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Practical manual for Income Tax 2023.

3. Loss of taxpayer status due to change of residence

Regulations: Articles 14.3 and 95 bis Law IRPF , 63.2 and 121 Regulation IRPF

The assumptions that give rise to the submission of a supplementary self-assessment are the following:

a. In general

In the event that the taxpayer loses his status due to change of residence, all income pending imputation, in accordance with the provisions of the first paragraph of article 14.3 of the Income Tax Law, must be included in the tax base corresponding to the last tax period to be declared for the aforementioned tax.

To do so, a supplementary self-assessment must be made, where applicable, without penalty or late payment interest or any surcharge, within three months from when the taxpayer loses his/her status due to a change of residence.

b. Transfer of residence to another Member State of the European Union

Furthermore, in accordance with the provisions of the second paragraph of article 14.3 of the Personal Income Tax Law , when the change of residence occurs to another Member State of the European Union, the taxpayer may choose to impute the pending income in accordance with the provisions of the previous paragraph, or to present, as each of the pending income to be imputed is obtained, a supplementary self-assessment without penalty, late payment interest or any surcharge, corresponding to the last period to be declared by the Personal Income Tax .

The self-assessment must be submitted within the declaration period for the tax period in which said income should have been imputed had the loss of taxpayer status not occurred.

c. Imputation of capital gains due to change of residence in article 95 bis of the Personal Income Tax Law

There is also, as of January 1, 2016, the special case of regularization by imputation of capital gains due to change of residence when the circumstances provided for in article 95 bis of the Personal Income Tax Law . The capital gains referred to in the aforementioned article must be included in the tax base corresponding to the last period to be declared for this IRPF , with a supplementary self-assessment being filed, where applicable, without any penalty, late payment interest or surcharge, within the declaration period for IRPF corresponding to the first fiscal year in which the taxpayer did not have such status.

If the taxpayer chooses to apply the special provisions provided for in the aforementioned article 95 bis of the Personal Income Tax Law in the event of a change of residence to another Member State of the European Union or the European Economic Area with which there is an effective exchange of tax information, and any of the circumstances provided for in article 95 bis.6.a) of the Personal Income Tax Law occur which determine the obligation to self-assess the capital gain, the self-assessment must be submitted within the period between the date on which any of the circumstances referred to in article 95 bis.6.a) of the Personal Income Tax Law occurs and the end of the immediately following period for Personal Income Tax returns, or within the period for Personal Income Tax returns corresponding to the first fiscal year in which the taxpayer did not have such status as a result of the change of residence, if this were later.

Therefore, according to this last rule, when the taxpayer loses his status in 2023, the tax period to which the supplementary self-assessment will correspond will be 2022, as it is the last period in which he has had the status of IRPF taxpayer.

Note: In the "Supplementary declaration" section of the declaration, you must mark with an "X" the box [110] if the supplementary declaration is motivated by having lost the status of taxpayer due to a change of residence (general assumption provided for in the first paragraph of article 14.3 of the Tax Law). box [111] if the reason is the change of residence to another Member State of the European Union and the taxpayer chooses to impute the pending income as it is obtained, in accordance with the provisions of the second paragraph of article 14.3 of the Personal Income Tax Law and box [112] if the supplementary declaration is motivated by the occurrence of any of the circumstances provided for in article 95 bis of the Personal Income Tax Law .

d. Loss of resident status of the partner who applied the tax deferral regime in spin-off, merger or absorption operations and exchange of securities when he transfers his residence to a Member State of the European Union or the European Economic Area

Regulations: Articles 80.4 and 81.3 LIS ; art. 14.3 Law Income Tax

In the case of natural person partners who have applied the special tax deferral regime provided in Chapter VII of Title VII of the LIS and lose their status as residents in Spanish territory, the difference between the market value of the shares or participations received in the exchange or in the spin off, merger or absorption operations, at the time of the change of residence, and their tax value (which is the acquisition value and seniority of the shares delivered) will be integrated into the taxable base of the ##3## IRPF ##3## of the last tax period to be declared for this tax.

Regarding the LIS see Law 27/2014, of November 27, on Corporate Tax.

Now, when the partner acquires residence in a Member State of the European Union or the European Economic Area with which there is an effective exchange of tax information under the terms set forth in the First Additional Provision of Law 36/2006, of November 29, on measures to prevent tax fraud, payment of the tax debt resulting from the application of the above will be deferred by the Tax Authority at the request of the taxpayer until the date of transfer to third parties of the affected shares or participations, with the provisions of LGT and its implementing regulations applying, regarding the accrual of late payment interest and the establishment of guarantees for such deferral. If the supplementary declaration responds to this circumstance, the taxpayer must select this option in the "Supplementary declaration" section of the declaration.

Regarding the LGT see Law 58/2003, of December 17, General Tax Law ( BOE of December 18). It should also be noted that the first Additional Provision of Law 36/2006, of November 29, on measures for the prevention of tax fraud, has been modified by article sixteen.One of Law 11/2021, of July 9, on measures for the prevention and fight against tax fraud (BOE of July 10).