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Spanish personal tax

You are arriving in Spain, and would like to know how much taxes you will have to pay on your Personal Income. As this depends on several factors, let’s do a breakdown on the main details.

How can a lawyer help me?

Taxes are complicated all over the world. However, Spanish tax Authorities are famous for being harsh and picky. The access, preparation and submission of the Spanish Personal Income Tax Returns can be complicated. In case you have different sources of income, or income from outside of Spain, it is convenient to request professional tax advice

¨We will be with you each step of your journey.¨

– Immigration Team

Penalties

The implications of not filing the tax return usually are receiving a penalty than can go from 50% to 150% of the unpaid tax liability, plus the payment of the tax liability.

Note that Spanish tax Authorities and other countries’ tax authorities have signed International Tax Treaties that include an exchange of information between both Tax Authorities. Hence, trying to hide income or assets from the Spanish Tax Authorities is not recommended.

How am I going to be taxed?

Personal Income Taxation depends on Tax Residency Status. 

You will be considered as a Spanish Tax Resident for a specific tax year, in general terms, if you stay physically in Spain more than 183 days during the tax year (that goes from January 1st to December 31st), including sporadic absences, such as holidays and work travels. 

If you are in Spain more than 183 days in the tax year, you will be considered as a tax resident for the whole tax year. 

Also, you will be deemed as a Spanish Tax Resident if your spouse and dependent children are considered as Spanish Tax Residents. However, to avoid this consideration, you should prove that you have been a Tax resident somewhere else. 

If you are considered a Spanish Tax Resident, you will be taxed on your worldwide income. Your employment income, freelancing income and property income (rental income and sole ownership income) will be taxed at a progressive rate which can go up to a 50% in certain regions, such as Catalonia. Progressive means that, the higher the income you perceive, the higher the tax rate will be. Savings income (interest, dividends and capital gains, among others) will be taxed at a progressive rate that goes from 19% to 26%.

On the other hand, A Spanish Non-Tax Resident is taxed only on its Spanish Sourced income at a flat tax rate. This rate is 19% for EU tax residents and 24% for non EU tax residents. This would apply to employment income from work performed in Spain, rental income from properties in Spain, interests from Spanish Bank accounts, dividends from shares in Spanish companies, and capital gains from Spanish assets, among others. No expenses would be deductible in case you are a non EU tax resident.

Find your Tax Lawyer

Sergi Mingallon

Sergi Mingallon

Tax and accounting specialist
Carla Sanchez

Carla Sanchez

Tax Accountant
Begoña Villarroya

Begoña Villarroya

Tax Specialist
Jorge Lacasa

Jorge Lacasa

Tax Specialist
Tatiana Pacho Retamozo

Tatiana Pacho Retamozo

Trainee

Frequently Asked Questions

Personal Income Taxation depends on Tax Residency Status. A person is considered as a Spanish Tax Resident for a specific tax year, in general terms, if stays physically in Spain more than 183 days during the natural year (that goes from January 1st to December 31st), including sporadic absences, including holidays and work travels. 

If you are considered a Spanish Tax Resident, you will be taxed on your worldwide income, independently on the source of the income and where is located the bank account where you perceive the income.

Also, please note that the consideration of the movement of the company income into your pocket can be considered as employment income or as dividends, depending on the structure of your foreign company. 

– In case you incorporate a LLP in the UK, or a Partnership or S-Corp in the US, or a similar entity, the income from the company to yourself will be considered as employment income and, therefore, subject to the progressive tax rates that can go up to 50% in certain regions. 

– In case you incorporate a LTD in the UK, or a C-Corp in the US, the income from the company to yourself will be considered as dividends, and therefore, subject to the progressive tax rates that can go from 19% to 26%.

In case you perceive any income from abroad that is being taxed abroad too, we may have the possibility to apply the mechanism in the corresponding Double Tax Treaty to avoid being taxed twice. This means that, from the amount of taxes you have to pay in Spain on your foreign income, we will deduct the amount of taxes already paid abroad on this income, with the limit stated in the Double Tax Treaty between Spain and the origin country of the income. 

In case you want to stay in Spain 180 days, but avoid being considered as a Spanish Tax Resident, you would have to claim before Spanish Tax Authorities, when they ask, that you are a Tax Resident elsewhere, as nobody can not be a tax resident anywhere. For that purpose, you should be able to provide Spanish Tax Authorities a certificate of tax residency in the referred country, based on the Double Tax Treaty between Spain and such country, for the tax year that is being checked.

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Ethan Keeney
Ethan Keeney
17:09 02 Dec 22
Sara has been a great help to me in my application for the Beckham tax.
Josh Pudner
Josh Pudner
12:15 24 Aug 22
We use Lexidy for our payroll and accounting services in Spain, and they have provided great service to us for 3 years. They always respond on time, are proactive, and accurate with their work. I would recommend using them. Our contact Isabel Sanchez is great to work with.
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20:48 01 Jun 22
The Lexidy team is uniquely positioned to provide pan-European business and tax advisory services; what would be complex or impossible for a country-specific advisor is straightforward for Lexidy. They answered in days what would take weeks for other firms.
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Mike Leon Widiner
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Excellent customer service by Jose García
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Absolutely Professional and worth-it Experience!I can highly recommend working with Carlota Llopart and Lexidy! Carlota and the team have gone beyond my expectations when it comes to owning and actually even driving the steps for my mortgage, the purchase of my flat as well as taxes filed. I have had an extremely difficult seller, but I was able to fully trust the team to guide me through this first acquisition.I have already recommended Lexidy to friends who had similar positives experiences and will continue working with Carlota and the team. Side note, me being German: Great value for money too!
Nadina Jitaru
Nadina Jitaru
13:40 29 Apr 22
We've been working with Lexidy for years and they are professionals in all payroll and tax related matters. The team provides efficient and exemplary services, we've been working closely with Isabel on a daily basis and her continous support is greatly appreciated. If you are in need of lawyers or accountants, Lexidy Boutique is a great choice.
Rick Kleinhans
Rick Kleinhans
13:03 27 Apr 22
Lexidy has been a lifesaver. The entire team has helped us so much on different matters both personal and corporate. Isabel in correcting an error by a previous accountant that was costing us an extra €1000 every month in social security payments! Jose with various matters and tax advice. Diego in helping us get documents notarized in Valencia even though he is based in Madrid. I cannot recommend them enough!
adela
adela
10:39 26 Apr 22
Professional and very efficient. Excellent service and very easy to communicate with. I have been in contact with Jose Garcia, he helped me solve all my tax related doubts. Very much recommended!
Sarah Taylor
Sarah Taylor
11:03 31 Mar 22
Lexidy did an amazing job setting up our company in Spain, which was a complicated and lengthy affair which they handled with patience and professionalism. Their ongoing tax, accounting and payroll services have been greatly appreciated. Friendly and professional team with perfect English. Highly recommended!
Tanja C
Tanja C
01:36 24 Mar 22
I highly recommend Jose G. if you ever need any expertise in the field of tax payments (whether you are in Spain or you return back to your home country).Everything was handled fast, professionally and efficiently.
marc mozos
marc mozos
16:56 03 Mar 22
Encantado con el trabajo de Lexidy, Sergi Mingallon es un excelente experto en contabilidad. Recomendado 100%.
Y. C. Lim
Y. C. Lim
11:14 01 Mar 22
Lexidy's legal, accounting and tax services teams have always been prompt and efficient since we started with them several years ago. Sergi from their tax and accounting team has also been keeping our books in good order with clarity in our tax obligations, which is highly appreciated. Thank you!!
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