Corporation Spanish tax resident


My corporation is tax resident in Spain. Must i pay IRNR?

Short response: 

Your corporation is Spanish Tax Resident, therefore do not have the IRNR.

Long response: 

Residency for legal persons

An organisation is considered to be resident in Spain when it complies with any of the following criteria:

  • it was incorporated according to Spanish Law.
  • It has its registered address in Spanish territory.
  • Its effective head office is in Spanish territory. An organisation is considered to have its effective head office in Spanish territory when the management and control of the sum of its activities is exercised from said territory.

In the case of a change of address, the tax period will end when this change has taken place.

The Tax Administration will presume that an organisation located in a country or territory considered to be a tax haven has its residence in Spanish territory when its main assets, directly or indirectly, consist of assets situated in or rights that it satisfies or exercises in Spanish territory, or when its main activity is undertaken here, except when it proves that its address and effective management take place in that country or territory, and also that its incorporation and operations correspond with valid economic motives and substantive business reasons that are distinct from the simple management of securities or other assets.

• Accreditation of tax residency.
A legal organisation proves its tax residence in a specific country by means of a certificate issued by the Tax Authority. The period of validity of these certificates is one year.