Denmark
Tax residents in Spain with income from Denmark
(The content of this document is for informational purposes only and has been prepared for educational purposes only. For more information, you can consult the Personal Income Tax Law directly.
I.- Tax residence
A natural person is resident in Spanish territory when any of the following circumstances occur:
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They have stayed longer than 183 days in Spanish territory over the calendar year.
To determine this period of stay, sporadic absences will be taken into account unless the taxpayer proves his tax residence in another country (through a tax residence certificate issued by the tax authorities of that other country). In the case of countries or territories labelled as tax havens, the Tax Administration can demand proof of stay in that tax haven over a period of 183 days within the calendar year.
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They situate the main base or centre of their activities or economic activities, directly or indirectly, in Spain.
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They have dependent not legally separated spouse and/or underage children who are usually resident in Spain. This latter situation accepts evidence to the contrary.
II.- Personal Income Tax
If a natural person, in accordance with the above, turns out to be tax resident in Spain , he/she will be a taxpayer for the Personal Income Tax (IRPF) and must pay taxes in Spain on his/her worldwide income , that is, he/she must declare in Spain the income he/she obtains anywhere in the world, without prejudice to the provisions of the Agreement to avoid international double taxation signed between Spain and the country of origin of the income.
Considering that since 2009, there is no agreement to avoid international double taxation between Spain and Denmark, all income originating in Denmark obtained by a tax resident in Spain is taxed in Spain. If such income is taxed in Denmark, the taxpayer may apply the deduction for international double taxation provided for in article 80 of Law 35/2006, of November 28, on Personal Income Tax.
The personal income tax period is the calendar year. A person will be a resident or non-resident throughout the calendar year since a change of residence does not imply an interruption of the tax period.
The income tax return of individuals who are tax residents in Spain is submitted in the months of April, May and June of the year following the year of accrual. The Personal Income Tax regulations set limits and conditions that determine the obligation to file a tax return, which must be consulted each year.
Example : Taxpayer, tax resident in Spain, whose only income in 2019 is a pension from Denmark, caused by having worked in a company in that country. If the pension exceeds the amount of 14,000 euros per year, taking into account the limits and conditions of the obligation to declare for the 2019 financial year, he would be obliged to file a personal income tax return for 2019, since the payer of the Danish pension is not obliged to make withholdings on account of Spanish personal income tax.
III.- Obligation to report assets abroad
Residents in Spain must inform the Spanish tax authorities about three different categories of assets and rights located abroad:
- accounts in financial institutions located abroad
- Securities, rights, insurance and income deposited, managed or obtained abroad
- Real estate and rights to real estate located abroad
This obligation must be fulfilled, using Form 720, between January 1 and March 31 of the year following the year to which the information to be supplied refers.
There will be no obligation to report on each of the categories of assets when the value of the set of assets corresponding to each category does not exceed 50,000 euros. Once the information declaration has been submitted for one or more of the categories of assets and rights, the submission of the declaration in subsequent years will be mandatory when the value has experienced an increase of more than 20,000 euros compared to that which determined the submission of the last declaration.
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