Spain property challenges: Tax residency rules and squatting risks

Spain continues to present complex challenges for foreign property owners, particularly regarding tax residency and illegal property occupation.

Tax residency in Spain is not determined solely by the 183-day rule within a calendar year. Authorities may classify an individual as a resident if their center of economic interests, such as business management or primary income sources, is located in the country. Additionally, a 'family presumption' applies if a spouse and minor children reside in Spain, even if the owner spends less than half the year there.

Regarding property security, the issue of 'okupas'—individuals who illegally occupy vacant or abandoned properties—persists despite recent legislative changes aimed at speeding up the recovery of homes. In Tenerife, police recently detained two men attempting to break into empty apartments in Valle San Lorenzo using hammers and chisels.