DoubleTaxationPakistan – Spain tax treaty: residence, 183 days, rates
Convention between the Islamic Republic of Pakistan and the Kingdom of Spain for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at Madrid on 2 June 2010)
- Signed: 02/06/2010
- In force since: 18/05/2011
- Official text
If both countries treat you as resident
- Dual-resident individual: (a) resident only of the State in which he has a permanent home available to him; if he has one in both States — the State with which his personal and economic relations are closer (centre of vital interests); (b) if that State cannot be determined, or if he has not a permanent home available to him in either State — the State in which he has an habitual abode; (c) habitual abode in both States or in neither — the State of which he is a national; (d) national of both or of neither — the competent authorities settle the question by mutual agreement. Art. 4(2) Pakistan–Spain Convention (2010)
- MLI in force for Pakistan from 1 April 2021 and for Spain from 1 January 2022; for Spain effective for withholding taxes from 1 January 2023 and for other taxes for periods beginning on or after that date; for Pakistan for withholding taxes from the fiscal year beginning on or after 1 July 2022 and for other taxes for periods beginning on or after 1 January 2023. No MLI change to Art. 4(2), Art. 15 or Art. 22. The authentic texts prevail. Synthesised text of the MLI and the Spain–Pakistan Convention (Ministerio de Hacienda)
- Notifies under s. 107 the Convention signed on 2 June 2010; it enters into force with effect from 18 May 2011; withholding taxes on amounts paid or credited to non-residents from that date. FBR S.R.O. 996(I)/2011 of 26 October 2011 (notification of the Pakistan–Spain Convention)
- If you have no permanent home available in either State, the treaty goes straight to habitual abode (the centre of vital interests step applies only where there is a home in both States). Art. 4(2)(b) Pakistan–Spain Convention (2010)
- Centre of vital interests: the State with which your personal and economic relations are closer. Art. 4(2)(a) Pakistan–Spain Convention (2010)
- Habitual abode in both States or in neither — resident of the State of which you are a national; national of both or of neither — the competent authorities settle the question by mutual agreement. Art. 4(2)(c), (d) Pakistan–Spain Convention (2010)
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in any 12-month period; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country only taxes profits of a permanent establishment (fixed base) there. | Art. 7 |
| Pension | Only the country of residence. | Art. 18 |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 10(2)(c) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2) |
| Royalties (copyright, licences) | Source country: at most 7.5%; the country of residence relieves double taxation. | Art. 12(2) |
| Technical, consulting, management services | Source country: at most 10%; the country of residence relieves double taxation. | Art. 13(2)–(3) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property, including shares: only the country of residence. | Art. 14 |
| Other income | Only the country of residence. | Art. 21(1) |
How double taxation is relieved
- Spain: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(1)
- Pakistan: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(2)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.