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V1643-14 27 June 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Tax residency determined by centre of vital interests or habitual residence in case of conflict

A taxpayer resident in Spain temporarily moves to the US for work with their family. Tax authorities assess whether they must continue to tax worldwide income in Spain or if the residency conflict with the US is resolved otherwise.

The DGT's ruling

Tax residence is determined by presence in Spain (more than 183 days), the center of economic interests, or the residence of the family. If a conflict of residence with the USA exists, the Convention is applied: first, the center of vital interests (personal and economic relations) is sought. If it cannot be determined, it is resolved by the State where the person habitually resides. In this case, if the center of vital interests is uncertain, the competent authorities shall decide based on the frequency of stay.

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