
Decisions by the UK against illegal workers and it’s implications for businesses
Decisions by the UK against illegal workers and it’s implications for businesses. Recent talk within the legal and political realm has been centred around the
When moving to Spain, buying property, investing or running a business, you must consider Spanish tax rules. You will pay Spanish tax on any property you own and other assets or investments in the country.
The amount of Spanish tax is determined by whether you are classed as a Spanish Tax Resident or non-resident, so it is essential to establish your tax residence in Spain.
Capital Gains Tax
Spanish Tax residents are liable to Capital gains (e.g., from selling real estate or shares) are generally taxed at progressive rates ranging from 19% to 28%, depending on the amount of the gain. See the Spanish Tax Office (AEAT) page for more information on calculating and paying capital gains tax.
Wealth Tax (Impuesto sobre el Patrimonio)
Spanish tax residents pay Wealth Tax on their global assets, such as real estate and investments, with rates usually between 0.2% and 3.5%, depending on regional regulations and deductions. Please review the details of this tax on the Spanish Tax Office (AEAT)page.
Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones) Inheritance and gift tax obligations in Spain depend on the region and the relationship between donor and beneficiary. Rates, allowances, and exemptions can vary significantly. Refer to the Spanish Tax Office (AEAT) page for up-to-date information.
Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad a las Grandes Fortunas)
This temporary tax applies to Spanish Tax residents with net wealth exceeding €3 million. The tax rates follow a progressive scale and may vary by region, complementing existing wealth tax obligations. Please consult the Spanish Tax Office (AEAT) page for the latest guidance.
Spanish income tax and non-residence rules must be considered carefully when buying property or investing in Spain.
There are free Spanish Non-Resident Tax Calculators online, but please be wary about relying on them to calculate the tax you think you need to pay. There are many complex variables regarding your tax residency status, the type of income you receive, the type of property you own, etc., so the results from these calculators can be inaccurate. The fact that you used an online calculator will not help you if Spanish tax officials issue you a fine for an inaccurate tax declaration.
For peace of mind and to avoid any nasty surprises, it is always worth getting professional advice on your Spanish residency status and the taxes due. Tax and legal professionals may also be able to suggest tax mitigation steps that can help you legitimately reduce your tax bill.
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