Spanish taxation

Filed under : Tax

Whether you live in Spain full time or part time you may be liable to pay tax in Spain. The primary test for Spanish tax residency is spending 183 days or more living in Spain per calendar year.

Even if you don´t spend 183 days in Spain but you own property you need to make an annual tax declaration as a non-tax resident property owner.

During the last year a number of tax authority demands have been issued which are based on incorrect or missing information and these demands need to be challenged or appealed.

Spain has complex tax rules and professional advisers can ensure that personal, company and property taxes are correctly calculated.

Spanish Tax Residents are subject to tax on their worldwide income, this is regardless of where that income is generated.  If you are tax resident and also have income from outside of Spain your adviser can ensure that you can benefit from available reductions and not be subject to any Double Taxation.

Whilst the primary test for tax residency is 183 days it is not the only test. For example, the tax authorities can consider you to be tax resident if your family and underage dependent children live permanently in Spain even if you are working outside of Spain for a good part of the year. 

If you are tax resident in Spain and have assets outside of Spain with a value of more than 50.000€ you have the obligation to complete a Modelo 720. Subsequent submissions of the Modelo 720 may be required where there is a variation in any of these assets. STOP PRESS – The European Court has published a ruling today – 27th January 2022 – which will affect EU citizens obligations to make this declaration. We will publish more information shortly but at this stage it is still necessary to complete the Modelo 720.

Spanish Property Ownership taxes

Individuals who own property in Spain but are not resident have to make an annual declaration. This is a form of income tax based on the rateable (catastral) value of your property. If you rent out the property this return should be completed on a quarterly basis.

Your particular circumstances are important and we can provide tailored advice. When registering as a tax client you will receive reminders and helpful updates. 

For more information or a Confidential consultation please call + 34 952 527014 or email to [email protected]

For the Canary Islands please call our Tenerife office on + 34 922 719520 or email on [email protected]