Understand your Taxes in Spain
We can help you when you stay on top of the Spanish tax system by explaining how to manage your tax scenario across personal income, international wealth and corporate situations
How does this work?
We will arrange a call with you to understand your specific situation and needs. It can be to optimize the amount of taxes you would have to pay in Spain, provide your remote employer with an analysis of the implications of your relocation in Spain, or understand how trusts, overseas income or LLCs partnership income are taxed in Spain.
No matter the query, we will be glad to provide you with a study on what will be the implications on your scenario in Spain, tax-wise, and what solutions can we offer or suggest.
What is the expected timeline?
Once we have gathered all the information required, and we have clarified any questions we may have, we will provide you with our tax study in no more than three working days.
Once we have provided the tax study, we will be available to discus the specifics of your arrangements, explore any clarifications and provide our recommendations to ensure you are tax efficient.
How can a lawyer help me?
Spanish taxes are complex, and international sources of income, or its equivalent in Spain, is not always automatic.
Luckily, our lawyers can assist you into obtaining a clear reply to your specific query, making you understand with clarity your tax situation in Spain.
Our team will simulate your potential tax bill, explain how to mitigate certain situations and how you can be tax efficient, while being totally compliant.
Our tax study is designed to improve your certainty when moving to or doing business in a new country.
We are also there to help manage your annual tax returns and even VAT questions.
¨We will be with you each step of your journey.¨
– Immigration Team
Find your Tax Lawyer
Frequently Asked Questions
Your foreign employer will not have directly any withholding obligations in Spain.
However, if the foreign employer has a permanent establishment in Spain, through a branch, and is deducting the cost of your salary from its taxable base for corporate income tax, they must make withholdings on your salary, which correspond to your personal income taxation.
You would only have to pay taxes in Spain on the sale of your foreign assets if you sell it during a tax year when you have been a Spanish tax Resident.
If that is the case and you are younger than 65 years old in the tax year you sell the property, you will have to pay capital gains taxes when selling the foreign property.
However, Spain has a capital gains exemption if you reinvest the money following the sale. It works as follows:
You bought the property for €400,000 and later you sell it for €1,200,000.
You have made a capital gain of €800,000 and buy a new home in Spain for €600,000
As you have reinvested 50% of the amount received, this portion is exception from capital gains tax. So you will only pay taxes on the 50% of the capital gain. In this scenario, you will pay capital gains on €400,000.
To receive this exemption, you must:
– live in the property for at least two years before you sold it
– buy a new Spanish property within two years of selling your former home
– live in the new Spanish property within a year of buying it
– live in the new Spanish property for at least three years following the purchase