The tax residency rules for Spain are quite clear. According to the tax authorities (Agencia Tributaria) if you are a permanent resident or if you spend more than 183 days of the year in Spain you will usually need to file a tax return although there are a few exceptions (See list below).
Does everyone in Spain have to do a tax return?
Everyone has to file a Spanish tax return in the first year of tax residency. After the first year, you don’t have to file a Spanish tax return if your income from all sources is less than €8,000 and you have less than €1,600 of bank interest or investment income.
Who needs to file a tax return in Spain?
In general, a PIT return should be filed by a person resident in Spain whose gross employment income exceeds EUR 22,000 (for joint and separate returns) during the calendar year or EUR 14,000 for taxpayers who obtain employment income from more than one payer if the amounts obtained by the second and subsequent payers …
Do I need to file a Spanish tax return?
For expatriates, Spanish tax returns are necessary if you are considered a permanent resident of Spain (article 9 of IRPF). … If you reside in Spanish territory for 183 days or longer in a year. If your main economic activities/interests are in Spanish territory.
How much can you earn in Spain before paying tax?
Tax deductions are available to residents of Spain. The basic personal allowance is €5,550 for those under the age of 65, €6,700 for those over 65, and €8,100 for those over 75. You can claim an additional allowance of €2,400 if you have children under the age of 25 living with you.
How can I avoid tax in Spain?
Apply for the Beckham Law
- The Beckham Law is a special tax regime that is applied to foreigners who come to Spain due to work reasons. …
- Basically that you can avoid paying a progressive income tax that can rise up to 45%, and pay a flat fee of 24% instead.
- So, as you can see, this creates important tax savings for you.
Do I have to pay tax on my UK state pension in Spain?
Spanish residents with UK state pensions or occupational pension income are taxable in Spain and not in the UK, under the UK-Spain Double Taxation Treaty. … Contributions from employers to personal pensions may not benefit in their entirety from the annuity allowance.
How far can taxman go back in Spain?
The Spanish tax office can go back 4 tax years which in real terms is 5 years and 3 months from the end of a tax year.
What is Renta tax Spain?
The annual income tax return to file for residents is known as Renta, and the tax is Impuesto sobre la Renta de las Personas Fisicas (IRPF). … Income tax returns for the year 2021 must be filed by the 30th June 2022. Returns can be filed online from early-mid April onwards.
Can I live in Spain and pay tax in UK?
The UK has a double taxation agreement with Spain to ensure you do not pay tax on the same income in both countries. Ask the relevant tax authority your questions about double taxation relief. You should get professional advice on paying tax in Spain.
How much is non-residents tax in Spain?
A non-resident is always taxed at a fixed rate of 24% on any income arising in Spain. This 24% income tax should not be confused with the 21% capital gains tax on profits from the sale of assets, such as a house or shares in a company.
Does Spain tax foreign income?
Residents in Spain are generally subject to PIT on their worldwide income, regardless of where it is generated, which is taxed, following statutory reductions, at progressive rates. Non-residents are subject to NRIT only on their Spanish-source income.
What is Suma tax in Spain?
This tax applies to both non-residents and residents and it is a yearly direct tax based on the cadastral value (rateable value) of the property. If in any given year you own a property in Spain on 1st January, you will be liable to pay this tax, which is levied by the Town Hall. …
How much is self employed tax in Spain?
Tax for self-employed sole traders and freelancers in Spain
As such it varies between 19–47%, according to income earned. Bear in mind that Spain’s regions levy taxes differently, so rates vary across the country.
How long can I live in Spain without paying tax?
If you spend more than 183 days per year in Spain (6 months), you will be regarded as a tax resident. On the other hand, only living from 1 to 182 days in the country will imply you are a non-resident. *Bear in mind that the years don’t necessarily have to be consecutive.
Is Spain a tax haven?
Officially, Spain is a country with a high tax burden, like Germany, France, and Italy. However, Spain has always been an unofficial tax haven. It’s not hard to find islands where there are foreigners living without paying a cent in taxes (direct taxes, of course; they still have to pay VAT and indirect taxes).