are tax consequences and how the timing of your move can impact you financially. Depending on when you arrive in Spain and how many days you are physically in Spain each year, you may be subject to Spanish taxes. 

If you move to Spain under the current visa regimes you will in most cases, be considered a tax resident and required to stay in Spain for a minimum number of days each calendar year to qualify as a tax resident. There are exceptions to this rule so do your research and understand the specifics of each visa you may be considering. 

What is a Tax Resident? 

A tax resident is an individual or entity that is subject to taxation in a particular country or region based on their residence, domicile, or other connecting factors. Tax residency determines which country has the primary right to tax an individual’s or business’s income, assets, and activities. 

General Principles 

Typically, tax residency is determined by: 

• Physical presence: Spending a certain amount of time in a country (e.g., 183 days (about 6 months) in a calendar year). 
• Domicile: Having a permanent home or abode in a country. 
• Center of vital interests: Having economic, social, and personal ties to a country. 

Spain’s Specifics 

In Spain, tax residency is governed by the Spanish Personal Income Tax Law (Ley 35/2006). To be considered a tax resident in Spain, an individual must meet one of the following conditions: 

• Spend more than 183 days in Spain in a calendar year. 
• Have their primary home or center of vital interests in Spain. 
• Have their spouse or minor children residing in Spain. 

Implications 

Being a tax resident in Spain means: 

• You are subject to Spanish income tax on worldwide income. 
• You are entitled to deductions and allowances. 
• You may be eligible for benefits like healthcare and social security.