The payers of Non Resident Income Tax (I.R.N.R.) who:

• Are natural persons
• Accredit being resident in another member state of the E.U.
• Accredit that at least 75 per 100 of their total income in the tax period is comprised of the sum of income from work and from the financial activities obtained during it in the territory of Spain, when this income is effectively subject to taxation under I.R.N.R.

May apply for application of this optional regime, the purpose of which is that effective taxation in Spain is calculated according to the rules of Personal Income Tax (I.R.P.F.), although without losing their status as taxpayers under the I.R.N.R. regime.

When the application is made and fulfillment of the conditions leading to the application accredited, the Tax Administration, considering the total income obtained by the taxpayer during the tax period and his personal and family circumstances, and according to the settlement scheme for the I.R.P.F., shall determine the average rate of the relevant tax.

The resulting average tax rate shall be applied to the settlement part of the base for the income obtained in Spanish territory.

If the above result provides a lower sum than the amounts paid by the non resident taxpayer during the tax period for I.R.N.R. on income obtained in Spanish territory, the surplus must be reimbursed.