The importance of tax residency
Tax residency is a key concept for any Spaniard living abroad. Knowing the criteria established by the Spanish Tax Authorities is essential to avoid unpleasant surprises and legal complications. If you are living abroad, here we explain what you need to know.
What determines your tax residence?
According to the Tax Agency regulations, a Spaniard is considered a tax resident if he spends more than 183 days a year in Spain. This calculation includes days of absence, unless you can prove that your main residence is in another country.
Furthermore, if your core economic activities are located in Spain, this may mean that you are considered a resident, even if you spend less than 183 days in the territory.
Teleworking and its implications
With the increase in teleworking, it is essential that workers operating for foreign companies and temporarily residing in Spain understand the tax implications. Even if you do not reach the 183-day mark, if you work from Spain for more than 90 days, the Spanish Tax Authorities may consider you a tax resident.
The role of the company
Your foreign company must be aware of your tax situation. It is advisable to communicate any relevant circumstances to ensure compliance with tax regulations.
Risks of not complying with the Treasury
Ignoring tax obligations can result in severe penalties. Fines for tax violations can be significant, with penalties that can reach up to 150% of the amount evaded in cases of fraud.
Tips to avoid problems
To avoid surprises with the Treasury, here are some useful tips:
– Control your days in Spain: Keep a record of the days you spend in the country to avoid exceeding the 183-day limit.
– Document your residence abroad: Keep evidence that proves your residence outside of Spain, such as rental contracts or certificates from local authorities.
– Inform your company: Inform your company of your tax situation to ensure that the corresponding obligations are being met.
– Consult with a tax advisor: It is prudent to seek the help of an international tax expert to advise you on your tax responsibilities.
Conclusion
Spaniards living abroad should be aware of their tax responsibilities to avoid complications with the Spanish tax authorities. Staying informed and acting prudently is the best way to ensure a smooth international experience.
