Tax residence and residence permit in Spain.
After the release of the new law on entrepreneurs, international investors received a new incentive to invest in Spain – the opportunity to obtain a special “residence visa for investors”. Despite many advantages, one of the main doubts, and perhaps the main obstacle to keeping interest in obtaining a residence permit in Spain, is the opportunity to become a tax resident in Spain and the duty to pay taxes in that country on the basis of the aggregate income.
In fact, the question of where to pay taxes arises from many investors when choosing their residence. Therefore, it is very important to determine the requirements that are imposed on tax residents in Spain.
For this, first of all, it is necessary to distinguish between the visa and the residence permit of the tax resident.
On the one hand, visas and residence permits are documents that give the alien the right, subject to a number of requirements, to be or live, and in certain cases also work in the territory of Spain.
On the other hand, a tax residence is a status that some citizens receive in accordance with the requirements of tax legislation, and falling under such requirements, a foreign citizen has a duty to pay tax on all incomes received in Spain and in other countries.
In other words, a residence permit does not always entail the status of a tax resident and vice versa, a tax resident does not need to be a citizen who has a residence permit in Spain.
CRITERIA FOR DETERMINING THE TAX RESIDENCE.
A foreign citizen will be a tax resident in Spain if:
& # 8211; A citizen permanently resides in Spain (this is a tax residence) for more than 183 days during a calendar year. Sporadic absences of a citizen, possible during this period, will not be taken into account.
& # 8211; In Spain is the main center or base of activities or economic interests of a citizen, in direct or indirect form. The law presupposes that the center of the citizens’ vital interests is Spain, when the legal spouse and underage children who are on the taxpayer’s identification usually live in Spain.
As follows from the foregoing, the law does not take into account the residence permit that a foreign citizen can have. The fact of living in Spain more than 183 days a year, according to the law, is spent that the taxpayer is a tax resident and therefore must pay all taxes in Spain.
Moreover, even without living in Spain for 183 days a year, but having in this country the center of its vital interests, a foreign citizen will be treated as a tax resident.
Nevertheless, the residence or non-residence provision must be considered separately from the obligation to file tax returns. There are situations when a taxpayer, being a tax resident in Spain, is exempted from filing a tax de-lation if his annual income is lower than prescribed by law. And a non-resident, may be required to file a declaration (income tax for non-residents), having a property in Spain.
INTERACTION BETWEEN TYPES OF RESIDENCE TYPE AND TAX RESIDENCE:
Residence permit without the right to work.
In many cases, the residents of the residence permit, for example “without the right to work”, do not know about the time during which they can be outside the territory of Spain, so as not to lose the residence permit. In accordance with the Immigration Rules, the cancellation of the residence permit, among other grounds, occurs also because of the absence on the Spanish territory for more than 6 months during the year.
Indeed, the owners of a residence permit can live in Spain less time than necessary for recognition as a tax resident, but in this case there is a risk not to obtain a residence permit for the next term.
Residence permit for investors.
Recall that Law 14/2013 provides an opportunity to request a residence permit for investors, those foreign nationals who:
& # 8211; Invest in the amount of 2 million euros in government debt bonds or 1 million euros in shares or shares in Spanish companies.
& # 8211; Acquire real estate in the amount of 500 000 euros.
& # 8211; Start a business project of national interest.
One of the main innovations in the form of residence for investors, is the exclusion of the requirement of being in Spain. In other words, unlike other types of residence permits, this species does not require its owner to stay in Spain for a certain period of time in order to be able to extend the residence permit for a new period. Therefore, at the request of the investor, he can stay in Spain for less than 183 days a year and not be a tax resident in Spain.
Legal Department of Pyc Servis.
Retirees & # 8211; residents of Spain: regulation of pensions received abroad.
Spanish citizenship: residence in the country.
EU regime: a fine of up to 3,000 Euros in the event of a finding of a marriage with abuse of rights.
Conditions for obtaining a student visa.
Our company is staffed by professionals in various industries such as real estate, foreigners, commercial or personal assistance, who have teamed up with other Russians, to attend all the services that a Russian citizen may need in Spain.
Tax residence and residence permit in Spain.