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V0239-21 10 February 2021 · SG de Fiscalidad Internacional Criterion in force
IRNR · residencia fiscal

UK residents' tax in Spain depends on income type

A UK resident asks how income from a Spanish company will be taxed. The DGT explains that fiscal treatment varies depending on whether the income is director's remuneration, dependent worker's salary or dividends.

The question raised

Taxation of income obtained in Spain

The DGT's ruling

If the income is derived from being a director, it may be taxed in both Spain and the United Kingdom. If it is salary from employment, it will be taxed in Spain if the work is performed in Spanish territory. In the case of dividends, Spain may tax them with a limit of 10% or 15% depending on the case, and the United Kingdom must avoid double taxation. To apply the limits of the Convention, it is necessary to provide a valid certificate of tax residence.

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