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New guides on the latest Spanish tax and immigration developments.
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A labour inspector who relocated to Madrid in 2019 inquired whether the Melilla income tax deduction could be applied to salary supplements from previous years that were judicially recognised. The Directorate General for Taxes (DGT) ruled that the deduction cannot be applied because the individual was not a resident of Melilla during the imputation period, although they may apply the reduction for income with a generation period exceeding two years.
This ruling clarifies that habitual residence in Melilla is a mandatory requirement for accessing specific tax deductions, even when salary supplements are awarded through judicial processes for prior periods.
The tax team reviews your specific situation.
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