With the geographic mobility that currently exists, many people receive work or other income abroad. These earnings must be declared when paying the Personal Income Tax (IRPF)<\/a>.<\/p>\n In this article, we will tell you how earnings from work abroad are declared<\/strong> and those derived from accounts or deposits in financial entities located in another country when the tax residence is in Spain<\/strong>.<\/p>\n<\/div><\/div><\/div><\/div><\/div> The first thing that has to be determined to know how the <\/span>earnings obtained abroad<\/span><\/strong> are taxed is where the tax residence of the natural person who is going to declare personal income tax is located. It is understood that a natural person is a resident in Spain when any of the following circumstances occurs:<\/span><\/p>\n As a consequence of the foregoing, any natural person who does not meet the requirements seen above is considered a non-resident in Spain.<\/span><\/p>\n<\/div> To know what should be included in personal income tax, we must consider article 2 of Law 35\/2006, of November 28, on Personal Income Tax, which establishes the following:<\/span><\/p>\n The object of this Tax is the taxpayer’s income, understood as the totality of their income, capital gains and losses and the imputations of income that are established by law, regardless of the place where they were produced and whatever the residence of the payer.<\/em><\/p>\n<\/blockquote>\n<\/div> As a consequence of what is established in article 2 of the personal income tax law, the following concepts must be included in the declaration of this tax:<\/span><\/p>\n International double taxation<\/strong> occurs when taxes are paid twice for the same taxable event in two different places. This case occurs when, for example, a person is considered a tax resident in two countries. To avoid international double taxation, it is usual for countries to sign bilateral agreements in which bonuses and deductions are established. For example, it may be the case that a person makes the income statement in one country and deducts what he has paid for the same concept in another country.<\/span><\/p>\n The international double taxation agreements<\/strong> are intended to promote investments abroad, provide legal certainty and reduce the tax burden on investors. It is also important to note that country tax administrations cross information often to avoid tax fraud.<\/span><\/p>\n As a consequence of all the above, it is essential that, if you obtain capital gains abroad derived from work, bank accounts or economic activities, for example, you have the help of a tax advisor expert in international taxation<\/strong> to know where you have to declare and where you are considered to have your tax residence for income tax purposes.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/i><\/i><\/span>FAQ about Article 7p<\/span><\/a><\/h4><\/div>
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When is a natural person considered to be a tax resident in Spain?<\/span><\/h2>\n
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What must be declared in the Personal Income Tax?<\/span><\/h2>\n
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Earnings to be included in personal income tax<\/span><\/h2>\n
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What happens when the earnings have already been taxed in another country?<\/span><\/h2>\n