Taxation for non residents
It is very important that a foreigner’s residency is properly determined: a tax resident in Spain has to pay taxes over his income worldwide, but a non-resident pay taxes over income within Spain only. Tax residence shall be proven.
Income obtained in Spain is taxed in a certain way and has its corresponding exemptions. The notion of permanent establishment is also essential in order to establish the taxation of certain income.
The method to file the tax returns can also be different according to the kind of income.
The double taxation treaties must also be checked in order to comply with the current legislation and to optimize tax planning.