TAX CONTROL PLAN 2023 FOR TAX RESIDENTS IN SPAIN, CONSIDERED AS FALSE NON-RESIDENTS BY THE AEAT (Spanish Tax Agency).
The Spanish tax agency will intensify in fiscal year 2023 the control over residents in Spain who artificially reduce their tax bill by taxing as Non-Residents, these taxpayers designated by the tax agency as ” false non-residents” choose to tax by the Non-Resident Tax option and thus they avoid taxing in Spain for their worldwide income and complying with tax obligations such as Tax Return (IRPF), Form 720 and Property Tax.
According to the newspaper Expansión “Agents of the AEAT visit taxpayers at home and deliver a request, through which the recipients are requested to provide, among others, the following information:
Reason for staying in Spain
If they own properties in Spain, they are required to provide the deeds of acquisition of each of the properties.
Information about their economic situation.
This request must be answered within 10 working days.
In the event of not meeting the requirement in a timely manner, there is a risk of opening the corresponding sanctioning file.
There are many means available to the Spanish tax agency to detect so-called false Non-Residents, including bank card operations, mobile phone geolocation, social media surveillance, bills of supplies of the properties that taxpayers own is Spain, passport control with entries and exits from Spain, traffic sanctions etc.
Rosana Tejada as tax advisor in the Law Firm Tejada Solicitors: I advise to go to an advisor specialized in this type of procedures, since in case of actually declaring as “false non-resident” the most sensible and least risky would be to regularize your tax situation as soon as possible in Spain and for taxpayers who are really Non-residents in Spain they should plan and obtain the documents in case of requirement by the AEAT so they can demonstrate that their tax residence is not in Spain, only in this way we can avoid sanctions