Dual tax residence risk: Spain vs Germany (IT contractor)
You work as an IT contractor, manage projects remotely, and move freely across Europe. Within a single tax year, you spend part of your time in Spain and part in Germany. You do not deliberately “relocate”, yet factual indicators of tax residency arise in both countries. Tax authorities assess facts, not intentions. In this situation, two jurisdictions may simultaneously consider you a tax resident. This creates a real risk of overlapping tax claims, conflicting reporting obligations, penalties, and prolonged disputes.
Input Data
- Status: IT contractor / freelancer
- Income: service income, invoicing EU clients
- Presence: time split between Spain and Germany
- Housing: rented or available accommodation in both countries
- Family / personal ties: distributed
- Banking / expenses: accounts and spending across jurisdictions
- Work management: remote, no fixed office
Jurisdiction Conflict
Spain — residency claim triggers
- 183+ days of presence within the calendar year
- Center of vital interests: family, habitual home
- Economic ties: recurring expenses, banking activity
Germany — residency claim triggers
- Wohnsitz: accommodation available for permanent use
- Regular presence, even without exceeding 183 days
- Administrative and social connections
Both countries may reasonably assert tax residency and seek taxation of worldwide income.
AI Analysis
Scenario A — Spain as primary residence
- Spain asserts full tax residency
- Germany may still require reporting or limited taxation
- Risk: duplicated filings and disputes over treaty application
Scenario B — Germany as primary residence
- Germany asserts residency based on Wohnsitz
- Spain may challenge the position using the “center of vital interests” test
- Risk: inconsistent qualification of the same income
Scenario C — Dual residency
- Tie-breaker rules under OECD Model / double tax treaty apply:
- Permanent home
- Center of vital interests
- Habitual abode
- Nationality
In practice, this scenario most often results in audits and extended correspondence with tax authorities.
Audit triggers — what authorities actually examine
- Lease agreements and utility bills in both countries
- Location of family and children’s education
- Health insurance and primary medical provider
- Concentration of banking activity and recurring expenses
- Where work is effectively organized and managed
Output of Richys AI analysis
- Tax residency risk assessment per jurisdiction
- Most likely audit scenario
- Map of reporting obligations
- Identification of factual contradictions increasing audit exposure
- Documentation checklist to support a consistent position
Expert Boundary
Involvement of a verified EU expert is required for:
- country-specific interpretation of the center of vital interests
- application of the Spain–Germany tax treaty to concrete facts
- selection of a defensible filing position
- preparation for potential tax authority inquiries
Case Conclusion
Living between Spain and Germany while working as an IT contractor creates a real risk of being treated as a tax resident in both countries — even without a formal relocation.
The problem is not choosing the “right” country, but the fact that small details matter: how your contracts are structured, where your expenses accumulate, which home is considered permanent, and how your personal and economic ties are documented.
Even minor differences in contracts, timelines, or supporting documents can shift the outcome. That is why situations like this cannot be resolved by intuition or generic rules.
A structured case analysis allows you to assess your exact facts, identify weak points, and understand what needs to be documented or clarified before decisions are made.
Start case analysisThis case is for illustration purposes only. Real outcomes depend on residence, income structure, documents and timing. For your specific situation, use structured case analysis with AI and verified EU experts.
Mathieu Fiscalis
AI assistant – Taxes & Cross-Border Tax