Can you prove you are not a tax resident in Spain?
If you are living in Spain but aren’t paying Spanish taxes you will need to prove you are not a tax resident. The Spanish Tax Office has launched a campaign to investigate foreign nationals who have been in Spain for more than six months but aren’t paying Spanish taxes.
If you are investigated by the Spanish Tax Office, it is up to you to prove you are not a tax resident. You will need to get a lot of documents and paperwork together as evidence.
In the latest campaign, inspectors are visiting people’s houses to verify if the person is a legal resident for tax purposes. They will ask questions which the person will have to sign plus they will give them a letter with further questions. Anyone who gets the letter needs to answer the questions and submit proof to back up their answers.
Who is a tax resident in Spain?
If you are living in Spain for more than 183 days in a calendar year, you become a resident for tax purposes here. These days do not have to be consecutive, so you could be here for 90 days from January 1, back to your home country for 90 days, return to Spain for 95 days and you will be regarded as a tax resident.
Note that the Spanish tax year runs from January 1 to December 31, unlike in the UK where it runs from April 6 to April 5.
What does the tax inspection involve?
The inspector has a form with a long list of questions. When this is filled in, the person under investigation has to sign it to declare the details are true. He or she will also be given a letter asking for further documentation which has to be returned within 10 days.
The form to be filled in and signed in situ asks about:
- Your reason for being in Spain
- How long you have been in Spain
- Your NIE (or TIE)
- If you are on the padron
- Your Spanish phone or mobile number
- Ownership of vehicles in Spain
- Ownership of moorings and boats in Spain
- If you have anyone contracted to clean or look after your home
- Contracts for electricity, natural gas, home security firms, etc
- Private health care in Spain
- Subscriptions for magazines or satellite TV, home deliveries, etc
- Supermarket club cards (El Corte Inglés, Mercadona, Carrefour, etc)
- A gestor to take care of your tax declarations
- Children’s schools, if applicable
The letter to be returned to the Tax Office within 10 days covers these questions as well as asking for your main source of income.
If these requirements aren’t met or the letter isn’t returned, a file will be initiated to determine if any tax infringements have been incurred.
If you want to check you are a legal resident in Spain or start the process to get residency in Spain, please contact Impley International Tax & Law in Jávea now.