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Income exempt from income tax for non-residents without a permanent establishment

List of exempt income

  • Income that, in accordance with the regulations of IRPF is exempt and is received by natural persons , such as, for example, pensions for permanent absolute disability or severe disability or public scholarships.

  • The interest and capital gains derived from movable property obtained by residents in another Member State of the European Union (EU) ) or, since January 1 of 2021, of the European Economic Area (EEA) with effective exchange of tax information (with effect from July 11, 2021, regulatory references to effective exchange of tax information are understood to be made to the existence of regulations on mutual assistance in matters of exchange tax information), or by permanent establishments of said residents located in another Member State, with these exceptions:

    • Where the interest and/or profits are obtained through a tax haven (with effect from 11 July 2021, regulatory references to tax havens are understood to be made to non-cooperative jurisdictions).

    • When they are gains deriving from the transfer of stocks, shares or other rights in a company whose assets consist mainly in real estate properties located in Spain.

    • In the case of individuals, when they are gains deriving from the transfer of stocks, shares or other rights in a company and the taxpayer, at some previous moment during the 12 months prior to the transfer, has participated direct or indirectly in at least 25% of the capital or equity of the said company.

    • In the case of companies, that the transfer does not meet the requirements for application of the exemption provided for in Section 21 of the Corporation Tax Act.

  • The returns derived from the Public Debt .

  • Income derived from securities issued in Spain by non-residents .

  • The returns of non-resident accounts .

  • Income from the leasing, transfer or transmission of containers or bareboat vessels and aircraft , used in international maritime or air navigation.

  • The profits distributed by the subsidiary companies resident in Spain to their parent companies residing in another Member State of the EU or EEA with effective exchange of tax information (with effect from July 11, 2021 , normative references to effective exchange of information are understood to be made to the existence of regulations on mutual assistance in matters of exchange of tax information), or to the permanent establishments of the latter located in other Member States, provided that they meet certain conditions.

  • Income derived from the transfers of securities or the reimbursement of shares in investment funds carried out on any of the official Spanish secondary securities markets, obtained by persons or entities resident in a country with which Spain has signed Agreement with an information exchange clause, unless they are obtained through a tax haven (with effect from July 11, 2021, regulatory references to tax havens are understood to be made to non-cooperative jurisdictions).

  • Old age assistance pensions recognized under Royal Decree 728/1993, of May 14, which establishes old age assistance pensions in favor of Spanish emigrants, (with effect from January 1, 2001).

  • Scholarships and other amounts received by individuals, paid by public administrations, under international agreements and conventions on cultural, educational and scientific cooperation or under the annual Plan for international cooperation approved by the Council of Ministers (with effect from 1 January 2001).

  • The dividends and profit shares obtained by pension funds equivalent to those regulated in the consolidated text of the Law on Pension Plans and Funds (Royal Legislative Decree 1/2002, of November 29), which are resident in another Member State of the European Union or the EEA with effective exchange of tax information (with effect from July 11, 2021, regulatory references to effective exchange of tax information must be understood as being made to the existence of regulations on mutual assistance in matters of the exchange of tax information), or by permanent establishments of said institutions located in another Member State.

  • The dividends and profit shares obtained by collective investment institutions regulated by Directive 2009/65/EC of the European Parliament and of the Council, or by collective investment institutions resident in the EEA Member States with effective exchange of tax information (with effect from 11 July 2021, regulatory references to effective exchange of tax information must be understood as being made to the existence of regulations on mutual assistance in matters of the exchange of tax information); however, under no circumstances may the application of this exemption originate a tax payment lower than that which would have resulted from having applied to these incomes the same rate of Corporation Tax paid by collective investment institutions resident in Spanish territory.

  • The royalties between associated companies , paid to a company resident in a Member State of the European Union or to a permanent establishment of said company located in another Member State of the EU, provided that certain conditions are met requirements (effective July 1, 2011).

  • Capital gains derived from the sale of urban real estate located in Spanish territory that were acquired from May 12, 2012 until December 31, 2012 are exempt by 50 percent. This partial exemption is not applicable:

    • In the case of individuals, when the property has been acquired from or transferred to the spouse or any person related to the taxpayer by straight-line or collateral kinship, consanguinity or affinity until the second degree, inclusive, or from or to a company associated with the taxpayer or with any of the aforementioned persons through any circumstances established in Article 42 of the Commercial Code, regardless of the residence and the obligation to prepare consolidated annual accounts.

    • In the case of companies, when the property has been acquired from or transferred to a person or company associated through any of the circumstances established in Article 42 of the Commercial Code, regardless of the residence and the obligation to prepare consolidated annual accounts, or from or to the spouse of such person or from or to any person related to him/her by straight-line or collateral kinship, consanguinity or affinity until the second degree, inclusive.

  • Exemption for reinvestment in habitual residence for taxpayers from the EU, from the EEA with effective exchange of tax information (with effect from July 11, 2021, regulatory references to the effective exchange of tax information must be understood as referring to the existence of regulations on mutual assistance regarding the exchange of tax information) (applicable to profits accrued since January 1, 2021). 2015): In the case of taxpayers resident in one of these States, capital gains obtained from the transfer of what was their habitual residence in Spain may be excluded from taxation, provided that the total amount obtained from the transfer is reinvested in the acquisition of a new habitual residence. When the reinvested amount is lower than the total of the amount received in the transfer, only the proportional part of the capital gain obtained corresponding to the reinvested amount will be excluded from taxation.