Understanding tax residence and domicile in Spain

Where is home in the digital age? It’s no longer just a physical address – it’s wherever our computers are. Since the 1990s people have moved between Spain and the UK by choice more than out of necessity calling themselves expatriates rather than immigrants. The coronavirus pandemic brought into existence the buzzword ‘nomad working’. This emerging trend is turning the freedom of movement into a highly sought-after lifestyle. It’s becoming the new norm. Therefore it is important to know where home is.

With the rise of digital nomadism tax authorities are becoming warier of how individuals perceive their residence and domicile which are defined differently in the UK and Spain. Furthermore the UK’s HMRC and Spain’s tax agency (AEAT) have increased their cooperation substantially since Brexit building upon the annual common reporting standard (CRS).

Counting days in the UK and Spain

Tax residency...