General Tax Information - Spain
Updated: Oct 11
This guide provides a general outline of tax responsibilities for people resident in Spain. Age in Spain does not provide tax advice or related services and cannot offer more detailed information beyond this guide. Please consult a professional advisor/specialist on your specific taxation questions.
If you live less than 183 days in Spain, you will not be considered a tax resident in Spain and you won’t have to declare your worldwide income in Spain.
On the other hand, if you live in Spain more than 183 days in a 12-month period, you will be considered a tax resident and therefore have to declare your worldwide income and assets through the Spanish tax systems.
Bear in mind that there are tax allowances depending on age, disability or your family situation, as well as deductions for certain types of expenditure, depending on your circumstances. In case of doubt, we strongly recommend looking for a specialised service to help you with these processes.
NB. If you are resident in the Basque Country or Navarre, you must pay income tax under the regional tax system there, which is different from that of the other Spanish regions.
Registering with the Tax Authority
To declare your income you will need to register to pay tax in Spain with the Agencia Tributaria, the Spanish tax authority, whether you are a resident or a non-resident.
To do so, you need to hold a Foreigner’s Identity Card number (NIE), and fill out the Model 30 to register your obligation to pay Spanish tax as a resident or non-resident for the first time, or to change your details.
In case of doubt, we strongly recommend looking for specialised advice to help you in these processes. Find a list of English speaking lawyers in Spain here.
Paying your taxes
In order to pay your taxes, you need a Fiscal ID (same number as the NIE) and to advise of any change to your place of residence.
The tax year in Spain is from 1 January to 31 December. Income tax is collected through an annual tax return. The process is called the Declaración de la Renta - Renta 20XX that can be completed between 1 April and end 30 June of the following year (so for the tax year 2021 you make your annual tax declaration between April and June 2022.. This process can be done online (with a Digital Certificate or a Cl@ve code) or in person at a Tax Agency (Agencia Tributaria) office.
To do it in person you will need to ask for an appointment at the agency’s website or by calling their phone service. In case of doubt, we strongly recommend looking for a specialised service to help you with these processes.
Appealing against a Tax Assessment
You can appeal against a tax assessment at the following website. Make sure you read your tax assessment carefully to find out exactly to which department you should send the appeal and which procedures you need to follow.
Apart from income tax, the resident will have to declare assets purchased in Spain and worldwide and make payments, depending on the type of asset. You are required to declare all worldwide assets totalling more than 50,000€ on a separate return, that is due no later than end March, following the tax year during which they were acquired. This includes money, stocks and shares and property. Once declared, it is necessary to submit successive returns only if their value changes and/or other assets are acquired. You declare these assets using the Modelo 720 form.
Here are some of the most relevant taxes:
○ IBI (Real Estate or Property Tax): this an annual tax on the real estate or properties that are purchased in Spain and it is collected by the local Town Hall. It usually corresponds to the 0.4% to 1.3% of the value of the property,
defined by the local Town Hall.
○ Capital Gains Tax: any capital gain on activities located in Spain has a fixed tax for non-residents, which is higher than for residents and other EU citizens.
○ Inheritance tax (Impuesto de Sucesiones): this is a progressive tax paid by the individual who receives an inheritance from a relative or a friend, being a property, money, or any other kind of asset. This tax is collected by the
regions, and therefore the rates will vary depending on where the UK national lives.The Spanish Tax Agency is the institution in charge of administering tax payments as well as informing the citizens and residents of their obligations.
For specialised advice, we recommend that you contact a professional lawyer. HERE is a list of English speaking lawyers in Spain that may be able to help you.
If you have any further enquiries regarding tax advice, we recommend you to direct your questions to a professional tax lawyer.
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