Spanish admin residency = Spanish tax residency

Raymundo Larraín Nesbitt, March, 1. 2022

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By Raymundo Larraín Nesbitt
Lawyer - abogado
1^st of March 2022

Increasingly, more and more people are realizing that applying for Spanish residency has in fact tax consequences. I keep seeing this mistake being made over and over again.

A common misunderstanding on applying for Spanish residency is the matter of tax residency.

I have witnessed how several companies, and so-called ‘advisors’, purposely missell residency permits in Spain without properly disclosing to applicants the tax implications of their decision.

I’ve written again another short article on this matter as a gentle reminder.

The golden rule: Spanish residency permit = Spanish tax residency

Although – technically – it is true that admin residency and tax residency are two separate legal concepts, the fact is they eventually go hand in hand in most cases.

As a general rule, the following golden rule applies:

Spanish residency permit = Spanish tax residency

Without going into detail on the whys and why not's, the reason is that as a staple requirement all visas in Spain require on renewals you categorically prove you have lived in Spain long term; defined as spending over 183 days within a calendar year in Spanish territory.

The tax implication of this is that it automatically triggers tax residency in Spain.

Example: Mr. Smith applies and attains a Non-Lucrative Visa in May 2021 to avoid the pesky 90/180-day rule. In the following year (2022), unbeknownst to him, he must file personal income tax in Spain (IRPF) on the previous year because he has now become a Spanish tax resident (depending on the case, he may also need to file a 720).

If Mr. Smith challenges the tax residency status, on grounds that he did not spend over 183 days in Spain during 2021, he will be stripped of his residency permit.

In other words, they go hand in hand. You cannot have one without the other or your visa renewal will be turned down, period.

Is there any exception to this general rule?

Alas, yes.

It’s a special type of residency permit called Golden Visa (Investor Visa).

A GV allows its permit holder to bypass the 90/180-day rule. It also allows its holders' unfettered access to Spain. They may enter and leave as they please (even circumventing Covid restrictions).

Attaining a Golden visa, unlike every other visa in Spain, does not automatically make you tax resident in Spain and the reason being is because renewals are not tied to proving you live in Spain long term (which triggers tax residency), but rather that you have maintained the investment over time in Spain.

This nuance is extremely important and goes on to explain why Golden Visas are so special and why they are so sought after by affluent applicants as they do not preclude your tax residency on application.

As a recap, a Golden Visa allows you:

To legally bypass the 90/180-day rule
Unfettered access to Spain
Do not automatically make you tax resident in Spain (unlike every other visa in Spain)

LNA has a 100% track record attaining Spanish residency

Larraín Nesbitt Lawyers, small on fees, big on service.

At Larrain Nesbitt Abogados, we have assisted hundreds of EU and non-EU nationals to successfully attain a Spanish residency permit.

Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most. Your family’s success is only one call away: (+34) 952 19 22 88.

Residency services available from LNA:

Related visa articles

Investor Guide to Spain’s Golden Visa Law – 8th November 2013
Spanish Golden Visa (New York Times – China edition) – 8^th July 2015
Golden Visa Spain – 8th June 2017
Golden Visa Spain – 8/8/18
Golden Visa Spain: 10 frequently asked questions – 8th October 2019
Relocating to Spain? We offer a wide range of Immigration & Residency services – 8th January 2020
Golden Visa for British investors – 21^st January 2021
Spanish Golden Visa for British, it’s retroactive! – 8^th February 2021
EU-family regrouping (Marriage Visa) – 8^th March 2021
Lucrative visa (self-employed) – 8^th April 2021
Non-lucrative visas explained – 8^th May 2021
How to spend over 90 days in Spain – Residency visa overview – 21^st May 2021
I want a Spanish visa, but I don’t want to pay any taxes in Spain – 1st August 2021
Is age a thing on requesting a Spanish residency permit? – 11th November 2021
Spanish residency permits and tax residency – 21^st January 2022
Spanish admin residency = Spanish tax residency – 1^st March 2022

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