Tax Advice in Spain
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We’ll fully understand your situation and tax obligations in Spain, to provide tailored planning and advice
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We’ll manage paperwork by filling out tax forms, and presenting documents to the AEAT (Spanish Tax Agency) on time
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FAQs About Taxes in Spain
What does it mean to be a tax resident in Spain? How is this different from being a non-resident?
To figure out what taxes you need to pay, the first thing to know is whether you’re a tax resident or not.
Here’s an easy rule: if you spend more than 183 days in Spain each year, you’re a tax resident. Being a resident means you have to follow different tax rules and pay different amounts.
For example, if you’re not a tax resident, you’ll pay a non-resident tax that residents don’t have to pay. There are also differences in what income you’re taxed on. Residents have to declare all their income worldwide, while non-residents only pay tax on what they earn in Spain.
What taxes do companies pay in Spain?
For any company, there are three main taxes to take care of.
First up is the corporate tax (impuesto de sociedades). It’s a fixed rate of 25% applied to the company’s profits.
Then there’s the property transfer tax. This is a variable tax that changes based on different events in the company’s life, like mergers or acquisitions.
Lastly, there’s VAT. If a company sells goods or services, it has to add on 21% to the selling price. Customers pay this, but the company collects it and then hands it over to the tax authorities in Spain.
Which taxes should I pay in Spain as an expat?
If you’re a tax resident in Spain, there are four main taxes you’ll need to deal with as an individual:
First, there’s the income tax or IRPF. This tax applies to all the money you earn worldwide. The exact rate varies depending on where you live in Spain. It usually starts at around 19% and can go up to 48%, depending on how much you make.
Next up is the wealth tax. If you own property worth more than €700,000, you’ll have to pay a tax ranging from 0.2% to 2.5% of its value.
If you make a profit from selling property or other assets like company shares, you’ll owe capital gains tax.
And finally, there’s the inheritance tax, which is applied when you inherit any kind of asset.
How does the Spanish tax year work? When does it start and end?
The Spanish tax year coincides with the calendar year. This means that it starts on the 1st of January and finishes on the 31st of December.
Income tax return must be filed within May to June of the previous year.
Do I need to file for income tax return?
You probably know about income tax return – it’s the one where you have to declare your earnings every year.
But do you really have to do it? Well, it depends. If you’re a tax resident and you make over €22,000 a year, then yes, you should file a return. If you’re not a tax resident, you don’t have to worry about this obligation.
What is the Beckham Law?
The Beckham Law in Spain offers residents a flat 24% tax rate on their first €600,000 of income, bypassing the usual progressive tax rates that can reach 48%.
Do you have any questions about your situation?
Our specialized tax advisors and lawyers are more than ready to help you out.