Explanatory Notes on foreign residents
Countries with Double Taxation Avoidance Agreements with Spain.
Spain has bilateral treaties to avoid double taxation with numerous countries. The aim of these treaties is to prevent the same income from being taxed by two different States, thus favouring legal certainty, international trade and investment. Below is a list of countries with which Spain has signed treaties in force:
- Albania
- Germany
- Andorra
- Saudi Arabia
- Algeria
- Argentina
- Armenia
- Australia
- Austria
- Azerbaijan
- Barbados
- Belgium
- Belarus
- Bolivia
- Bosnia and Herzegovina
- Brazil
- Bulgaria
- Cape Verde
- Canada
- Qatar
- Chile
- China
- Cyprus
- Colombia
- South Korea
- Costa Rica
- Croatia
- Cuba
- Ecuador
- Egypt
- El Salvador
- United Arab Emirates
- Slovakia
- Slovenia
- United States
- Estonia
- Philippines
- Finland
- France
- Georgia
- Greece
- Hungary
- India
- Indonesia
- Iran
- Ireland
- Iceland
- Israel
- Italy
- Jamaica
- Japan
- Kazakhstan
- Kuwait
- Latvia
- Lithuania
- Luxembourg
- Malaysia
- Malta
- Morocco
- Mexico
- Moldova
- Nigeria
- Norway
- New Zealand
- Oman
- Netherlands
- Pakistan
- Panama
- Poland
- Portugal
- United Kingdom
- Czech Republic
- Dominican Republic
- Romania
- Russia
- Senegal
- Serbia
- Singapore
- South Africa
- Sweden
- Switzerland
- Thailand
- Tunisia
- Turkey
- Ukraine
- Uruguay
- Uzbekistan
- Venezuela
- Vietnam
Tax Legislation for Foreign Residents in Spain
1. Tax Residence
- A person is considered to be a resident for tax purposes in Spain if he/she fulfils at least one of the following conditions:
- Staying more than 183 days during the calendar year in Spanish territory.
- To have in Spain the main core or base of his or her activities or economic interests.
- That his or her spouse who is not legally separated and dependent minor children are habitually resident in Spain.
2. Personal Income Tax (IRPF)
- Tax residents in Spain are subject to IRPF, which is levied on the taxpayer's worldwide income.
- It includes income from employment, economic activities, capital gains and capital gains.
3. Non-Resident Income Tax (IRNR)
- Non-residents are taxed only on income obtained in Spain through the IRNR.
- Tax rates vary according to the type of income and the country of residence.
- Reference:
4. Other Relevant Taxes
- Wealth Tax (IP): Applies to residents on their worldwide wealth and to non-residents on assets located in Spain.
- Inheritance and Gift Tax (ISD): Taxes gratuitous transfers under regional regulations.
5. Double Taxation Avoidance Agreements
- Spain has signed agreements with many countries to avoid double taxation and prevent tax evasion.
- These agreements determine where to tax and how to avoid double taxation.
6. Special Tax Regime for Posted Workers (Beckham Law)
- Workers who relocate to Spain can opt to be taxed as non-residents for a limited period of time.
- Benefit: fixed rate on earned income obtained in Spain.
