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V2985-20 5 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residency in Spain determines worldwide income taxation and double taxation relief

A person resident in Spain working for a Swiss company with monthly trips asks where they should be taxed. The DGT explains that if they are a fiscal resident in Spain, they will be taxed on their worldwide income and may apply international double taxation relief.

The question raised

Question posed: Where income tax must be paid.

The DGT's ruling

Tax residence is determined by staying in Spain for more than 183 days or by having the core of economic activities within Spanish territory. If residence exists in both countries, the Double Taxation Convention is applied to resolve the conflict. If the individual is a resident in Spain, they shall be taxed on their worldwide income, although salaries for work performed in Switzerland may be taxed there, in which case Spain must eliminate double taxation through the deduction provided for in the Personal Income Tax Law (LIRPF) and the Convention.

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