{"id":10168,"date":"2017-06-06T08:35:28","date_gmt":"2017-06-06T06:35:28","guid":{"rendered":"https:\/\/etl-ilia.es\/?p=10168"},"modified":"2021-06-14T20:54:32","modified_gmt":"2021-06-14T18:54:32","slug":"form-216-non-resident-income-tax","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/tax-advice-blog\/form-216-non-resident-income-tax\/","title":{"rendered":"Form 216: Non-Resident Income Tax"},"content":{"rendered":"

Non-resident income tax (Form 216) <\/strong>is regulated by Law 41\/1998, 9 December. This law was published to regulate the taxation of non-residents uniformly due to the international relationships developing at that time requiring legislation of this type.<\/p>\n

In the Spanish tax system, the following criteria have long been used to determine whether or not a person is subject to paying tax<\/strong>:<\/p>\n

    \n
  • Personal obligation<\/strong>. A person residing in Spain is taxed for the income they have in Spain and other countries.<\/li>\n
  • Real obligation<\/strong>. A person who has assets in Spain but does not reside in the country also needs to pay taxes.<\/li>\n<\/ul>\n

    Non-resident income tax: Definition and features<\/h2>\n

    Non-resident income tax is a direct tax on income (in cash or in-kind) obtained in Spain by non-resident individuals or entities<\/strong>. In other words, this is where the real obligation described above comes into effect.<\/p>\n

    However, it\u2019s important first to find out if any double taxation treaties<\/strong> apply to your situation in such cases. If there aren\u2019t any, then the Non-Resident Income Tax Law should be applied. You can click on this link to find out more about the double taxation treaties Spain has signed.<\/p>\n

    Who needs to pay this tax?<\/h2>\n

    According to Article 5 of the Non-Resident Income Tax Law, the following are liable for this tax:<\/p>\n

      \n
    • Individuals or entities, not resident in Spanish territory who obtain income there, unless they pay personal income tax (IRPF).<\/li>\n
    • Foreign individuals who reside in Spain due to their employment in diplomatic or consular offices.<\/li>\n
    • Entities in a system of income allocation have been incorporated outside of Spain but have a presence in Spanish territory.<\/li>\n<\/ul>\n

      Income obtained in Spain for non-resident income tax purposes<\/h2>\n

      Income obtained in Spain is understood to be the following (as per Article 13 of the Non-Resident Income Tax Law):<\/p>\n

        \n
      • Income from economic activities or operations conducted through the use of a permanent establishment located in Spanish territory.<\/strong><\/li>\n
      • Income from economic activities or operations conducted without a permanent establishment in Spanish territory, in the following cases:\n
          \n
        • When the economic activities are carried out in Spanish territory.<\/li>\n
        • When it concerns the rendering of services used within Spanish territory.<\/li>\n
        • When stemming from the personal performance of artists and athletes in Spanish territory.<\/li>\n<\/ul>\n<\/li>\n
        • Earnings from work<\/strong>:\n
            \n
          • When they are the result of an activity carried out in Spanish territory.<\/li>\n
          • When concerning public payments made by the Spanish Administration.<\/li>\n
          • When concerning remunerations paid by individuals who engage in economic activities, in the performance of such activities.<\/li>\n<\/ul>\n<\/li>\n
          • Pensions and similar benefits derived from employment in Spain.<\/li>\n
          • Payments from management directors or members of management boards, boards of directors or bodies<\/strong> representing an entity resident in Spain.<\/li>\n
          • Income from movable capital (dividends, royalties) and the income derived from movable assets in Spain.<\/li>\n<\/ul>\n

            Submission deadline<\/h2>\n

            The deadlines for Form 216 submissions are as follows:<\/p>\n

              \n
            • For quarterly declarations<\/strong>: The form must be submitted during the first 20 calendar days of April, July, October and January.<\/li>\n
            • For monthly returns<\/strong> applicable to large companies: The form must be submitted during the first 20 calendar days of the month following the relevant monthly declaration period.<\/li>\n<\/ul>\n

              To access the tax forms and, specifically, Form 216 for Non-Resident Income Tax<\/strong>, you can log on to the Tax Agency’s Electronic Office (Sede electr\u00f3nica de la Agencia Tributaria<\/em>), click on paperwork, taxes and fees (tr\u00e1mites, impuestos y tasas<\/em>), and then Non-Resident Income Tax and Form 216 (Impuesto sobre la Renta de no Residentes y Modelo 216<\/em>).<\/p>\n<\/div><\/div><\/div><\/div><\/div>