Double Taxation Agreements in Spain

Relocating international talent is a key strategy for many companies—but it also comes with tax challenges. How can you prevent an employee from being taxed twice on the same income? The answer lies in Double Taxation Agreements (DTAs). Spain has signed over 90 treaties with other countries to protect companies and professionals from double taxation. In this post, we explain how these agreements work, what they mean for your business, and how Adlanter helps you apply them correctly.

What are Double Taxation Agreements?

Double Taxation Agreements (DTAs) are bilateral treaties that define which country has the right to tax certain income when a person or business has tax ties in two jurisdictions. Their purpose is to:

• Prevent the same income from being taxed twice.
• Establish clear criteria for tax residency.
• Encourage international investment and cooperation.

Why are DTAs relevant for companies with international mobility?

When a company sends employees abroad or hires international talent, DTAs allow you to:

• Determine which country has the primary right to tax.
• Apply specific exemptions or deductions.
• Avoid disputes with tax authorities.

Which countries does Spain have agreements with?

Spain has signed DTAs with more than 90 countries, including:

• All EU member states
• Key trade partners such as the U.S., China, Mexico, Brazil, Japan, and Canada
• Strategic investment jurisdictions like Switzerland, the UAE, and Singapore

You can view the full list here

What does each agreement cover?

Although each DTA has its own specifics, they all include:

• Definition of tax residency
• Tie-breaker rules for dual residency situations
• Tax treatment of employment income, dividends, interest, and royalties
• Methods to avoid double taxation (exemption or credit)
• Information exchange clauses

Practical examples: How DTAs affect your expatriates

Example 1 – Assignment to Germany

A Spanish company sends an engineer to Berlin for 12 months. The Spain-Germany DTA states that:

• If the employee stays less than 183 days and the salary is paid by the Spanish company, they will be taxed in Spain.
• If the stay exceeds that period or the German entity covers the cost, taxation will apply in Germany.

Example 2 – Hiring talent in Mexico

A Spanish startup hires a Mexican developer who works remotely from Mexico City. Under the Spain-Mexico DTA:

• Double taxation is avoided if the employee already pays taxes in Mexico.
• Deductions may be applied in Spain if the developer is considered a tax resident.

How does Adlanter help?

At Adlanter, we approach every global mobility case with expert insight and a fully personalized strategy. We thoroughly analyze the applicable DTA based on the country and specific situation, determine the employee’s tax residency, and optimize tax obligations for both the company and the individual.

We also handle all necessary documentation: residency certificates, tax confirmations, and procedures with local authorities. Our service includes a pre-assignment tax diagnosis, tie-breaker rule application, coordination with local advisors, and support during audits or tax inspections.

This ensures legal certainty, tax efficiency, and peace of mind for your organization and your international team.

Are you relocating international talent? Hiring remote professionals abroad? Avoid double taxation and protect your business. Contact our global mobility experts.