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V1134-16 21 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Fiscal residency depends on centre of interests; passive income taxed in Spain

A consultant receiving passive income and to be temporarily employed by a Spanish company in the UK asks about fiscal residency and taxation of their pension. The DGT explains how to determine residency and clarifies that passive income is only taxable in Spain if the consultant is a Spanish national.

The question raised

Question raised: Tax residence of the taxpayer.

The DGT's ruling

Tax residence is determined by staying in Spain for more than 183 days or by the center of economic interests, unless residence in another country is proven. If the individual is a resident in the United Kingdom, the passive class pension is only taxed in Spain according to the Convention. For the exemption regarding work performed abroad, the recipient must be a non-resident entity or a permanent establishment abroad, and in the case of related companies, the service must provide an advantage or benefit to the non-resident entity.

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