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V3630-15 19 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residence determined by duration of stay or centre of interests; income from international organisations may be exempt

A Spanish consultancy working for an international organisation abroad has requested clarification on its tax obligations in Spain. The Directorate General for Taxes (DGT) has ruled that tax residence is determined by either physical presence (exceeding 183 days) or the centre of economic interests. Furthermore, income may be exempt if the individual is considered part of the organisation's professional staff.

The question raised

Question posed: Whether they are considered a taxpayer for Personal Income Tax and, as such a taxpayer for IRPF, must file a tax return for this tax in Spain.

The DGT's ruling

Tax residence is determined by presence for more than 183 days in Spanish territory or by the main center of activities or economic interests being located in Spain. If one is a tax resident, they are taxed on worldwide income. Income from international organizations may be exempt if the constitutive agreement so establishes for the professional staff. The classification of income as employment income or business income depends on whether there is self-directed organization of production factors.

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