Spanish taxes that you need know
Purchasing a property and living in Spain can be a wonderful experience. However, you may be liable to pay taxes that you do not know you need to pay, especially on your income and assets. Meaning that you will need to file for a tax return in Spain. Depending on your residency status, you will need to pay Spanish taxes on your total income from your home country or just your income in Spain.
RESIDENT OR NON-RESIDENT.
Depending on your residency status in Spain, full-time resident or non-resident owning a property, you will be subject to Spanish tax on your total income, including from outside Spain, e.g. United Kingdom. You can utilise tax deductions to help you. Non-residents with a property in Spain, will only pay tax in Spain and only on Spanish income. This is usually a flat rate that includes potential income from a Spanish property, there is a tax for property ownership in Spain which falls under VAT.
THE SPANISH TAX SYSTEMS.
The tax system in Spain may seem complicated, although it is merely split between the country and regional governments, with each of Spain’s 17 autonomous regions deciding on its own tax rates and liabilities. Rates will vary for income tax, property tax, wealth tax, capital gains tax and inheritance tax between different regions across Spain. Furthermore, if you wish to work in Spain, you will need to contribute to the Spanish social security taxes. The Spanish tax year is straight forward as it runs from the 1st of January until the 31st of December.
IMPORTANT SPANISH TAXES.
The types of taxes and tax routes that you need to consider, are:
Residents and non-residents tax.
Spanish property tax.
Income tax.
Corporate tax.
Tax deductions and allowances.
VAT (IVA).
Tax rates.
Tax return.
Married couples tax.
Capital gains tax.
Wealth tax.
Inheritance and gift tax.
OUR SERVICES
At PSI Consultants, our experienced legal, fiscal & visa experts can help you acquire residency & nationality in Spain through property investment in Spain. We will guide you through the whole process of gaining Golden Visa residency in Spain and we offer a wide range of services related to the management and transmission of property ownership in our department dedicated to conveyancing, donations & inheritances. Also in our legal department we manage the obtaining of NIEs, Residences, Wills, private contracts, representation and personalized legal consultation on all related matters.
If you would like to learn more about our Spanish services in the Costa Blanca area, please feel free to contact us at any time when our office is open between 9am - 2:30-pm, Mondays to Fridays.
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Feel free to ask any legal or fiscal questions that you need answered. You are more than welcome to also email or call us.