Hello everybody. There is no doubt that taxes in Spain for expatriates is always a subject about which there are many doubts. We are going to try to present in a simple way a summary of the main taxes for expatriates in Spain.
3 Basic aspects of taxation in Spain
These 3 points should be taken into account before listing taxes in Spain for expatriates.
1- The tax period in Spain corresponds to a calendar year, i.e. it runs from January to December. In this respect, we differ greatly from other tax periods both in Europe and worldwide,
2- All taxes payable are due between 1 May and 30 June of the following year.
3- In order to pay taxes, it is essential to be in possession of a NIE number. This is really the only identification you need to make payments.
Distinction between Tax Resident and Non-Resident in Spain
This differentiation between Tax Resident and Non-ResidentThis is only for tax purposes and of course has no direct or indirect relationship whatsoever with being in possession of a Residence Permit, which is required to live legally in Spain.
How can I find out if I am a tax resident in Spain?
- If you live in Spain for more than 183 days per calendar year. You can also add several periods within the year.
- If you have economic interests here, either because you have a professional activity in Spain, or if you work for a company or if you are self-employed (freelance).
- If your spouse and/or children live in our country.
What are the taxes in Spain for expatriates?
We are going to list the taxes that every expatriate is obliged to pay in Spain if this is the result of his or her activity.
1- Income tax
If you are clear that you are a Spanish Tax Resident, you must pay Income Tax on your worldwide income and gains.
2- Non-Resident Tax
This particular type of tax is payable by Non-Residents who rent out their property in Spain or have any other type of asset of any nature that is giving them some income of money.
3- Wealth tax in Spain
If you have a property in Spain, you have to pay Wealth Tax in Spain. In this case it does not matter whether you are a tax resident or not.
4- Inheritance tax (Impuesto de Sucesiones)
If the property you are inheriting or bequeathing is in Spain, Spanish inheritance tax is always payable, regardless of which country the beneficiary is in.
5- Income Tax (Income from Capital)
If you are considered Resident in Spain, you will have no choice but to pay between 19% and 23% in taxes due on the profit from the sale of, for example, a property or shares.
6- Taxes on the purchase of a property. Property transfer tax (Impuesto de Transmisiones).
- Property Transfer Tax /Transfer Tax: This is a progressive tax that applies to second-hand properties.
- VAT: For all those who buy a property directly from a developer.
We can calculate taxes in Spain for expatriates sooner
At Meridional we offer you a calculation service so that you can know your tax situation beforehand. We can advise you on what taxes you have to pay and in what exact percentage, so that you only pay the minimum tax necessary.
How can you access this calculation beforehand?
It's very simple: send us an email to: welcome@meridionalteam.com
In this email you must provide us with the following information:
1. Whether you are a Tax Resident or not it is
2. What is your income in Spain?
3. What is your economic activity?
4. If you have any property or if you plan to sell your property
We will manage for you the best way to optimise and structure your taxes in Spain.
Don't miss this opportunity to find out in advance what taxes you have to pay and how much it will cost you!
By now you know a little better what are all the tax rates you have to pay in Spain as an expatriate. In a very general way, you also know that there are appreciable tax differences between being a tax resident and being a non-resident.
But more importantly, there are many ways to adjust the amount you have to pay, which is why we advise you to rely on our tax experts.
Meridional will be pleased to help you with your taxes in Spain.