Back to index
V1585-14 18 June 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · residencia fiscal

Indian researchers may be exempt from Spanish taxation under double taxation treaty

A university asks what documents non-resident Indian researchers must submit to avoid IRNR withholding on research projects. The DGT explains that exemption depends on whether the activity is training or research and on the funding source.

The question raised

Documentation to be presented by researchers from India (not tax residents in Spain) participating in the aforementioned projects to avoid the withholding tax on non-residents regarding the amounts paid by the applicants.

The DGT's ruling

The tax exemption will depend on whether the primary activity is training (Art. 21 of the Convention) or research in the general interest (Art. 22 of the Convention). If the purpose is training and the income originates from sources outside Spain, it could be exempt. To avoid withholding through the application of the Convention, it is necessary to present a certificate of residence issued by the tax authority of India that expressly indicates that the taxpayer is a resident within the meaning of the Convention, or the form provided for in its implementing orders.

Book your free first meeting