Income obtained in Spain

Non-resident individuals and organizations shall be deemed nonresident taxpayers in so far as they obtain income in Spain.
Criteria to determine when income is deemed to have been obtained in Spain section 13 5/2004 Act :

Earnings derived from economic activities
• Those gained through a permanent establishment situated in Spain.
• Those obtained not through a permanent establishment when:
a) They are derived from economic activities performed in Spain, except for revenue from the installation or assembly of machinery or installations of foreign origin, when these operations are performed by the supplier and their amount does not exceed 20% of the cost price. In spite of the above, earnings obtained as payment in the international trade of goods, including additional expenses and mediation fees, are not considered to have been obtained in Spain.
b) They are payment for services rendered or used in Spain.
When these services support economic activities performed in Spain only partially, those earnings shall be deemed obtained in Spain only for the part that supports the activities performed in Spain.
c) They are derived from personal performances in Spain of artists and athletes, even when the earnings are received by a different person or organization.

Wages and Salaries
• In general, any income derived from personal dependent services performed in Spain.
• Compensation paid by the Spanish Government, except where the work is completely performed abroad and such earnings are subject to a foreign personal income tax.
• Compensation received by employees of ships and aircraft in international traffic paid by resident employers or organizations or by permanent establishments located on Spain, except where the work is performed wholly abroad and such earnings are subject to a personal income tax abroad.

Pensions and other similar benefits
• When they are derived from employment performed in Spain.
• When they are paid by a resident person or organization or by a permanent establishment located in Spain.
Remuneration of directors and members of Boards of Directors, of Boards performing their duties, or of representative organizations
• When they are paid by an organization resident in Spain.

Income from financial assets
• Dividend income and other earnings derived from stock ownership of organizations that are resident of Spain.
• Interest and other income from debt-claims of every kind paid by resident individuals or organizations or by a permanent establishment located in Spain or repayments of loans of capital used in Spain.
• Royalties paid by resident individuals or organizations or by permanent establishments situated on Spain or which are used in Spain.
• Other income from movable capital paid by individuals running economic activities or related to them, by organizations resident in Spain or by permanent establishments located in Spain.

Earnings from real estate property
• Earnings derived, directly or indirectly, from real estate assets located in Spain or from rights relating to these assets.
Presumed income imputed to individuals who are titleholders of urban real estate not performing economic activities.
• Of buildings located in Spain.

Capital gains
• When they are derived from securities issued by resident individuals or organizations.
• When they are consequence from financial or other movable assets situated in Spain or from rights to be honoured in Spain.
• When they come from real estate assets situated in Spain.
• When any asset located in Spain or right to be satisfied or exercised in Spain becomes property of the taxpayer, even when not derived from a previous transaction, as in gains from gambling.
Possible exemptions applicable to any type of income:
Income paid to nonresident individuals or organizations by foreign permanent establishments shall not be deemed to be obtained in Spain when the services rendered are directly linked with the activity of the permanent establishment in the foreign territory.