Taxation of non-residents in Spain: A guide to survive

Written by Juan Madridejos Velasco and Luis Alberto Álvarez Moreno, Notaries in Barcelona and partners at J&LA Notarios Asociados.

Even if you don’t plan on making Spain your permanent home, you can still enjoy many of its advantages — like the country’s excellent infrastructure and the mild temperature all year round. But there’s a catch: you’ll need to file a tax return as a non-resident of Spain if you spend more than 6 months of the year in Spain.

From our Notary in Barcelonawe do not offer services of consulting related to tax nor we get involved in tax declaration for non-resident. But since these are frequently asked questions at the notary, we’ve prepared a guide on how taxation of non-residents in Spain works, in order to make anyone taxes declaration as easy as possible.

How Taxation of Non-Residents in Spain Works

If you spend more than six months of the year in Spain, or if your spouse, children, or main source of income is from Spain, you are considered a tax resident of Spain. You will not be deemed a resident of Spain if you spend less than 183 days a year (roughly 6 months) in the country. However, non-residents are subject to taxation on any income or assets generated inside the country.

Tax policies and rates in Spain may vary from one area to another due to the intricate interplay between state and regional tax law. While residents must pay tax on a proportion of their worldwide income, non-residents in Spain are only subject to taxation in Spain on their earnings in the country.

Non-Resident Tax Rates in Spain

Income, investment profits, interest, dividends, and royalties received by non-residents are taxed at a rate of 19% to 24% in Spain, while pensions are taxed at a rate of 8% to 40%. Several nations have signed double taxation avoidance treaties with Spain to avoid taxing their citizens twice on the same income.

Likewise, income from renting out a property you own in Spain is subject to its own set of regulations. Landlords in many areas are required to register with the government and get a license before they can legally rent out their properties to tenants. Property owners in Spain are responsible for collecting and remitting rental income tax on a quarterly basis, even though the fiscal year officially runs from January 1 to December 1. This includes settling any tax debts before renting out, selling, or even giving away real estate.

It is mandatory for all Spanish property owners to pay IBI to the local government every year, whether or not they rent out their primary residence. The property tax rate ranges from 0.4% to 1.3% of the assessed value, depending on the jurisdiction. ITP, or the property transfer tax, must still be paid if you sell the property. Your non-resident tax in Spain must be registered for and paid on time; if you are unable to do so, you may designate a legal agent to do it on your behalf.

How to File Your Taxes in Spain

Filing taxes in Spain as a non-resident differs somewhat from filing as a resident, but it’s still a straightforward procedure. Here’s what non-residents need to file their Spanish income tax.

To begin paying taxes in Spain, you must first get a tax identification number from the relevant Spanish tax authorities. You can do this by visiting their website or getting in touch with the Spanish consulate in your area. After obtaining your taxpayer identification number, you can then fill out Form 210 to file your taxes.

Notary services in Barcelona

As we mentioned earlier, the Notario does not get involved in the tax declaration process. For more information on the function of the Notario in Spain, you can read this article:

However, if you need any other Notary services (in case you are planning to create a company in Spain or would like to buy a property in Spain for example) then we’ll be very pleased to help!

At JLA Notarios Barcelona, we have a staff of highly qualified experts who are always available to assist you. Do not hesitate to reach out through the contact form, by phone, email and even WhatsApp!

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