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Gibraltar Spain Tax considerations

Updated: Nov 29, 2021

1st January 2022 will see the new Gibraltar – Spain Tax Treaty become effective. Ovrnite is the Tax Residency App to assist Gibraltar Tax Residents in complying with obligations arising under the Tax Treaty.


As from 1 January 2022 Gibraltar Tax Residents have to ensure that they comply with the requirements for establishing Gibraltar tax residency – namely – being present in Gibraltar for 183 days per year. Spending 183 days in Spain in the same year, could lead to a Gibraltar resident satisfying the criteria for Spanish tax residency as well. The treaty provides for a tie breaker mechanism to determine where an individual is resident in those circumstances with an individual spending 183 nights in Spain being deemed to be tax resident in Spain. The position becomes more complex when days and nights spent elsewhere are factored in – if you are a regular traveller you must ensure you spend more time in Gibraltar than Spain overall if you don’t want time spent elsewhere to be automatically added to time in Spain.


Ovrnite keeps an accurate track of where you spend your days and nights and is an extremely important aspect of establishing or maintaining tax residency in Gibraltar and/or avoid tax residency in Spain – this is a common feature of tax residency rules in most jurisdictions.


The cross-border lifestyle led by many people that call Gibraltar home, means that we have to be careful to comply with these rules – particularly as “a day” constitutes any time spent in a country – not just a full day. Ovrnite assists Gibraltar Tax Residents by automatically keeping track of days and nights spent in Gibraltar, Spain and elsewhere.


Ovrnite also contains a “Schengen Area Tracker” which assists British Citizens in keeping track of time spent in the Schengen Area. Under current rules British Citizens may spend only 90 days in every 180 days inside the Schengen Area. The Schengen time limit is based on a rolling 180 day period which is particularly difficult to keep track of. It is important to keep track of time spent inside the Schengen Area in order to comply with the visa free travel restrictions.


The App launched shortly after the Gibraltar Government’s publication last week published of a 75 page guidance booklet to assist Gibraltar residents with the new Treaty that will become effective this coming 1st January 2022


Ovrnite is available for download free of charge in the App. Store and on Google Play.


Further information about the app. is available at www.ovrnite.app



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