Spanish Citizenship

Taxes for Spanish Citizens and Residents

As a Spanish citizen or resident, your tax obligations depend on whether you are a tax resident or a non-resident in Spain.

1. Tax Residency in Spain

You are considered a tax resident in Spain if:

• You spend more than 183 days in Spain during a calendar year, or
• Your main economic interests or center of vital interests (e.g., business, property, or family) are in Spain.

If you are a tax resident, Spain taxes your worldwide income. If you are a non-resident, you are only taxed on Spanish-sourced income.

2. Taxes for Tax Residents

Personal Income Tax (IRPF)
Spain has a progressive income tax system with the following brackets:

• Up to €12,450: 19%
• €12,451 to €20,200: 24%
• €20,201 to €35,200: 30%
• €35,201 to €60,000: 37%
• Over €60,000: 45%
  Some autonomous communities may adjust the rates slightly within these brackets.

Wealth Tax (Impuesto sobre el Patrimonio)
Applies to individuals with significant net assets. Exemptions typically up to €700,000, though it varies by region. Rates range from 0.2% to 3.5%, depending on the value of your assets.

Capital Gains Tax
Capital gains from the sale of property, stocks, or other investments are taxed at:

• 19% on gains up to €6,000
• 21% on gains between €6,001 and €50,000
• 23% on gains between €50,001 and €200,000
• 28% on gains over €200,000

Inheritance and Gift Tax
Rates vary based on the relationship between the giver and recipient and the autonomous community. Rates can range from 7.65% to 34%, with reductions and exemptions depending on the recipient’s status.

Property Tax (IBI)
Owners of property in Spain must pay an annual property tax, which varies by municipality and is based on the cadastral value of the property.

VAT (IVA)
The standard VAT rate is 21%, with reduced rates of 10% and 4% for specific goods and services.

3. Taxes for Non-Residents

Rental Income
Rental income from property in Spain is taxed at:

• 24% for non-EU/EEA residents
• 19% for EU/EEA residents (deductions are allowed for EU/EEA residents only)

Capital Gains Tax
Capital gains from the sale of Spanish property or assets are taxed at 19%.

Non-Resident Property Tax
Non-residents who own property in Spain must pay an annual non-resident property tax, which is based on the property’s cadastral value.

4. Double Taxation Agreements

Spain has signed double taxation treaties with many countries to prevent double taxation on the same income. These treaties allow tax residents to claim tax credits or exemptions for taxes paid abroad.