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V0756-21 30 March 2021 · SG de Fiscalidad Internacional Criterion in force
IRNR · rentas inmobiliarias

Swiss residents taxed on Spanish property income under non-resident rules

A Swiss tax resident enquires whether the EU resident tax regime applies to their Spanish property income. The DGT responds that the Switzerland tax treaty and non-resident rules apply, as residency is a factor determining tax treatment.

The question raised

The taxpayer raises the possibility, based on the principle of non-discrimination of the Spanish-Swiss Convention, of applying the rules established for residents in a Member State of the EU or another EEA State distinct from the EU with effective exchange of information regarding the method of taxation of real estate income.

The DGT's ruling

Income from real estate in Spain for a resident in Switzerland is taxed in Spain pursuant to the TRLIRNR, as the requirements for economic activity are not met (full-time employee or hotel services). The principle of non-discrimination under the Convention does not mandate the same treatment for a resident as for a non-resident. Spanish regulations do not discriminate based on nationality, but rather apply different regimes according to tax residence.

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