Special non-residents regulation for the income tax: suitable profiles

Moving abroad and becoming a tax resident in that country, means categorizing as an income tax payer. In certain cases, this may be detrimental to the taxpayer, due to the progressive nature of the Personal Income Tax, in relation to rates of Non-Resident Income Tax, the latter being more steady. However, different alternatives for the taxpayer can be evaluated. The Personal Income Tax Law regulates this scenario.


In fact, we are referring to the special regime for taxation of non-residents for Income Tax. It is applicable to certain individuals, who would normally be subject to income tax rules. This regime consists of maintaining the condition as taxpayer for income tax. It will do so by paying the Non-Resident Income Tax, under appliance of respective rules.


To whom does this special regime of taxation of non-residents apply


It affects those taxpayers, who have acquired tax residence in Spain by relocation. It can be applicable during the tax period of change of residence, and during a subsequent period of five years. However, the following conditions must be accomplished:

  • The taxpayer has not been resident in Spain during the previous ten tax periods.

  • The relocation is either due to an employment contract (except for special employment relationships of professional sportsmen and women), or because the taxpayer has become a director of an entity that is not linked, according to the criteria of the Corporate Tax Law.

  • No income classified as achieved through a permanent establishment in Spain.

It is important to point out that the option of taking advantage of this special non-resident tax regime also implies that the taxpayer will be subject to Wealth Tax stipulated by Spanish Council obligations.


The following terms must be viewed, under the assumption that profile is granted for choosing this special regime. Execution of a detailed analysis and review to conclude whether conditions are of interest for tax purposes. Depending on the type and amount of income, there may be notorious differences between paying income tax according to the rules of income tax, and those of non-resident income tax.


At Carrillo Asesores we are delighted to assist you for resolving any doubts. Our Tax Advice Department is at your service, do not hesitate to contact us.




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