Denmark
Tax residents in Spain with income from Denmark
(The content of this document is merely informative and has been prepared for informative purposes. For more information you can consult directly the Personal Income Tax Law)
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 permanence, sporadic absences will be counted unless the taxpayer proves his tax residence in another country (through a certificate of tax residence 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, as described, turns out to be tax resident in Spain , they will be taxpayers for the Personal Income Tax (IRPF) and you must pay taxes in Spain for your worldwide income , that is, you must declare in Spain the income you obtain anywhere in the world, without prejudice to the provisions of the Convention to avoid international double taxation signed between Spain and the country of origin of the income.
Taking into account 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 tax period is the calendar year. A person will be a resident or non-resident throughout the calendar year since the change of residence does not imply the interruption of the tax period.
The income tax return of natural persons 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 regulate limits and conditions that determine the obligation to submit the tax return, which must be consulted every 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 said 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 related to the 2019 financial year, you would be obliged to submit a personal income tax declaration corresponding to 2019, since the payer of the Danish pension is not obliged to make withholdings on account of Spanish personal income tax.
III.- Obligation to provide information on assets abroad
People residing in Spain must inform the Spanish tax administration 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 over 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 provided refers.
There will be no obligation to report on each of the categories of goods when the value of the set of goods corresponding to each category does not exceed 50,000 euros. Once the informative declaration has been submitted for one or more of the categories of assets and rights, the presentation 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 presentation of the last declaration. .
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