Spain

Quick Facts

• Tax residency threshold: More than 183 days in Spanish territory during the calendar year (1 January to 31 December)
• Alternative triggers: Center of economic interests in Spain; habitual residence of spouse and/or minor children in Spain (creates legal presumption)
• What counts as "day": Any presence in Spain during a calendar day counts (no minimum hours or overnight requirement) — arrivals, departures, and temporary absences count unless you prove residency elsewhere
• Consequence: Tax residents pay tax on worldwide income under Spanish personal income tax (IRPF); non-residents taxed only on Spanish-source income
• Common visas: Non-Lucrative Visa, Digital Nomad/Remote Work Visa, Golden Visa — holding a visa does not prevent tax residency

Residency Rules Explained

• Primary (183-day) test: Spending more than 183 days in Spain during a calendar year qualifies you as a Spanish tax resident. Temporary absences are included unless you can prove tax residence in another country
• Secondary tests/presumptions:
• - Your center (core) of economic interests is in Spain (e.g., main business, investments, or professional activities)
• - Family presumption: If your spouse (not legally separated) and minor children habitually reside in Spain, Spanish authorities presume you are resident unless you provide evidence otherwise
• When residency begins: Once you cross 183 days or establish economic/family ties, you may be treated as resident for that whole calendar year under Spanish law (Law 35/2006)

Visa vs Tax Residency

Key Dates

• Tax year: Calendar year (1 January – 31 December)
• Tax filing deadline: Generally by 30 June (for prior year income)
• 183-day clock: Measured across the calendar year; partial days, arrivals, and departures all count as full days
• Day-count rule: Even if you spent part of a day outside Spain and part inside, it counts as a day in Spain (standard 1-day counting)

Common Pitfalls

• Equating visa status with tax status
• Miscounting days (ignoring arrivals, departures, short trips)
• Failing to rebut presumption of residency when spouse/minor children live in Spain
• Ignoring economic ties (e.g., investment or business center location)
• Not filing Modelo 720 — Spain requires foreign asset reporting with severe penalties for non-compliance
• Not understanding "Beckham Law" eligibility or application deadlines

Before You Reach 183 Days

• Track all entry and exit dates carefully with DayVA
• If your spouse and children are in Spain, prepare evidence of your tax residence elsewhere
• Avoid establishing your main business or investment activities in Spain if maintaining non-resident status
• Consider the "Beckham Law" regime if relocating for work (must apply within 6 months of arrival)
• Obtain a NIE (tax identification number) early if residency is likely
• Review whether your presence creates permanent establishment risk for your employer

Offshore & Expat Considerations

• "Beckham Law" (Impatriate regime): Allows eligible foreign workers relocating to Spain to pay tax only on Spanish-source income (not worldwide) at flat rates for up to 6 years. Eligibility requires not being Spanish tax resident in the prior 10 years, among other conditions. Must apply within 6 months of starting work in Spain.
• Foreign income/assets: As tax resident, all foreign income (dividends, interest, capital gains) must be declared; relief via double taxation treaties or foreign tax credits may apply
• Modelo 720 foreign asset reporting: Spanish residents must report overseas assets (bank accounts, securities, real estate) above €50,000 thresholds. Penalties for non-compliance or late filing are severe (can exceed asset value).
• Wealth tax: Varies by autonomous region; residents may owe wealth tax on worldwide assets above thresholds (typically €700,000+)
• Double taxation & tie-breakers: If another country also deems you resident, the double taxation agreement's tie-breaker rules (permanent home, center of vital interests, habitual abode, nationality) will apply
• Remote work risk: Working remotely from Spain for 183+ days may trigger tax residency and potentially create permanent establishment issues for your foreign employer under tax treaty rules