Doctrine by topic · DGT Observatory
How the DGT's position on this topic has evolved, and the rulings it rests on.
Current position
The competence to levy IRPF (Personal Income Tax) corresponds to the Provincial Council if the taxpayer has their habitual residence in the Basque Country. To determine said residence, the criteria of permanence (greatest number of days), the principal center of interests, and the last declared residence are applied successively. Residence is a matter of fact that must be proven; registration in the municipal register (empadronamiento) is not sufficient.
The DGT's position remains stable in the delimitation of competencies between the common territory and the foral territory. Consultations confirm that the application of the Economic Agreement regulations depends on habitual residence and compliance with specific requirements regarding volume of operations or territoriality. No changes in criterion are observed in the analyzed sequence.
Turning points
Specifies that to determine the applicable regulations in a merger, the volume of the absorbed companies is not considered, but only that of the absorbing entity.
Analysis based on 12 of 14 rulings with a stated position. Updated 26 September 2026.