Since 2025, the Spanish Tax Agency has reinforced its scrutiny of tax residency changes declared by individuals who claim to have moved to Portugal. These procedures particularly affect remote workers, pensioners and high-income or high-net-worth individuals, whose tax situations are of greater relevance from a revenue and compliance perspective.
Tax residency is a key factor in determining the country in which an individual is subject to tax on their worldwide income. Generally, a person is considered tax resident in a country if they spend more than 183 days there during a calendar year or if that country represents the centre of their economic, professional or personal interests. Both Spain and Portugal apply similar criteria, which can lead to conflicts where the individual’s situation is not clearly defined.
Portugal has become an attractive destination for foreign nationals in recent years due to certain tax incentives, which has led to an increase in declared residency transfers. However, Spanish tax authorities have identified situations in which taxpayers maintain significant ties with Spain — such as economic activity, a habitual residence or close family connections — while claiming tax residency in Portugal, raising doubts as to the authenticity of the relocation.
As a result, the Spanish Tax Agency has intensified audits to verify whether the transfer of tax residence has actually taken place. These checks may involve requests for documentation demonstrating genuine presence in Portugal, including lease or property purchase agreements, employment or professional contracts, invoicing records, bank movements and other evidence proving where the taxpayer’s personal and economic life is effectively centred.
Where sufficient evidence of disengagement from Spain is not provided, the Spanish tax authorities may consider that the taxpayer remains a Spanish tax resident. In such cases, taxation on worldwide income may be enforced, together with tax reassessments, interest and potential penalties.
Conclusion
The strengthening of Spanish tax audits relating to changes of tax residence to Portugal highlights the increasing level of scrutiny applied by tax authorities in cross-border mobility situations. While changing tax residence is a legitimate right, it must be supported by a real and demonstrable change in personal and economic circumstances. Proper tax planning and strict compliance with legal requirements are essential to avoid tax disputes and adverse consequences in both jurisdictions.
