Back to index
V0364-20 17 February 2020 · SG de Tributos Criterion in force
IRPF · domicilio fiscal

Tax residence for individuals may be the place where their economic activity is managed

A taxpayer has enquired whether they can maintain their tax residence at the location where they carry out their economic activity after changing their habitual residence. The DGT explains that while habitual residence is the general rule, an exception exists for those primarily engaged in economic activities.

The question raised

Tax residence of natural persons when carrying out an economic activity at a domicile different from their residence.

The DGT's ruling

For natural persons, tax residence is their habitual residence. However, if they primarily carry out economic activities, the Administration may consider as tax residence the place where the administrative management and the direction of the activities are centralized. It is considered that they primarily carry out economic activities when more than half of the general tax base of the Personal Income Tax (IRPF) of the previous year derives from net income from economic activities, or if this percentage is met in any of the three previous years.

Book your free first meeting