Taxation of non-resident artists and sportsmen and sportswomen

Spanish Tax Authorities has prepared certain guidelines that are communicated to facilitate voluntary compliance with tax obligations related to the performances of artists and sportsmen and sportswomen who are not resident in Spanish territory, with the aim of reducing litigation in this area.

Artists and sportsmen and sportswomen

Non-resident artists and athletes who perform in Spain should take note of their taxation obligations to avoid any legal consequences. The Spanish tax laws require that income generated from performances in Spain is subject to taxation, regardless of the performer’s nationality or country of residence.

It is important to understand who is considered an artist or athlete and the nature of the income that is subject to taxation. Artists are defined as those who incorporate an element of entertainment or spectacle into their activity. This includes actors, musicians, DJs, and other performers who engage in artistic activities. Athletes, on the other hand, are those who engage in sports-related activities, such as professional athletes and sports coaches.

For non-resident artists and sportmen and sportswoman (athletes), it is important to note that income received by a third party, such as a company, can still be subject to taxation. This means that even if the income is not paid directly to the performer, it can still be subject to taxation. The tax rate for non-residents is 24%, with deductions for certain expenses and a requirement for reasonable and proportional taxation.

It is also important to understand the territorial allocation of income for artists and athletes who perform in multiple countries. Using a proportional approach to distribute income generated from performances in Spain compared to the total number of performances is suggested. This ensures that the taxation is fair and proportionate, taking into account the performer’s activities outside of Spain.

Glezco, with you

From Glezco Tax and Legal, as specialized consultants, we can help non-resident artists and athletes navigate the complex world of international taxation. We can provide guidance on determining which income is subject to taxation, the nature of the income, and how much tax should be paid. We can also assist with the filing of tax returns and help ensure that non-residents are taxed fairly and proportionally for their performances in Spain.