Many taxpayers believe that spending fewer than 183 days per year in Spain and obtaining a tax residence certificate from another country will automatically grant them NON-RESIDENT status. The Spanish Central Economic-Administrative Court (TEAC) has shown that it is not that simple.
In its decision RG 10390/2022, dated 19 February 2026, the TEAC examines the case of a foreign taxpayer who, after becoming widowed from an art dealer with whom she had lived in Spain for decades, declared in 2015 that she had moved her tax residence to another EU country. She held a tax residence certificate issued by that country. She spent fewer than 183 days per year in Spain, specifically 178 days in 2016 and 177 in 2017, just below the threshold. Even so, the TEAC considers her a tax resident in Spain and confirms a tax debt of more than €645,000 plus a penalty exceeding €414,000.
The reason is that in Spain, tax residence does not depend only on the number of days spent in the country. Article 9.1.b) of the Personal Income Tax Law establishes a second independent criterion. A person is also considered a tax resident if Spain is the main centre or base of their economic activities or interests, directly or indirectly. This condition was clearly met.
With the proceeds from the sale of the art collection inherited from her husband, the taxpayer built a clear centre of economic interests in Spain. She owned eight properties, two companies related to tourist rentals and hospitality, granted personal loans to those companies amounting to €1,050,000, held bank accounts with balances exceeding €350,000, owned five vehicles, was registered under the self-employed regime (RETA), and had seven insurance policies. Her advisors, managers, veterinary clinics, and mechanic were all based in Spain.
Her main argument was that she owned a valuable art collection abroad, valued at more than €6 million, which exceeded the value of her assets in Spain. The TEAC rejects this argument. Applying the doctrine of the Spanish Supreme Court, judgment of 8 July 2024, it concludes that determining the main centre of economic interests requires an overall assessment. This includes not only the value of assets but also their location, management, and the income they generate.
A qualitative assessment is therefore essential. Properties in Spain linked to economic activities cannot be relocated, generate recurring income, and are managed locally. These factors carry significantly more weight than an art collection. The situation is reinforced by the fact that the collection had not been declared for inheritance tax purposes, was not insured, its location was uncertain, and its valuation was based on a private report. The appraiser himself stated that the valuations were matters of opinion.
Since the taxpayer provided a tax residence certificate from another country under a Double Tax Treaty, the TEAC also examined the dual residence conflict. It was resolved in favour of Spain because her centre of vital interests was located there. She spent nearly half the year in Spain, 175 days according to her own admission. In the alleged country of residence, she spent less than 20 percent of her time. Her personal connections, including doctor, friends, veterinarian, and advisors, were all in Spain.
The TEAC also confirms the penalty for a serious infringement. Remaining just under the 183-day threshold, investing all funds obtained from the liquidation of her art assets in Spain, and failing to disclose several properties to the Spanish Tax Authorities does not constitute a reasonable interpretation of the law. The Court concludes that this reflects a consciously pursued tax saving strategy.
What should you consider if you are planning to change your tax residence or have already done so?
The number of days is only one criterion. If your key assets, sources of income, companies, or economic activity remain in Spain, the Tax Authorities may still consider you a tax resident, regardless of where you have formally established your residence or the certificate you hold. A poorly planned or insufficiently documented change of tax residence can have significant financial consequences.
At Feliu N&I, we advise our clients on all aspects related to tax residence planning and substantiation, both in relocation processes and tax audit procedures. If you have any doubts about your situation, we can help you assess it before the Authorities do.
