Tax Commentary 4-2015

Amendment of the Personal Income Tax Regulations and of the Nonresident Income Tax Regulations


On June 11, 2015, the Official State Gazette published Royal Decree 633/2015, of July 10, 2015, amending the Personal Income Tax Regulations, approved by Royal Decree 439/2007, of March 30, 2007 (the “Personal Income Tax Regulations” or the “Regulations”) and the Nonresident Income Tax Regulations, approved by Royal Decree 1776/2004, of July 30, 2004 (the “Nonresident Income Tax Regulations” or the “Regulations”).

It must be remembered that a first round of amendments to the Personal Income Tax Regulations (concerning advance payments and tax credits for large families or dependents with disabilities) had already been introduced in Royal Decree 1003/2014, of December 5, 2014.

Below is a summary of the main new features, without entering into the amendments in which the royal decree simply adapts the references to specific articles of the Law or reiterates matters regulated in the Law.

1. Personal income tax

  • 1.1 Exemptions
  • 1.2 Salary income
  • 1.3 Income from movable capital
  • 1.4 Income from economic activities
  • 1.5 Capital gains and losses
  • 1.6 Tax credits
  • 1.7 Special “inbound expatriates” regime
  • 1.8 Capital gains due to change of residence (exit tax)
  • 1.9 Withholdings
  • 1.10 Formal reporting obligations

2. Nonresident income tax

  • 2.1 Draft return
  • 2.2 Base for calculating the obligation to withhold tax on cash payments or payments in kind
  • 2.3 Optional regime for taxpayers resident in other EU member states
  • 2.4 Capital gains. Application for refund due to reinvestment in principal residence

3. Entry into force


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