Spain - tax residency advice.

Fiduciary Wealth Team

Did you know you are deemed to be tax resident in Spain if any of the following apply:

1) You spend more than 183 days in Spain in one calendar year. These days do not have to be consecutive. This rule also covers people living on a boat within 12 nautical miles of Spanish land.

2) Spain is the centre of your economic activities.

3) If your spouse and/or your dependant minor children live here regardless of how many days you spend in the country.

Of course you also need to consider the residency position in the country where you have moved from. In the UK residency rules are currently vague but will be clarified next year with the introduction of a statutory residency test.

If you are tax resident in Spain, you are liable for income, capital gains and wealth taxes on your worldwide assets and subject to Spanish succession tax on any gifts or inheritances you receive. This is in addition to other incidental tax liabilities such as IVA (VAT) and local taxes.

The important issue is of course to arrange your financial affairs so that you minimise the tax that you pay in the country where you are resident. After all there is no point in having tax efficient savings plans back in the UK when you are tax resident in Spain and similarly there is little use in gearing your retirement planning arrangements to UK rules when Spanish tax will apply.

To discover how best to mitigate your tax liability and how to arrange your investments and retirement plans to match your residency status call +350 200 50982 or email