Spain follows a residence taxation model. If you are resident, Spain will levy personal taxation on worldwide incomes. If you are non-resident, Spain will levy personal taxation on incomes arising in Spain only.
Resident
Local income
Foreign income
Non-resident
Local income
Foreign income
Your resident status in Spain
You will be considered tax resident in Spain, if you satisfy either of the following criteria:
1. You are present in Spain on more than 183 days during the tax year.
2. Your centre of vital interests (personal, economic and social ties) are located in Spain during the tax year.
3. You are a Spanish national who relocated to a tax haven less than 5 years ago.
Spain’s highest income tax rate – global comparison
Special tax regime in Spain
Providing that you are considered an ‘expatriate’, your employment income will be subject to a flat 24% tax rate up to EUR 600,000 and your foreign income will be exempt from Spanish taxation. You can use the scheme for up to 6 years.
Other personal taxes in Spain
Spain levies the following personal taxes:
Asset tax
Tax on property and share sales
Death tax
Tax on assets passed to heirs
Wealth tax
Tax on total net worth
Social tax
Tax to contribute to state welfare
Double Taxation Agreements in Spain
Double taxation agreements can be used to 1) mitigate double taxation and 2) receive tax free income.
As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Spain has signed 88 double taxation agreements.
How does Spain compare globally?
Tax obligations in Spain
What is the tax year period?
The tax year starts on 1 January and ends on 31 December.
What is the deadline to file tax returns and settle tax liabilities?
The deadline to file your tax return is 31 March and the deadline to settle your tax liability is 31 March.
Do you need to make advance payments of tax?
You will not be required to make advance payments of tax towards future tax years.
1. You are present in Spain on more than 183 days during the tax year.
2. Your centre of vital interests (personal, economic and social ties) are located in Spain during the tax year.
3. You are a Spanish national who relocated to a tax haven less than 5 years ago.
The tax year starts on 1 January and ends on 31 December.
The deadline to file your tax return is 31 March and the deadline to settle your tax liability is 31 March.
You will not be required to make advance payments of tax towards future tax years.