Double taxation Germany–Spain
Individuals and businesses with connections to both Germany and Spain may face tax obligations in both countries. The Germany–Spain double-tax treaty allocates taxing rights for many categories of income and provides mechanisms for relieving double taxation.
Tax residence first
Before individual income is analysed, residence for treaty purposes generally has to be determined. Where a person is resident under the domestic law of both States, the treaty applies successive tests including permanent home, centre of vital interests, habitual abode and nationality.
Real estate
Income and gains from real estate situated in Spain may be taxed in Spain. The State of residence may also apply its domestic rules, with double taxation then relieved in accordance with the treaty.
Other income
Employment income, business profits, pensions, dividends, interest and other categories each have their own treaty rules. The treatment of one category should not automatically be applied to another.
Inheritance tax
The Germany–Spain treaty concerns taxes on income and capital. There is no equivalent specific bilateral inheritance-tax treaty between the two States.
How we can help
We analyse German-Spanish tax matters, determine treaty residence and coordinate Spanish tax obligations with the international position.