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V1200-24 28 May 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residency and income taxation depend on presence, centre of vital interests and effective management base

A Spanish and British national seeks advice on their tax residency after moving to Spain, the status of their UK company and the taxation of their income. The DGT explains that tax residency is determined by presence or centre of vital interests, and the taxation of salaries and dividends is governed by the double taxation treaty.

The question raised

1.- Tax residence of the taxpayer in the 2022 tax period.

The DGT's ruling

Tax residence is determined by staying for more than 183 days or by the core of economic activities. In the event of a conflict of residence between Spain and the United Kingdom, the Convention is applied to determine the center of vital interests or permanent home. Employment income is generally taxed in the country of residence, unless the employment is exercised in the other State. Dividends may be taxed in the source country subject to limits established by the Convention.

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