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

List of exempt income

  • Incomes, which, in accordance with the regulations for income tax (IRPF) are exempt and are received by individuals, such as pensions due to total permanent disability or severe disability, and public grants.

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

    • Where the interest and/or gains are obtained through a tax haven (with effect from 11 July 2021, regulatory references to tax havens are understood as references 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.

  • Income derived from Public Debt.

  • Incomes of non-residents deriving from securities issued in Spain.

  • Incomes from non-resident accounts.

  • Incomes from the lease, assignment or transfer of containers or bareboat ships and aircraft used in international maritime or air transport.

  • The profits distributed by subsidiaries resident in Spain to their parent companies resident in another Member State of the EU or of the EEA with effective exchange of tax information (with effect from 11 July 2021, regulatory references to effective exchange of information are understood to be made to the existence of regulations on mutual assistance in the 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 transfer of securities or the redemption of units in investment funds made on any of the official secondary securities markets in Spain, obtained by persons or entities resident in a country with which Spain has signed an agreement with an exchange of information clause, unless it is 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).

  • Old age pensions provided for by Royal Decree 728/1993, of 14 May, establishing old age pensions in favour of Spanish emigrants (with effects from 1 January 2001).

  • Grants and other amounts received by individuals and paid by the Public Administrations by virtue of international cultural, educational and scientific cooperation agreements or by virtue of the Annual International Cooperation Planapproved by the Cabinet of Ministers (with effects from 1 January 2001).

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

  • The dividends and profit shares earned by collective investment undertakings regulated by Directive 2009/65/EC of the European Parliament and of the Council, or by collective investment undertakings resident in EEA Member States with effective exchange of tax information (with effect from 11 July 2021, regulatory references to effective exchange of tax information are to be understood as references to the existence of legislation on mutual assistance on 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 an EU Member State or to a permanent establishment of such a company located in another EU Member State, provided that certain conditions are met (with effect from 1 July 2011).

  • An exemption applies to 50 percent of the capital gains resulting from the sale of urban real estate in Spain, which has been purchased between 12 May 2012 and 31 December 2012.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 main residence for taxpayers from EU, EEA with effective exchange of tax information (with effect from 11 July 2021, regulatory references to effective exchange of tax information are to be understood as references to the existence of regulations on mutual assistance on exchange of tax information) (applicable to gains accruing from 1 January 2015):In the case of taxpayers resident in one of these States, capital gains obtained from the transfer of what has been their main residence in Spain may be excluded from taxation, provided that the total amount obtained from the transfer is reinvested in the purchase of a new main 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.