Am I a Spanish tax resident?
If you live in Spain for more than 183 days a year then you are classified as a tax resident here. Note that the number of days does not have to be consecutive, it is the total days stayed during the Spanish tax year, which is the 1st of January to the 31st of December.
If you also potentially hold tax residence in another country then you will be considered resident in Spain for tax purposes if your primary interests are in Spain, such as your professional and business activities, or if your spouse and/or children live in Spain.
How do I register for tax in Spain?
You are required to register as a taxpayer with the Agencia Tributaria (Spanish Tax Authority), this is required in order to file your very first resident tax return. To do this, you must have an NIE number. If you have a full residence card (TIE) then normally you will be registered for tax automatically and you do not need to take any further action. If you just have an NIE document then you can register for tax either online if possible in your case, or at the Tax Office in person by presenting the form Modelo 030. This form is also used whenever you need to inform Hacienda of any changes in your personal details.
Resident Tax Returns
Below is a summary of the forms you may need to file with the tax office as a Spanish resident:
Annual Income Tax Return – Modelo 100
Due by 30th june, or 25th June to pay tax by direct debit to your bank account
Personal income tax is Spain is known as Impuesto sobre la Renta de Personas Fisicas or IRPF. An annual declaration must be filed via the Form 100, also referred to as ‘La Renta’ to declare your Spanish and worldwide income. This means that any income you make from foreign assets, businesses, or savings has to be reported to the Spanish Tax Authorities.
The filing deadline to submit this form is at the end of June, and the online filing system usually opens at the beginning of April. It’s also worth noting that the taxpayer’s personal digital certificate is often required to file this return, because over the last couple of years the Tax Office’s new system has been having problems recognising the details on the taxpayer’s identification documents in order to register for online filing.
The tax rates are progressive ranging from 19% – 45%. More info can be found here.
To ensure that people do not pay double tax on their income, Spain has dual tax agreements with many countries. If you have already paid tax on the income earned in a country, depending on the type of income this amounts may be exempt from tax in Spain, or, the tax paid is deducted from the tax to pay in Spain on the same income.
Wealth tax return, statement of worldwide assets – modelo 714
DUE BY 30TH JUNE, OR 25TH JUNE TO PAY TAX BY DIRECT DEBIT TO YOUR BANK ACCOUNT
Residents and non-residents of Spain who own any Spanish and foreign assets that exceed a certain net value are obliged to file this return. The tax is applied over an individual’s assets/acquired wealth, not on their income earned from the assets.
This specific tax varies per region or Comunidad Autónoma. Typically the tax applies to anyone who has acquired assets that have a net value of over 700,000 euros, though in some regions it is lower such as Catalonia and Valencia. In Madrid, there is currently an exemption from Wealth Tax.
If you think that Wealth Tax may apply to you this year, please let us know and we will send you further details. The filing deadlines are the same as for the Renta.
The scale varies from one region to the next – for instance in Andalusia it’s: 0.2% – 3.5%.
Beckham Law – A tax regime for expats – Modelo 151
Due by 25th June
The “Beckham Law” is a special regime that can be used by expats to reduce their taxes in Spain. Under this regime, individuals will be considered as a non-resident for tax purposes and will be liable for tax only on the income earned in Spain, not worldwide. They can also benefit from a lower tax rate of 24% (up to 600,000 Euros of annual salary) instead of the standard resident’s tax rate, which ranges between 19-45%.
To opt for this regime, you will need to be employed by a Spanish company and you must not have resided in Spain during the last 10 years. Generally speaking, this regime is beneficial for those earning an annual salary above around 60,000 Euros.
Declaration of Foreign Assets – Modelo 720
Due by 31st March
Tax residents are also obliged to report any foreign assets within the categories of deposits, investments and life assurance and property where the total amount is at least 50,000 euros. Although submission of this form is for informative purposes only, and not tax collection, Hacienda can charge extortionate fines if you fail to submit, file late, or declare incorrect information.
Find out more about the Modelo 720 by clicking here.
If you’re self-employed, registered as an autónomo in Spain, your income tax will be paid on a quarterly basis by submitting a Modelo 130 However, you still need to include this income on your Modelo 100, which will calculate whether you have paid enough tax throughout the year.
Read more on autónomo tax obligations here.
We can help you
This blog post seeks to give a simple overview of what to expect when it comes to resident taxes in Spain, however, exact calculations will depend on your personal circumstances. If you require some assistance with your Resident tax returns, please email firstname.lastname@example.org or contact us here. We provide an English-speaking service online to prepare and submit all of the Spanish tax forms listed below:
– Modelo 030 – Registering for tax
– Modelo 100 – Annual Income tax declaration
– Modelo 151 – Income Tax Return for individuals under the special regime
– Modelo 714 – Wealth Tax
– Modelo 720 – Declaration of Foreign Assets
– Modelo 130 and Modelo 303 – quarterly income tax and VAT returns for autonomos/self-employed in Spain