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Being a tax resident in Spain

Tax residence in Spain.

You would be a tax citizen if you spend more than 183 days in Spain in any calendar year. It is not necessary for these days to be consecutive. For example, becoming a tax resident might take three months, followed by a five-week visit and a second two-month visit.

Even if you do not spend 183 days in Spain, you will be considered a tax resident if your centre of economic interests is in Spain. Your "centre of economic interest" refers to the location of your primary source of income, especially earned income or the majority of your assets.

There is also a third evaluation that is used. If you pass the first two exams but live in Spain with your spouse and minor children, you will be considered a tax citizen. You may need to prove that you are not a Spanish tax resident in this situation. Paying your taxes in the United Kingdom, for example, is insufficient to show that you are not a Spanish tax resident for this assessment. When your family lives here, you bear the burden of evidence, and it can be difficult to convince the tax authorities otherwise.

Personal tax in Spain.

The following are the major forms of personal taxes in Spain:

  • Income Tax - Earned income, certain pension income, and rental income are all affected. It's classified as the IRPF (Impuestos sobre la Renta de las Personas Fisicas).

  • Savings Tax - This segment includes taxes on investment income (bank interest, dividends, and so on) as well as capital gains. To distinguish between earned income and investment income and capital gains, we use the term savings tax. This is due to the fact that income tax and savings tax have different rates. In the Spanish tax code, however, it is referred to as IRPF.

  • Wealth Tax - You may be required to pay wealth tax per year, depending on your net worldwide wealth and where you reside in Spain. It's known as Patrimonio.

  • Inheritance and Gift Tax - Inheritances and gifts are both subject to the same tax laws. Impuestos de Sucessiones y Donaciones is the name of the tax (ISD).

The key difference between Spain and the United Kingdom is that Spain has a wealth tax and a gift tax. Prizes such as the lottery and premium bonds are tax-free, but all other large prizes are taxed as profits. Compensation, such as compensation for pension mis-selling, is taxed as profits in Spain.


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CONVEYANCING.

Need help to purchase a lovely property or seeking to sell your small business?

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NON-RESIDENT TAX.

Fancy visiting Spain a few times throughout the year?

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WILLS & INHERITANCE.

Peace of mind can do so many wonders for all of those who you love. A Spanish will can help a family endure less pain & aggravation.

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HEALTH INSURANCE.

Sometimes, you just that extra protection, no matter your age or circumstance. You never know what could happen.

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HOME INSURANCE.

Occasionally, leaving your home unprotected doesn’t just put your possessions at risk, but also your memories.

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COMPANY FORMATIONS.

Living in Spain is great, and owning your own business is amazing. Spain is open for business.

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ACCOUNTING.

Numbers are good, especially when your business generates much profit.

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RESIDENT APPLICATIONS.

Take the chance and move to Spain. Live a new life with so many new opportunities.

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SPANISH GOLDEN VISA.

Looking for an opportunity to invest in living? A Spanish Golden Visa is the key for you to expand your life.

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Feel free to ask us any legal or fiscal questions. You are more than welcome to also email or call us.

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