Tax - if refused residency

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16 May 2021 5:07 PM by watcher1 Star rating in spain. 6 posts Send private message

if i am refused residency in spain do i still have to pay tax

 





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16 May 2021 8:20 PM by Kavanagh Star rating in Oil Drum Lane Newcas.... 1311 posts Send private message

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It would depend on why you were refused residency and your financial interests and activities in Spain. Do you intend to make multiple residency applications with different passports?



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17 May 2021 8:51 PM by windtalker Star rating. 1949 posts Send private message

I really don't understand what the original poster is enquiring about ..why would a none resident pay incomeTaxes in Spain..if they own a Spanish property ..they would be liable for none resident Tax only on the property... providing they haven't had any sort of incom / earnings and so forth.

 

 


 


 


 


This message was last edited by windtalker on 17/05/2021.



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18 May 2021 8:19 AM by lobin Star rating. 256 posts Send private message

As it is often the case, the OP is confusing administrative residency and tax residency.  Generally both concepts go together.  If you have a resident authorization you are deemed to live in Spain and, as such, you are taxed as a resident.

However the definition of someone that is taxed as a resident (tax residency) is someone who spends in Spain more than 183 days in a calendar year.  This is further detailed in Tax Treaties that include tie breakers in case of someone that meets the definition to be taxed as a resident in both countries, that of nationality and that of residence.  I won't go into those here in order to keep matters simple, but a tax specialist should be consulted in those cases.

If a foreign person that does not have an administrative authorization to live in Spain does, however,  spend in Spain more than 183 days in a calendar year, then he will be taxed in Spain as a resident for that year, unless he can prove he is taxed as a resident in his country of nationality.  The fact that he was not authorized to stay in Spain for that long is irrelevant for tax purposes.

I hope this helps to clarify the difference between administrative residency, tax residency and factual residency.





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