Spain considers you a tax resident if you spend more than 183 days in the country, regardless of travel restrictions by COVID19.

Spain considers you a tax resident if you spend more than 183 days in the country, regardless of travel restrictions by COVID19


Spain has announced that all individuals who spend more than 183 days in a given fiscal year will be treated as #residents of the country for tax purposes, even if their stay was #mandatory due to #covid-19 travel restrictions


We published an article on the subject last April 2020, explaining the legal and fiscal consequences of prolonged residence in a country, with the interpretations suggested by the OECD on the subject.

Place of effective management (POEM) and individuals residence status in COVID19 time

The countries applying the OECD Model should consider a kind of #Neutrality for the period when a person is in a place, not because of a decision, but because of travel, health and authority restrictions.

In these cases, the COVID-19 crisis should not create a “stable organization” (#PE) for them in those countries, since it is not #Habitual

We will see how the different jurisdictions will apply the guides in specific cases, considering that many countries have already defined to follow the path of interpretation proposed by the OECD

Concerns about the residence status of a company (place of effective management)


The issue is of absolute tax relevance from an individual point of view as a natural person, as it is and even more so for individuals on the administrative bodies of companies, in order to identify the corporate tax position in a country, in relation to both the substance of their structure and the tax residence of the members of the Board of Directors

Now in Spain and in all countries that have not given contrary provisions or that are silent, there will be a high risk of being considered resident for tax purposes for income, wealth and other taxes.

It must be considered that for the purposes of prolonged stay in a country, voluntary or not, the mere blocking of travel and flights in general, may not be considered a determining factor, as throughout Europe, even during the period of total closure, trips and flights of re-entry for citizens residing in their countries of residence have been activated.

In Spain, on the other hand, regardless of each condition, the intention was to formalize a position with an interpretation of the existing rules that does not allow any change to the time constraints required for residence regardless of the pandemic and the specific will of the person

For any need to learn more about your legal and tax position in different countries, both at the level of the #individual and for the implications at the #corporate level, please do not hesitate to contact us