11. Loss of taxpayer status due to change of residence

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

Note: In this case, the situation that motivates the regularization (loss of taxpayer status in 2025) necessarily affects tax periods prior to 2025 (the last year in which it had taxpayer status, if applicable, would be 2024). If it affects another tax period, please refer to the practical manual corresponding to the relevant tax period.

The circumstances that give rise to the filing of a corrective self-assessment are the following:

a. In general

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

To do this, a corrective self-assessment must be carried out, where appropriate, without penalty, late payment interest or any surcharge, within three months from the date the taxpayer loses their 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 Law on IRPFABBRWhen the transfer of residence takes place to another Member State of the European Union, the taxpayer may choose to impute the outstanding income in accordance with the provisions of the preceding paragraph, or to submit, as each of the outstanding income items is obtained, an amended self-assessment without penalty, late payment interest or any surcharge, corresponding to the last period that must be declared by the IRPFABBR.

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 Law of PIT

There is also, from 1 January 2015, the special case of regularization for imputation of capital gains due to change of residence when the circumstances provided for in the Article 95 bis of the Law of IRPFABBR. The capital gains referred to in the aforementioned article must be included in the taxable base corresponding to the last period that must be declared by this taxpayer. IRPFABBR where applicable, a corrective self-assessment will be made, without penalty, late payment interest or any surcharge, within the declaration period of IRPFABBR corresponding to the first year in which the taxpayer did not have such status.

If the taxpayer opts for the application of the specialities provided for in the aforementioned article 95 bis of the Law of PIT In the event of a change of residence to another Member State of the European Union, or of 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 Law of the European Union occur. PIT that determine the obligation to self-assess the capital gain, the self-assessment will be submitted within the period between the date on which any of the circumstances referred to in article 95 bis.6.a) of the Law of the PIT and the end of the immediately following period for Personal Income Tax returns, or 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 2025, the tax period to which the corrective self-assessment will correspond will be 2024, as it is the last period in which he has had the status of taxpayer of the PIT.

Note: If the amended tax return for the 2025 tax year is due to this circumstance, the taxpayer must mark the box with an "X". [110] of the "Corrected Self-Assessment" section of the self-assessment, if it is motivated by having lost the status of taxpayer due to a change of residence (general case provided for in the first paragraph of article 14.3 of the Law of IRPFABBR); the box [111] If the reason is a change of residence to another Member State of the European Union and the taxpayer chooses to impute the outstanding income as it is obtained, in accordance with the provisions of the second paragraph of Article 14.3 of the Law of IRPFABBR and the box [112]if the corrective self-assessment is motivated by the occurrence of any of the circumstances provided for in article 95 bis of the Law of IRPFABBR.

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 PIT

In the case of individual partners who have applied the special tax deferral regimeprovided for in Chapter VII of Title VII of the LIS and lose their status as residents in Spanish territory, will be integrated into the tax base of the PIT of the last tax period that must be declared for this tax, 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), unless the shares or participations are assigned to a permanent establishment located in Spanish territory.

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 amended return is due to this circumstance, the taxpayer must select this option in the "Amended Self-Assessment" section of the return.

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