New special residency accreditation system for the purpose of applying the exemption of article 14.1(c) of the rewritten text of the Non-Resident Income Tax Act (TRLIRNR).

On 19 October, Royal Decree 595/2019 of 18 October amending the Regulation on Non-Resident Income Tax, approved by Royal Decree 1776/2004 of 30 July, was published in the Official State Gazette (BOE).

The aim of this amendment is to approve a special system for the accreditation of residence by pension funds and collective investment institutions for the purpose of applying the exemption provided for in Article 14.1(c) of the TRLIRNR.

This amendment is introduced by adding a new third additional provision to the Non-Resident Income Tax Regulation.

The accreditation forms that are expected to be published in BOE, through the amendment of Order EHA/3316/2010 of 17 December, will have the following contents:

  • For the pension funds referred to in paragraph 1(a) of the third additional provision (other than those referred to in the third subparagraph of this point):

    FORM 1 - EU Pension Funds - Model Declaration of Residence for the purpose of applying the exemptions provided for in Articles 14.1.c) and 14.1.k) IRNR Act.

  • For alternative collective investment undertakings as referred to in paragraph 1.c) of the third additional provision:

    FORM 2 - Alternative Collective Investment Institutions [A.P. Three.1(c) RIRNR] - Return template of Residence for the purpose of applying the exemption provided for in Article 14.1.c) IRNR Law [A.P. Three.2.c) 2]

  • For the entities covered by paragraph 1(b) and (c) of the third additional provision which are considered to be entities under the income allocation regime:

    FORM 3 - Return template for the purposes of accrediting the status of entity under the income attribution regime and the percentage of participation of its members entitled to the exemption provided for in article 14.1.c) IRNR Law [A.P. Three.3]

Madrid, 21 October 2019