The tax treatment in Spain on partners’ remuneration

Given the doubts raised by the reclassification of income tax on partners’ remunerations, the Spanish Tax Agency concluded that the concept of entrepreneur or professional concerning the VAT has been harmonized at the European level. In Spain, therefore, the tax treatment of the revenues received by a taxpayer is irrelevant when classifying his activities as an economic activity for the Directive on VAT.


  • The fact that the return obtained by a partner qualifies as a professional activity for the IRPF does not automatically mean that the partner will be a VAT taxpayer. It will still be necessary to analyze the circumstances in each case.
  • If the partner self-manages the production activities for the development of his professional activity, the services rendered will be subject to the VAT. The classification as entrepreneur or professional, for the IRPF as well as the VAT, requires prior registration on the census list of entrepreneurs, professionals and collecting agents, by presenting the corresponding census form.
    Secondly, as a taxpayer of the VAT, a partner must invoice the services rendered to the company or, if need be, to clients of the company and present the self-assessment for the tax.
  • If the partner-company relationship is a working relationship (both of dependent and extraneous character), services rendered by the partner are not subject to the VAT. Given that, for the IRPF, returns will be classified as an economic activity, he will need to register on the census list for entrepreneurs, professionals and collecting agents (model 036).

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Please note that this article is not intended to provide legal advice.

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