Spain’s 183-day rule is a key aspect of its tax residency laws. It determines whether an individual is considered a tax resident in Spain for a particular tax year. Here’s how it works:
1. Basic Rule:
An individual is considered a tax resident in Spain if they spend 183 days or more in Spain during a calendar year (January 1 to December 31), regardless of whether those days are consecutive.
2. Worldwide Income Taxation:
If you are a tax resident in Spain, you are subject to Spanish tax laws on your worldwide income, meaning income from both Spanish and foreign sources is taxable in Spain.
3. Exceptions and Details:
• Physical Presence: Any part of a day spent in Spain counts as a day of presence.
• Family Connection: Even if you spend fewer than 183 days in Spain, you might still be considered a tax resident if your spouse and/or dependent children reside there.
• Economic Interests: You may also be considered a tax resident if Spain is the base for your primary economic activities or interests, even if you don’t meet the 183-day requirement.
4. Double Taxation Treaties:
If you’re also considered a tax resident in another country, double taxation treaties between Spain and that country may provide rules to resolve conflicts and prevent double taxation.
5. Non-Resident Status:
If you spend fewer than 183 days in Spain and have no significant family or economic ties there, you are generally considered a non-resident and are taxed only on income sourced within Spain.
To determine tax residency under Spain’s 183-day rule, the Spanish tax authorities may request various types of documentation to verify your time in the country and your connections. Below is an overview of the common documents required or recommended to prove your residency status:
1. Evidence of Time Spent in Spain
You may need to provide proof of the number of days spent in Spain during a calendar year. This can include:
• Passport Stamps: Showing entry and exit dates.
• Flight Tickets or Travel Itineraries: For trips in and out of Spain.
• Hotel or Accommodation Bookings: To support your presence in the country.
• Utility Bills: For your Spanish residence, such as electricity, water, or internet bills.
2. Family Connection
If your tax residency status is linked to your family’s location, you may need:
• Marriage Certificate: If your spouse lives in Spain.
• Children’s School Records: Proof that your dependent children attend school in Spain.
• Proof of Co-habitation: Rental or property contracts showing where your family resides.
3. Economic and Professional Ties
The Spanish tax authorities may examine your economic interests in Spain:
• Employment Contracts or Payslips: If employed in Spain.
• Proof of Business Activities: If self-employed, including invoices, contracts, or registration with Spanish authorities (e.g., Autónomo status).
• Bank Statements: Showing financial transactions in Spain.
• Property Ownership Documents: If you own property in Spain.
• Tax Returns from Other Countries: To establish where your primary economic interests lie.
4. Proof of Non-Residency (if applicable)
If claiming non-residency, you may need to provide documents from your home country, such as:
• Certificate of Tax Residency: Issued by your home country’s tax authority to confirm residency outside Spain.
• Rental or Utility Bills: For your primary residence outside Spain.
• Bank Statements or Credit Card Records: Indicating frequent activity outside Spain.
5. Double Taxation Treaty Certificates
If a double taxation treaty applies, you might need:
• Form 296: Or equivalent, proving non-resident income status.
• A Certificate of Fiscal Residence: From your home country, to ensure you are taxed under treaty rules.
Tips for Compliance
• Keep a Log: Maintain a detailed travel log documenting your movements in and out of Spain.
• Be Organized: Store all relevant documents for at least four years, as Spanish authorities can audit prior tax years.
• Professional Advice: Engage a tax advisor to navigate Spain’s residency rules and avoid mistakes.
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