If so many foreigners choose it as their go-to obtain when obtaining Spanish residency, it is not only because of its fast application or simple requirements, it is also because of its tax advantages.
In this article, we will explore in great detail which are the taxes you must pay with a golden visa in Spain, including the complete list of tax benefits this permit grants you (which can actually help you save huge sums of money). After reading this post you will finally understand not only the taxes you will face and when to file them but also why obtaining this visa is so beneficial from a tax perspective.
Tax residency status with the golden visa
Before moving to the exact rates and complete list of tax advantages of the investor visa, we must first understand which tax status you will acquire as the holder of this visa.
This is crucial, as it will completely determine which taxes you must pay and at what rates.
As you may already know, any foreigner in Spain who spends more than 183 days per year in the country is considered a tax resident.
Being considered a resident for tax purposes is a separate thing from your immigration residency.
But they are linked. All residency permits in Spain require you to spend a minimum of 6 months (183 days) in the country if you wish to renew. All but one: the golden visa.
That is, for the other permits, you will end up becoming a tax resident, because the need to stay those 183 days in the country to renew your residency will inevitably turn you into one.
But the golden visa is different in the sense that it is the only permit that does NOT require you to stay for any minimum period of time in the country to renew. It just requires you to keep your investment in Spain, and to visit the country at least once per year. But for no minimum period of time.
This helps explain why this visa is really advantageous. Because not only are its requirements simple and the application process fast and straightforward but also allows you to avoid paying resident taxes (which, as we will see, is really beneficial).
Hence, when analyzing what taxes you will face as a golden visa holder, we will find 2 different scenarios:
- Those with a golden visa who spend less than 183 days per year, hence non-residents for tax purposes
- Those who spend over 6 months, hence tax residents
In the next section we will explore these differences in greater detail and understand what they actually entail.
Taxes in Spain with a golden visa
Let’s then explore the exact taxes and rates you must pay with your golden visa in the Spanish territory. As we said, we must make a distinction depending on your tax residency status:
Golden visa taxes for residents
If you have obtained your investor permit and stay for more than 183 days per year in Spain, you will be considered a tax resident.
First of all, this means you are liable to pay income tax for all income you generate worldwide. This includes income generated both in Spain and in any other country.
And you will pay income tax through a progressive rate that goes from 17% up to 50% (this upper limit differs according to the region where you are living, as some have it lower). Here you can find all the details about how income tax works in Spain and some possible deductions.
When will you pay for it? Yearly, you will have to file your income tax declaration, from April to June.
But that is not all.
Apart from the income tax, there are 2 other taxes to consider:
- Capital gains tax, in case you generate any type of profit after selling assets (like company shares), which moves between 19% and 23%
- Wealth tax, ranging from 0,2 and 2,5% and applied to highly valued assets. It has important exemptions that vary according to your region. For example, in Catalonia any amount below €500,000 is exempt.
But what happens if I have already paid taxes in the country where I received my income originally? Do I pay taxes twice in Spain?
Thanks to double treaty conventions, you shouldn’t. You would just pay taxes once, and get a deduction in Spain. Nevertheless, this is quite a complex topic, and if you want to learn more, we suggest you get in touch with a specialized tax lawyer (at Balcells Group we can help you out), or read this guide on double tax treaties.
Golden visa taxes for non-residents
If you obtained your golden visa but do not spend 6 months per year in the country, great news. As you will be considered a non-resident for tax purposes, you will enjoy great tax advantages that will help you save money.
In this case, you will face 2 main taxes: the non-resident income tax and the wealth tax.
Non-resident income tax
First of all, instead of paying income tax, you will be liable to pay non-resident income tax. And even better, thanks to double treaty conventions, it is likely that you will just need to pay this tax when it comes to your property.
The exact rates will depend on whether you are renting the property or you simply use it when you come to Spain:
- If you are renting the property, you will quarterly pay 24% of the rental income you have received
- If you just use the property for personal use, then you will yearly pay a rate obtained by multiplying 24% by 1,1% or 2% on the cadastral value of the property (depending on when the last revision was made). If you are not sure, you can check here what exactly constitutes the cadastral value.
In case the purchase price of the property was above €700,000, you will have to pay wealth tax. Bear in mind that this limit of 700k may differ according to the specific region in Spain where the property is located.
The exact rates that moves from 0,2% to 2,5% depending on the house’s value, and you could deduce any mortgage in case you have requested it for a final purchase.
As you can see, being the holder of a golden visa offers many tax advantages. Nevertheless, and considering this is quite a complex process, you will not be able to harness all these advantages unless you rely on the help of an expert tax advisor. At Balcells Group we will carefully analyze your situation to finally define which are the exact taxes you will have to face in the country and how to optimize them. Get in touch today through the following form and solve all your doubts: