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V2731-14 13 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residency of displaced workers depends on presence in Spain or Convention application

The DGT clarifies that tax residency is determined by presence or centre of economic interests, and taxation will depend on whether workers remain Spanish residents or become non-residents.

The question raised

Tax residence of workers: whether the described displacements entail a change in their tax residence.

The DGT's ruling

Tax residence is determined by staying in Spain for more than 183 days or by the core of economic activities or interests being located in the country. If the worker is a resident in Spain, they are taxed on their worldwide income, and may also be taxed in the United Arab Emirates according to the Convention. If they cease to be a resident, they are only taxed in Spain on income from Spanish sources, which would not arise if the work is performed abroad.

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