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V2271-17 8 September 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Foreign property sale profits taxed in Spain if taxpayer is fiscal resident

A taxpayer with dual nationality asks about their tax situation after returning to Spain from Argentina. The DGT clarifies how profits from property sales in Argentina are taxed and the obligations under IRPF, Patrimonio, and Model 720.

The question raised

Question raised: Tax situation of the taxpayer regarding the income and wealth tax returns for 2016, the fiscal year in which they indicate they are a tax resident in Argentina.

The DGT's ruling

Tax residence is determined by staying for more than 183 days or the center of economic interests. If resident in Spain, the individual will be taxed on their worldwide income, including interest from Argentina, which may be subject to taxation in both countries subject to the limits set by the Convention. As a resident, they will be liable for Wealth Tax and required to file the informative return on assets abroad if legal thresholds are exceeded.

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