You are generally considered a resident for tax purposes if you live in Spain for more than 183 days per year or have your main economic interests in the country.
Residents are required to declare:
• Worldwide income
• Property, investments, and assets in Spain and abroad
• Capital gains, dividends, and rental income
Non-residents only pay taxes on income and assets located in Spain. This includes:
• Rental income from Spanish property
• Capital gains from the sale of Spanish property
• Spanish-sourced pensions or investments
Understanding your status is crucial because tax rates, deductions, and obligations differ significantly.
1. Income Tax (IRPF for residents / IRNR for non-residents)
• Residents (IRPF): Taxed progressively on worldwide income (up to ~47%).
• Non-Residents (IRNR): Flat tax rate on Spanish income (typically 19–24%).
2. Property Taxes
• IBI (Impuesto sobre Bienes Inmuebles): Annual local property tax.
• Plusvalía Municipal: Tax on increase in land value when selling property.
• Wealth Tax (Impuesto sobre el Patrimonio): Applies to residents and sometimes non-residents with high-value assets.
3. Capital Gains Tax
• Applies to gains from the sale of property or investments in Spain.
• Rates differ for residents and non-residents.
4. Inheritance & Gift Tax
• Applicable if you receive property, assets, or money in Spain.
• Rates depend on region and relationship to the donor.
5. VAT / Transfer Tax on Property
• New properties: Subject to VAT (IVA) ~10%
• Resale properties: Subject to Transfer Tax (ITP), varies by region (typically 7–10%).
Filing taxes in Spain involves several steps:
1. Collect all documentation: income statements, property details, bank statements, etc.
2. Determine residency status: resident or non-resident.
3. Calculate taxable income: including deductions and allowances.
4. Submit your declaration to the Spanish tax authorities (Agencia Tributaria) within the deadlines.
For most people, working with a local accountant or tax advisor is essential. They can help optimize deductions, avoid penalties, and ensure compliance.
While we are not accountants ourselves, we work with trusted accounting partners who:
• Advise on tax obligations for residents and non-residents
• Handle Spanish tax returns (IRPF/IRNR) and declarations
• Support property-related taxes (IBI, Plusvalía, Transfer Tax)
• Provide guidance on inheritance, gift, and wealth tax
We coordinate with these accountants to ensure that your real estate transactions, income, and property ownership are fully compliant with Spanish tax law, making the process smooth and stress-free.
• Expertise in Spanish tax law for residents and non-residents
• Guidance in your own language
• Optimized filings to avoid overpayment
• Full support for property purchases, sales, and rental income
• Assistance with all tax deadlines and communications with authorities
Whether you live in Spain or own property as a non-resident, filing your taxes correctly is essential.
Our trusted accountants can guide you through the process, making sure everything is accurate, optimized, and on time.
Contact us today to arrange professional assistance with your Spanish taxes and tax returns, tailored to your situation in Costa del Sol, Málaga, Marbella, or anywhere in Spain.
