Back to index
V0923-18 10 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Taxation of income depends on taxpayer's fiscal residency in Spain or France

A taxpayer planning to reside in France for nine months a year asks how pensions, employment income, rental income and the imputation of a property in Spain will be taxed. The DGT explains that fiscal treatment differs entirely depending on whether the taxpayer is deemed a fiscal resident in Spain (IRPF on worldwide income) or not (IRNR on Spanish-source income).

The question raised

Upon changing their residence to France, they inquire about the taxation of the following income: Spanish Social Security retirement pension, employment income to be earned in Spain for three months per year, rental income from an apartment owned by them in Spain, and income as a co-owner of a property in Spain that is not used.

The DGT's ruling

If they are a tax resident in Spain, they will be taxed on their worldwide income under the Personal Income Tax (IRPF), including pensions, employment income, rentals, and imputed real estate income. If they are a non-resident, they will be taxed under the Non-Resident Income Tax (IRNR) on Spanish-source income: Social Security pensions may be exempt according to the Convention, employment income will be taxed in Spain if exercised here, and real estate will be subject to taxation in Spain. The Convention with France will serve to resolve residency conflicts and avoid double taxation.

Book your free first meeting