Tax residents in Spain are classed as such if they live in Spain for more than 6 months a year, or their immediate family or primary economic interests are based in Spain. If you live in Spain for less than 183 days a year (around 6 months) then you won’t be considered a resident. However, even non-residents still have to pay tax on any properties or employment income in the country.
Somewhat confusingly, there are some state tax rules and some regional tax rules, meaning that tax regulations and rates can vary throughout different regions of Spain. Income-based taxes depend on your residency status, as tax residents must pay a percentage of their global earnings, while non-residents only have to pay tax on earnings within Spain.
The standard rates for non-resident tax in Spain range from 19-24% for income, capital gains, investment interest and dividends, and royalties, though tax can range from 8-40% for pensions. Many countries have signed double taxation treaties with Spain to avoid people being taxed on the same income in both countries. Though Spanish residents can benefit from personal allowances or deductions, there are none for non-residents, so the tax has to be paid in full.
There are also specific rules regarding rental income from letting out property you own in Spain. In many areas, you must register with the local authority and obtain a licence before renting out your property, in line with regional housing regulations. While the regular tax year runs from 1st January to 1st December in Spain, rental income tax must be paid quarterly, and it’s the property owner’s responsibility to manage taxes. This also means ensuring that tax balances are paid before renting, selling, or giving property to family.
Even if you don’t rent out your second home in Spain, all property owners must pay a form of annual council tax to the local authority, known as IBI. This tax rate is based on the value of the property, with rates varying from 0.4-1.3% across different municipalities. If you decide to sell the property, you’ll still have to pay a property transfer tax, known as ITP. Again, it’s your responsibility as the property owner to register with the appropriate authorities and make sure that your non-resident tax in Spain is paid on time – it’s possible to appoint a legal representative to handle these matters for you if you are unable to manage them yourself.
Spanish Taxes For Non-Residents
At Manzanares Lawyers, we understand that this can be difficult if you aren’t in the country, so relying on specialist solicitors like us to be your representatives and handle your tax affairs could save you time, money, and worry. We can help you to submit your Spanish tax declarations and pay on time to avoid unwanted fines and debt.
Spanish taxes for non-residents can quickly become very complicated – especially if you aren’t a native. Manzanares Lawyers can give you clarity on exactly what you need to pay and when, applying our years of expertise in this area to ensure that you know exactly where you stand regarding Spanish property tax for non-residents.
We can assess your tax situation and give you an overview of your Spanish tax liabilities, making sure that you’re never in the difficult position of being unable to afford your tax payments, or missing them altogether and risking fines for non-payment. We’re here to make you feel more comfortable about your non-resident tax in Spain, with our friendly team of professional lawyers glad to offer assistance whenever you need us.
Please note that while we offer a variety of legal services throughout the whole of Spain, including conveyancing, fiscal advice is only offered in the region of Andalucía. We are unfortunately unable to provide tax advice outside of this area.
Get in touch today
If you could benefit from the expert guidance of Manzanares Lawyers on non-resident tax in Spain, then be sure to get in touch with our team today. Our highly qualified teams are able to communicate in several different languages – including English, German, French, and Portuguese – so please don’t feel like a language barrier will hinder your understanding of our Spanish non-resident tax advice.
With over 20 years of experience, there isn’t a tax enquiry our company hasn’t dealt with before, so don’t hesitate to reach out if you need clarification and instructions regarding your tax payments. Please give our offices a call on +34 952 59 50 42 (Alhaurin) or +34 952 82 41 12 (Marbella) to get started untangling your tax issues today. You can also fill out our online form or email us at email@example.com with any detailed enquiries you may have.