Frequently asked questions about leaving Spanish tax residence
From what point am I no longer considered a Spanish tax resident?
The end of Spanish tax residence does not result from the mere act of leaving the territory. The Spanish tax authorities examine several criteria: the length of presence in Spain (fewer than 183 days per year), the location of the family home, the centre of economic interests and the source of principal income. Even after moving to France, you may still be regarded as a Spanish tax resident if these criteria are not met. The effective date of cessation of residence must be determined on a case-by-case basis.
What happens if I am considered tax resident in both countries during the year of departure?
The transition year carries the highest risk of dual tax residence. Spain may continue to regard you as resident for part of the year, while France may already treat you as resident. In that case, the France-Spain tax treaty of 8 January 1963 determines your single tax residence by applying a series of tie-breaker criteria: permanent home, centre of vital interests, habitual abode, and finally nationality. This situation requires a precise analysis in order to avoid double taxation.
Must I continue to declare my income in Spain after returning to France?
After returning to France, you are generally no longer required to declare your worldwide income in Spain. However, certain Spanish-source income remains taxable in Spain even if you have become non-resident: rental income, capital gains on Spanish real estate and income from activities carried out in Spain. In such cases, you must declare this specific income in Spain under the non-resident regime, while also declaring it in France with a mechanism to eliminate double taxation.
What happens to my Spanish tax identification number (NIE or NIF) after departure?
Your Spanish tax identification number (NIE for foreigners, or NIF) does not disappear after leaving Spain. It remains active and must continue to be used for any transaction involving Spain: non-resident real estate income declarations, property sales, inheritance of property located in Spain, or any other administrative or tax procedure. This number is permanent and must not be surrendered.
What administrative formalities must I complete before leaving Spain?
Before departure, it is advisable to complete several formalities: inform the Spanish tax authorities of the change of residence, submit your final tax return as a resident, update your administrative status (including social security bodies where applicable), obtain a tax residence certificate if necessary to justify your past status, and anticipate the tax consequences relating to your Spanish assets (real estate, bank accounts). Insufficient preparation may lead to subsequent difficulties.
If I retain property in Spain, what are the tax consequences?
Retaining property in Spain after departure gives rise to several tax obligations as a non-resident. You must file annually in Spain either the rental income received (if the property is let) or a notional taxable base calculated on the cadastral value (if the property is available for personal use). In the event of a future sale, the capital gain will be taxable in Spain with withholding at source. These income items or gains must also be declared in France, where a tax credit generally prevents double taxation.
How can I prove that I am no longer a Spanish tax resident?
To prove the cessation of Spanish tax residence, several elements may be relevant: a French tax residence certificate issued by the French tax authorities, evidence of presence in France (employment contract, lease agreement, utility bills), proof of transfer of your centre of economic and family interests, and possibly confirmation from the Spanish tax authorities of your departure. These documents may be required by French or Spanish institutions to justify your new status.
What risks arise if I do not properly prepare my departure from Spanish tax residence?
A poorly prepared departure may result in several consequences: prolonged tax liability in Spain, dual filing obligations in both countries with a risk of double taxation, penalties for failure to file or late filing, difficulties in subsequent tax audits and adjustments several years after departure. The most problematic situations often involve taxpayers who believe that simply moving house or closing a bank account is sufficient to end tax residence, which is legally insufficient.
