Skip to main content
Non-Resident Taxation Manual (February 2024)

The residence of legal entities

Internal regulations

Regulations: Article 6 Law IRNR

An entity will be considered resident in Spain when it meets any of the following criteria:

  • It was incorporated according to Spanish Law.

  • It has its registered address in Spanish territory.

  • Its effective head office is in Spanish territory. An organisation is considered to have its effective head office in Spanish territory when the management and control of the sum of its activities is exercised from the territory.

In the event that a change of residence occurs the tax period will end when said change takes place.

The Tax Administration may presume that an entity located in a country or territory with zero taxation, or qualified as a tax haven (with effect from July 11, 2021, references made to tax havens or countries or territories with zero or low taxation are They understand the definition of non-cooperative jurisdiction. See Annex IV ), has its residence in Spanish territory when its main assets, directly or indirectly, consist of assets located or rights that are fulfilled or exercised in Spanish territory, or when its main activity is carried out there, unless it is proven that its direction and effective management take place in that country or territory as well as that the constitution and operations respond to valid economic reasons and substantive business reasons other than the simple management of securities or other assets.

Agreement and double residence

If there is an agreement, when an organisation is considered to be resident in both States, the agreements establish in general that it will be considered as resident only in the State where its effective headquarters is located.

Accreditation of tax residence

A legal organisation proves its tax residence in a specific country by means of a certificate issued by the Tax Authority. The period of validity of these certificates is one year. The certificate shall be valid indefinitely if the entity subject to tax is a foreign country, one of its political or administrative subdivisions or its local entities.