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Changes to the Spanish Residency Law for Tax Purposes

According to a recently released ruling, the Spanish Supreme Court changed the traditional requirements for physical presence and intention of the resident for personal income tax purposes. Our team of lawyers in Spain discusses these changes and can help you in all tax residency related matters.

The new criteria for determining tax residency for individuals

According to a ruling issued by the Spanish Supreme Court at the end of November 2017 and recently released and published, the criteria for determining the tax residency of an individual in Spain will no longer be the one implemented until now by the Spanish Tax Office. According to the changes, the time effectively spent in Spain will be the sole criteria for establishing tax residency and the taxation of an individual.
The criteria for the actual days spent in Spain, which is 183 days, was being used up until the implementation of the new changes, however, the Tax Office was also taking into consideration other factors. For example, the sporadic stays in other countries and the intention or will to reside abroad. The recent changes eliminate all and any subjective component that might have affected the calculation of the taxes for individuals according to residency. 
Our attorneys in Spain can help you with additional information if you are unsure of how the tax residency rules apply in your case. We can also provide legal assistance to foreign investors doing business in Spain.

Personal taxation in Spain

The rates for personal taxation in Spain are progressive ones, from 19% to 48%. The maximum rate varies according to the Spanish region in which the individual has his/her place of residence. The taxable income includes income from salaries, business or professional income as well as passive income such as dividends.
Contact our law firm in Spain for complete details about the tax laws for companies and individuals. Our attorneys can help you with a large range of legal services, suited to your exact needs.


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