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V3379-20 19 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Taxation in Spain of a public servant's income and rental income from Spanish property when residing in Portugal

A public servant who moves his residence to Portugal seeks to understand how his Spanish public sector salary and rental income from Spanish property will be taxed. The DGT examines the situation based on fiscal residence and the double taxation treaty with Portugal.

The question raised

Taxation of employment income derived from the Spanish Administration and from the leases of real estate owned by them located in Spain, which shall be intended for the tenants' housing.

The DGT's ruling

If the consultant is a tax resident in Portugal, their salaries from the Spanish Administration are taxed in Spain under the Non-Resident Income Tax (IRNR) pursuant to the Convention. Rents from real estate in Spain are also taxed in Spain under the IRNR. If they were a resident in Spain, they would be taxed on their worldwide income under the Personal Income Tax (IRPF). In the event of double taxation, the relief corresponds to the State of residence.

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