If an individual is a tax resident in Spain, he or she is a Spanish taxpayer and is obliged to file Personal Income Tax (IRPF), being obliged to pay tax in Spain on his or her worldwide income (income obtained anywhere in the world).
In the event that the foreign income has been obtained in other countries by virtue of which Spain has signed an agreement to avoid double taxation, the content of the agreement in question must be used to determine and avoid double taxation in the payment of taxes.
Double taxation agreements determine when income must be declared in the country of residence of the taxpayer or in the country of origin of the income. In some cases, a shared power is also provided for.
Generally, in the case of double taxation, it will be up to Spain as the country of residence to arbitrate these measures, which normally consist of the application of a deduction.
In the event that a foreign income comes from a country with which there is no double taxation agreement with Spain, this income will generally be taxed in Spain. If this income is also taxed in the other country, the taxpayer may apply the deduction for international double taxation provided for in Article 80 of the Personal Income Tax Law 35/2006, of November 28th.
The IRPF tax period covers the whole calendar year. The tax return must be filed between the months of April and June of the year following the year in which the payment obligation arises.
