Taxes in Spain

Taxes in Spain

Taxes for non-residents in Spain

There are a number of tax liabilities relating to all property owners in Spain. Filing tax returns is required even for those owners who have not yet become a resident in Spain.

  • The most important tax non-residents include:
  1. Municipal property tax (IBI) is calculated from the cadastral value of the property. May vary from 0.3% to 1,1% and shall be paid every year by the owner.
  2. Income tax for non-residents (IRNR) in Spain covers the profit from property rental, dividends, profits from the sale of shares, and in most cases the rate will go up to 24%. Shall be declared every 3 months.
  • Other required taxes:
  1. Tax on the use of the own real estate property. Shall be paid annually.
  2. The tax on profits from the sale of a real estate which is calculated from the difference between the acquisition cost and the price of sale of the real estate. Depending on the year of acquisition of property, the value can be adjusted using a diferent rate.
  3. Inheritance Tax  applies to all assets in excess of 700.000 euros. These include: the cadastral value of property, bank diposits, company shares. This tax has a regional character.

Taxes for the residents in Spain

If you are resident in Spain you will be liable to pay taxes on your income and assets and will need to file a Spanish tax return and other tax obligations whose payment are strictly controlled :

Income tax on individuals (IRPF) is determined by a large number of factors and is the prerogative of the activities of professionals versed in the intricacies of tax law.

  1. Income tax on individuals (IRPF) is determined by a large number of factors and is the prerogative of the activities of professionals versed in the intricacies of tax law.
  2. Municipal property tax (IBI)
  3. Property Tax (Impuesto sobre el patrimonio)
  4. Tax on inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones) applies to both individuals as well as companies. Depending on a number of indicators on the benefits of tax payment varies from 10 to 99%.
  • To avoid double taxation:

Is important to know if Spain has signed a  “Double taxation agreement” with your country in order to avoid any trouble with the treasury of both countries. The agreements may set down different rules for different types of income. They may also agree to exempt some income or gains from tax or allow a set-off of tax paid in one country against tax due in the other.

  1. Income tax
  2. Tax on profit from business activities
  3. Tax on Income from immovable property
  4. Tax on Income from real estate and financial capital
  5. Dividends

For any questions related to  taxation you can trust in Emigrante Consulting, to find an answer. In any case our specialists will determine the taxes  you shall declare and will optimize the final payment.


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