Residency in Spain

A lot if foreign nationals moving to Spain to live and work are often confused as to what their residence status is especially regarding tax. This is even more the case when they are EU citizens that do not require a work and residence permit. It should be borne in mind however that your residence status is not based on whether or not you have gone through the formal motions for registering as such. Taxation treaties signed by countries will provide more specific criteria for establishing what an individual's residence status is but most of them will tend to follow the criteria outlined below. In general, a person is considered to be a resident in Spanish territory when any of the following circumstances occur:

1) When he/she stays longer than 183 days a year in Spanish territory. In the calculation of this 183 day period, temporary absences in other countries are not deducted unless they in turn imply effective residency in that country (i.e. a stay or series of stays of more than 183 days).

2) When the main base of his or her business or professional activities or, in general, his or her economic interests is in Spain. A person who is on a long-term contract in Spain would therefore be considered a Spanish resident.

3) When his/her spouse (from whom he/she is not legally separated) and children under the age of 18 are habitually resident in Spain. This last case allows the individual in question to present proof against this assumption if they are not in agreement.

Establishing residency is of the utmost importance when it comes to dealing with the issues of taxation and social security. There are many cases of individuals who, technically speaking, would be considered Spanish residents who still continue to make their tax and social security contributions in their home countries. This is an anomalous situation which should be rectified in order to avoid possible problems with the Spanish authorities.

The author provides services to both foreign companies and individuals in Spain helping them get the appropriate legal, business and accounting assistance they require. To find out more click on the link - Lawyers Spain; Accountants Spain; Immigration Spain.

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