Private client—Spain—Q&A guide

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Private client—Spain—Q&A guide
  • 1. How does an individual become taxable in your jurisdiction?
  • 2. What, if any, taxes apply to an individual’s income?
  • 3. What, if any, taxes apply to an individual’s capital gains?
  • 4. What, if any, taxes apply if an individual makes lifetime gifts?
  • 5. What, if any, taxes apply to an individual’s transfers on death and to his or her estate following death?
  • 6. What, if any, taxes apply to an individual’s real property?
  • 7. What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?
  • 8. What, if any, other taxes may be particularly relevant to an individual?
  • 9. What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?
  • More...

Private client—Spain—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to private client in Spain published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: Cases & Lacambra Abogados SLP—Ernesto Lacambra ; Cristina Villanova

1. How does an individual become taxable in your jurisdiction?

Individuals resident in Spain are liable for income tax in Spain on their worldwide income, whether derived in Spain or abroad. Individuals who are non-resident in Spain are liable to tax on their Spanish source income.

Part-year resident do not exist under Spanish Law. An individual is either resident or non-resident and is taxed as such for the entire tax year.

Residents

The Spanish Personal Income Tax Act sets forth two rules and a presumption to consider an individual as a tax resident in Spain. An individual is considered to be resident in Spain for tax purposes when: (1) the individual is physically present in Spain for a period of more than 183 days in a tax year, (2) the centre of the individual's activities or economic interests are located in Spain, or (3) the individual's spouse or minor children are tax residents in Spain.

The permanence test applies when the individual remains more than 183 days per calendar year in Spain. Occasional absences shall be considered to calculate the period of residence, except when individuals prove they

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