Question
I’m a retiree trying to avoid becoming a tax resident of Spain my first year of arrival. Can somebody tell me when the 183 days begins for tax residency in Spain? Is it upon entry into the country under your visa or when you get your residence permit?
Answers
These are the answers of Spaunguru’s Facebook group members:
“When you enter.”
“When you enter. But it’s 183 days in a calendar year. Moving in the last half of the year is the simplest way to do it but you could also come earlier in the year and do some travel outside of Schengen while a resident that first year to keep you under 183 days.”
“The tax year starts on 1st January. Each tax year, you are either a tax resident or you aren’t — no partial years. All days when you are present in Spain are added together — even days when you’re here as a tourist. And if you’re in Spain for 183 days or more in 2023, you’ll be a tax resident here for the entire period from 1/1/2023 to 31/12/2023.”
“Upon entry. Also, many types of pensions are not taxed. SS is taxed, but remember, there is a tax treaty between the two countries. Once you have filed taxes in one country, you get a full credit in the second country. No double taxation. Most Americans have SS benefits directly deposited into their Spanish bank accounts. No fees whatsoever.”
In conclusion, according to Spaunguru’s Facebook group members, the determination of tax residency in Spain starts from the day you enter the country, not from the issuance of your residence permit. It’s essential to understand that Spain counts the days for tax residency based on a calendar year. If you’re present in Spain for 183 days or more within a single calendar year, you’ll be considered a tax resident for that entire year. Therefore, to avoid becoming a tax resident in your first year, strategize your entry date, possibly entering in the latter half of the year, or consider traveling outside the Schengen area while being a resident to ensure you stay below the 183-day threshold. Furthermore, remember there’s a tax treaty between Spain and the U.S. that prevents double taxation, with many retirees receiving their SS benefits directly into Spanish bank accounts without incurring fees.
