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Territoriality: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2022

Current position

Non-residents are subject to tax under the real obligation only for assets and rights located in Spain. In this context, the deductibility of debts requires that they be considered located in, or must be fulfilled in, Spanish territory and must be supported by the appropriate evidentiary justification. Regarding IVA (Value Added Tax), the Canary Islands are considered a third territory excluded from the application of the Law of Value Added Tax.

The DGT's position remains constant in the application of the territoriality criterion for the real obligation, focusing taxation on the location of assets and the requirement that debts be located in Spain. No doctrinal changes are observed, but rather a reiteration of the application of territoriality to debts and clarification regarding the burden of proof.

Turning points

  1. V1244-17

    Introduces the necessity for the justification of debts located in Spain to comply with the evidentiary strength requirements demanded by Spanish Law.

Analysis based on 7 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V1481-18 30 May 2018

An AIE may qualify as a producer for film tax credits if specific requirements are met

SG de Impuestos sobre las Personas Jurídicas
agrupación de interés económicoproductor independientededucción por producciones cinematográficasimputación de basesrégimen especial de las aie LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 36.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 43
Affects CompanyExpat · Non-residentIndividual

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