The 2024 Income Tax Campaign began on April 2nd and ends on June 30th, 2025.
In today’s globalized environment, it is increasingly common to find people moving to Spain (impatriates) or people moving abroad (expatriates), generally for work reasons. It is also common to find people who, while tax residents in Spain, make investments abroad and receive income from other countries.
The first important aspect to review is determining tax residency. It must be verified whether the individual meets the requirements to be considered a tax resident in Spain or is considered a non-resident.
Tax residency is always established through domestic regulations, meaning that the domestic laws of each country establish the criteria for considering an individual a tax resident. Double Taxation Agreements only contain clauses to avoid a person’s dual tax residency, acting through tiebreaker rules. Specifically, a person is considered a tax resident in Spain if they have spent more than 183 days in a calendar year in Spanish territory, or if their center of vital or economic interests is located in Spain.
Regarding tax evasion obligations, remember that you must inform the AEAT (Spanish Tax Agency) of any change in domicile or status as a tax resident or non-resident.
If you are considered a tax resident in Spain, you must pay tax on your worldwide income. If any of the income earned abroad has been subject to tax, you may apply the deduction for international double taxation, provided it is done in accordance with a double taxation agreement or in accordance with the domestic legislation of the country or territory in question, and if certain requirements are met.
If you have moved abroad for work reasons and continue to be considered a tax resident in Spain, you may apply the exemption provided for in Article 7p of the Personal Income Tax Law (LIRPF) or the excess tax exemption regime for personal income tax, provided you meet the requirements established by law.
If, on the other hand, you are transferring your tax residence to Spain and meet certain requirements, you can consider paying taxes under the Special Regime for Impatriates (colloquially known as the “Beckham Law”), whereby, as a tax resident in Spain, the provisions of the Non-Resident Income Tax will apply to you for five fiscal years, providing you with a tax advantage starting from a certain salary level. This option must be requested within six months of registering with Social Security or from the date shown on the social security coverage certificate from your country of origin in the case of an international move. With the entry into force of Law 28/2022, of December 21, “Start-Ups Law,” some of the requirements have been reduced and the range of taxpayers eligible for this special regime has been expanded, including so-called “digital nomads” and professionals who move to Spain to pursue activities classified as entrepreneurial.
If, under the regulations, you are considered a non-resident taxpayer in Spain, you must pay tax on the income earned in Spain according to the provisions of the Non-Resident Income Tax Law. Check if you have tax obligations in Spain.
Ask us for advice to analyze your situation and determine whether any of these aspects may impact your census and/or tax obligations.
