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V0403-15 2 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residency determined by presence or centre of activities and double taxation treaties

A researcher asks about her tax residency in Spain and exemptions for working in France and the US. The tax authority replies that residency depends on presence or centre of economic activities, and international treaties can resolve residency conflicts.

The question raised

Issue raised: Tax residence of the taxpayer in the years 2014 and 2015.

The DGT's ruling

If the taxpayer maintains tax residence in Spain, they must be taxed on their worldwide income. The exemption under Article 7.p) of the Personal Income Tax Law (LIRPF) is not applicable because the work is not performed for a non-resident company or entity, but rather the employing entity is the Spanish university. In the event of a conflict of residence with the USA, the treaty allows a limited exemption of 8,000 dollars per year for the first twelve months, but the excess is taxed in Spain.

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