18 Feb
work from Spain tax implications 2021

Working from Spain, why not?

Working from Spain is steadily growing: more and more people all over the world are doing it. However, living in Spain can entail the payment of taxes in this country and the most important thing in this regard is to know where you have tax residence.

In this article, Adrián Garcia, Tax and Accounting Specialist in SincroGO explain you the main issues you should know.

Spain is one of the most visited countries in the world; this is possible for several reasons, including:

– Good weather that allows you to do a multitude of outdoor activities and enjoy its high quality beaches.
– Long life expectancy thanks, among other things, to the health care system or to its healthy gastronomy.
– Cultural aspect: historical monuments, nightlife, museums…

But Spain is not only a tourist destination; it is also a good place to do business and it is possible to work from Spain (even if it is for employers or clients from other countries) like:
– Employee
– Freelance
– Companies

Besides Spain has an exceptionally good high speed broadband networks and 5g coverage spread over much of the territory.

For these reasons, the number of people from different countries (United Kingdom, Germany, France …) who decide for instance to extend their stays in Spain beyond their holidays, is growing.

  • Payment of taxes

But living in Spain can entail the payment of taxes in this country and the most important thing in this regard is to know where you have tax residence.

If the double taxation agreement with each country doesn’t say the opposite, an individual is resident in Spanish territory when any one of the following circumstances apply:

– They have stayed longer than 183 days in Spanish territory over the calendar year.
– They situate the main base or center of their activities or economic activities, directly or indirectly, in Spain.
– They have dependent not legally separated spouse and/or underage children who are usually resident in Spain.
Key tax forms

Key tax forms

The main tax forms that a resident in Spain must know are:
Form 100. Personal Income Tax. Annual tax return.
Form 714. Wealth Tax. Tax return and income document.
Form 720. Information Return. Information return on assets and rights held abroad.

By: Adrián García

Asesor Fiscal y Contable

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