Taxes in Spain

Since 1992 Feod Group has been providing a wide range of immigration, business and legal services in Spain and other EU countries
The company includes international lawyers and Spanish lawyers

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✓ Tax planning and tax optimization
✓ Comparison of taxation by jurisdictions of interest (EU, USА and UK)
✓ Corporate and personal taxes in Spain: income tax, capital gains, property taxes

Spanish tax resident

Every foreigner who plans to move to Spain for permanent residence or wants to buy property in Spain asks himself in which country and how to pay taxes?

It is important to distinguish between two resident statuses: tax residency and immigration (resident for immigration).

The status of an immigration resident gives the right to reside in Spain (in other words, it is obtaining a residence permit or permanent residence).

At the same time, having a residence permit in Spain does not automatically make you a tax resident of Spain.

Under Spanish tax law, an individual is considered tax resident in Spain if they meet one of the following conditions:
– Actual stay in the country for a certain amount of time.A Spanish tax resident must reside more than 183 days in Spain during a calendar year. These days are not necessarily counted consecutively. Therefore, you need to carefully monitor your days in Spain.
– Having a business or place of work in Spain
– If your spouse or children permanently reside in Spain and are financially dependent on you.

What is the difference between being a tax resident and a non-resident in Spain?

⇒ By becoming a tax resident in Spain, you will pay tax on all your income from sources around the world.
⇒ Non-residents will only be taxed on income derived from Spanish sources.

Taxes in Spain

Please note that all the districts in Spain are autonomous in their legislation, which may differ in each region, especially with regard to taxation and tax rates.

Each of Spain’s 17 autonomous regions determines its own tax rates and obligations.

Therefore, the exact amount of taxes directly depends on where you live in Spain.

Taxes in Spain for non-resident foreigners

For example, if you have real estate in Spain and you are not considered a tax resident, this does not mean that you do not need to pay taxes.

A foreigner who is not a tax resident in Spain still pays taxes in Spain, but only on income received in this country.

Special application deadlines apply to non-residents, and as a general rule, non-residents must file income tax returns and pay taxes quarterly (depending on region).

Income tax (non-residents’ income tax – NRIT) received in Spain for non-residents is levied at a flat rate of 24%.
For residents of other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19%.
A non-resident – the owner of Spanish real estate worth more than 700,000 euros is required to pay wealth tax according to the progressive school from 0.2% to 3.5%.
The annual property tax in Spain is paid by both residents and non-residents of Spain. The tax ranges from 0.3% to 1.1% of the cadastral value of the property.
Dividends – 19%
Royalties – 24%.
Non-residents are also required to pay Spanish capital gains tax on profits received from the sale of any Spanish property.

Taxes in Spain for residents

If you are a tax resident in Spain, you are subject to taxation on all of your worldwide income, regardless of where they are based.

Basic taxes for residents of Spain

• Income tax in Spain (personal income tax) is calculated on a progressive scale from 19% to 47%.

As a Spanish resident, you must file a Spanish tax return on your worldwide income if your annual income from work is over €22,000.

Spanish resident taxpayers receive certain tax credits depending on the age, disability and number of children you live with and the location of the home.

– up to 12,450 euros – 19%

– from 12,451 to 20,200 euros – 24%

– from 20,201 to 35,200 euros – 30%

– from 35,201 to 60,000 euros – 37%

– from 60,000 to 300,000 euros – 45%

– for incomes over 300,000 euros – 47%

Spanish capital gains tax (also income from savings)

– up to 6000 euros – 19%

– from 6,000 to 50,000 euros – 21%

– from 50,000 to 200,000 euros – 23%

– income over 200,000 euros – 26%

Social payments

General remuneration rate: 6.35% for employees (depending on the type of contract) and 29.90% for employers + variable rates for accidents at work.

Gift and Inheritance Tax

The tax liability will depend on many factors (the relationship between the taxpayer and the donor, the degree of relationship, etc.).

General tax rate from 7.65% to 34%.

Tax on pensions – at a progressive rate from 8% to 40%

Payments and fees when buying a property

1. Primary Real Estate Market – VAT and Stamp Duty
– VAT (IVA) is 10% of the purchase price of residential property (houses, villas, apartments, etc.) and 21% in the case of commercial property and land.
– VAT on new homes in the Canaries is known as IGIC (Impuesto General Indirecto Canario) and is 4.5%.
– The stamp duty (known as AJD) is between 0.75% and 1.5%, depending on the region of Spain.

2. Resale property – property transfer tax (Impuesto sobre Transmisiones Patrimoniales – ITP)
The real estate transfer tax rate is determined by the autonomous regions, which apply a general or their own rate.
The general national property transfer tax rule is 7%, regionally ranging from 6% to 11%.
For example: Madrid – 6%
Murcia – 7%
Catalonia (including Barcelona, Tarragona, Costa Brava) – 10%
Valencia Community (includes Costa Blanca, Torrevieja, Alicante, Valencia) – 10%

As already indicated above, the tax system in Spain is quite complex and differs depending on the region in which you live or in which you bought property.

✓ Therefore, seek qualified advice from a Feod Group tax consultant who will provide you with all the necessary information about the tax system and the taxes in Spain that you will have to pay.

Feod Group Services

Comparison of taxation in different EU countries. Effective international tax planning and tax optimization.
🔹 Opening a personal and corporate bank account in Spain
🔹 Support in obtaining a residence permit in Spain for financially independent foreigners; Residence permit in Spain when buying real estate and for investment (Golden Visa), Business immigration to Spain
Obtaining a Spanish identification and tax number – NIE (Número de Identidat de Extranjero).
🔹 Legal support during the registration of companies in Spain
🔹 Search for property for long-term rent or purchase of housing in Spain according to your request: apartments, villas, townhouses
🔹 Enrollment of children in schools, colleges and universities in Spain and EU countries

Taxes in Spain - FAQ

How many taxes do you have to pay in Spain?

Taxes in Spain depend on your tax residency status, individual circumstances and the basis for the exemption.

As a tax resident in Spain, you are taxed on your worldwide income.

Non-tax residents are only taxed in Spain on their Spanish-sourced income.

What does tax resident in Spain mean?

Tax resident in Spain means that you are legally subject to taxation in Spain based on your domicile, permanent residence or place of registration for a legal entity.

In other words, the tax presidency determines in which country you will pay taxes.

What is the corporate tax in Spain?

The general corporate tax rate in Spain is 25%

What is the income tax in Spain in 2022?

Income tax in Spain on a progressive scale from 19% to 47%.

Why clients choose Feod Group

Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.

The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.

Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.

We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.

Article author

Anastasia Taran Head of Corporate Services
Ukraine

In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...