Question Spain - 4 year fiscal residence exit penalty

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uncreative

New member
As far as I know, that is only the case when you move as a spanish tax resident to a tax haven like p.e Bahamas.
In this case, you also have to prove that you spent at least 183 days there in the year you left.
Moving to another low tax country within the EU is not a problem and without this restriction.

Sources:

"Individuals of Spanish nationality who accredit their new fiscal residence in a country or
territory labelled as a tax haven will not lose their status as taxpayers for Individual Income Tax.
This rule is of application during the tax period in which the change of residence occurs and for
the next four tax periods"

"In a recent judgement dated 16-06-2011, the Supreme Court (TS) reiterated the criterion applied in other prior judgements in relation to the concept of tax residency in Spain for people wishing to leave Spain. This judgement examined the case of an elite sportsperson who wished to establish their residence for tax purposes in Andorra, a country regarded as a tax haven by Spanish authorities. The reason was preventing Spain from taxing this person’s income under the worldwide income rule.

The judgement concluded that, in order to accept the abandonment of the Spanish territory, proof is required of a minimum physical stay of 183 days in the other country. Furthermore, the fact that Andorra is a tax haven means that sporadic absences don’t need to be recorded (short stays in other countries), and this means that it is easier to reach the 183-day figure in Spain."

"In the case of countries or territories
labelled as tax havens, the Tax Administration can demand proof of stay in that tax haven over a
period of 183 days within the calendar year."

 
Last edited:

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Is it true? Upon (fiscally) exiting Spain, they impose an additional 4 year fiscal residence on you?

More worrying is if you have a good chunk of investments. See what I wrote back in 2020 about Spain Exit Taxation below. I have no idea how they track this and hope to never live in Spain and leave to ever find out.

For example if you lived in Spain and had a current portfolio of over 4m euros if you tried to leave Spain to avoid capital gains tax in future you will be hit with Spain's 'Exit Taxation'. You will be taxed on unrealized gains in your stock portfolio at 23%. However if you move to another EU country you will only need to declare and be taxed on gains if you sell within 10 years or then move outside EU...lol. Still a long time to be watched by home country.

Perhaps explain your specific situation?
 

TheCryptoAnt

Entrepreneur
this sounds nice in theory however without income you can't do much (own stuff, invest, do business, ...) - mind you elaborate on your strategy?

Im thinking having one of your companies pay for your life as 'representation services' is the way to go.

Also if you move to a 0tax jurisdiction and open bank accounts there with lets say your permanent resident card then those accounts will not be CRS reportable so who cares what Spain says.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Also if you move to a 0tax jurisdiction and open bank accounts there with lets say your permanent resident card then those accounts will not be CRS reportable so who cares what Spain says.

True.

Hummm....I would be interested to know how Spain plan to enforce any of this. If you leave Spain and EU, cut ties and never come back and stop communicating with the taxman or filing taxes (as non-resident if they require this).
 

void

Entrepreneur
Im thinking having one of your companies pay for your life as 'representation services' is the way to go.

Also if you move to a 0tax jurisdiction and open bank accounts there with lets say your permanent resident card then those accounts will not be CRS reportable so who cares what Spain says.
ok, but anytime you want to buy or invest money in first world country you're asked where is the money coming from

I remember the face of French notary when I told him my money will come from Lithuanian or Bulgarian IBAN and the choice is his :D I only wonder what he would say about Caymans or Seychelles
 

TheCryptoAnt

Entrepreneur
True.

Hummm....I would be interested to know how Spain plan to enforce any of this. If you leave Spain and EU, cut ties and never come back and stop communicating with the taxman or filing taxes (as non-resident if they require this).

Narrator: 'The wont, because they cant'

ok, but anytime you want to buy or invest money in first world country you're asked where is the money coming from

Think outside the box, everything is possible with some imagination.

I remember the face of French notary when I told him my money will come from Lithuanian or Bulgarian IBAN and the choice is his :D I only wonder what he would say about Caymans or Seychelles

The issue in this sentence is you doing business in France, not Cayman nor Seychelles.
Admittedly you shouldnt be using Seychelles for almost nothing tho.
 

pedromaldonado

New member
Is it true? Upon (fiscally) exiting Spain, they impose an additional 4 year fiscal residence on you?
Only if you leave to a "paraíso fiscal" according with the Spanish goverment. What people do: first they live for 5 years in another EU country or a country that Spain has a "convenio de doble imposición" with: Convenios de Doble Imposición (10-11-2022)
After 5 years, they can move to any country in the world. Spanish government could not ask them anything related to taxes.

Other option is not saying a word about where are you leaving and try to disappear from Agencia Tributaria radar.

Maybe another option would be to move in another EU country for 183 days with a tax residency for this year before moving to a tax haven.
Exactly. That is what people do. They use a "país puente" before living in a "tax heaven" country.
 
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