3.1. Taxpayers

A) BY PERSONAL OBLIGATION

Individuals who have their habitual residence in Spanish territory are subject to the tax by personal obligation, and the tax is required on all of their net assets regardless of where the assets are located or where the rights to which they are entitled can be exercised.

When a resident in Spanish territory takes up residence in another country, he or she may choose to continue paying personal taxes in Spain. The option must be exercised by filing the declaration for personal obligation in the first financial year when the person has ceased to be a resident on Spanish territory.

To determine habitual residence, the criteria established in the Personal Income Tax regulations will be followed.

Representatives and officials of the Spanish State abroad and of foreign Organizations, Institutions or States in Spain will be subject to the Wealth Tax by personal or real obligation, taking into account the same circumstances and conditions as those established for such taxpayers in the Personal Income Tax regulations.

B) BY REAL OBLIGATION

Natural persons who do not have their habitual residence in Spain and who are the owners of assets or rights that are located, can be exercised or must be fulfilled in Spanish territory are subject to real obligation.

These persons are required to file a declaration exclusively for these assets or rights.

Individuals who acquire their tax residence in Spain as a result of their move to Spanish territory and who choose to pay the Non-Resident Income Tax will also be subject to the real obligation, provided that the following conditions are met:

• That they have not been residents in Spain during the 10 years prior to their new move to Spanish territory.
• That the transfer to Spanish territory occurs as a result of an employment contract.
• That the work is actually carried out in Spain.
• That said work is carried out for a company or entity resident in Spain or for a permanent establishment located in Spain of an entity not resident in Spanish territory.
• That the income from work derived from said employment relationship is not exempt from taxation by the Non-Resident Income Tax.

From 1 January 2015, non-resident taxpayers residing in a Member State of the European Union or the European Economic Area will be entitled to the application of the regulations approved by the Autonomous Community where the highest value of the assets and rights they own and for which the tax is required is located, because they are located, can be exercised or must be fulfilled in Spanish territory.