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Spanish Tax Residency

Tax Residence in Spain

Spanish income tax & residence rules must be considered carefully when buying property, investing or having a business in Spain. If you own a property or investment in Spain, for example a holiday home or rental, you are liable to pay taxes to the Spanish tax authorities on property they own and other assets and investments here.
If you do not pay the appropriate tax to the Spanish authorities your property may build up a debt against it on which interest is also due, you will have difficulties in selling it and your bank account could be embargoed.
It is important to establish your tax residence in Spain if you have an investment or property in the country as whether you are classed as resident or non-resident as this will determine the amounts of tax you are liable to pay

Our Expert in Spanish Tax Residency

Spanish Tax Residency Rules

Under Spanish law, you will most likely be classed as a tax resident in Spain of the follow apply:

  • You spend more than 183 days in a calendar year in Spanish territory.
  • Your centre of financial interests is located in Spain.
  • Your spouse and/or underage children reside in Spain.

Becoming a Spanish Resident

To legally become a permanent Spanish resident, you need to secure three things:

If you meet the Spanish residency requirements you will need to pay a Wealth Tax that is measured on the assets that you own worldwide rather than your income and includes things such as property, savings, investments, art, jewellery, furniture, cars and boats etc. The Spanish wealth tax will only affect you if you have assets in Spain worth over €700,000 per person. The rate you pay will depend on the area in which your assets are located and can range from between 0.2% to 3.5%.

Residents in Spain can also get an additional allowance of up to €300,000, which can be offset against the value of their main home (not including properties owned through corporate structures – see our pages on Buying Spanish property through a company).

Spanish Non-Resident Tax

If you are classed as a non-resident for tax in Spain there are a number of taxes that you may be liable to pay including:

The figures above are indicative of the tax payable during a Spanish property purchase but the actual costs will depend on your particular circumstances and the region you are looking to purchase in, so please contact us for an accurate estimate.

Why choose Del Canto Chambers?

Del Canto Chambers provides dual-qualified, multi-lingual tax lawyers, who have worked on over 500 cases throughout Europe, the Middle East, Latin America and Asia, making us the counsel of choice for London-based and international clients, corporations, solicitors and tax advisers.

GET IN TOUCH

Let our legal experts help you with Residency and Tax Law in Spain

As with all tax regimes, it is very important to accurately ascertain your tax status and understand what taxes are, or are not due, to the Spanish authorities. If you get it wrong, you could be subject to fines or penalties. Del Canto Chambers specialist legal and tax advisors can help you gain a better insight into Spanish residency requirements, liabilities and how to efficiently manage for tax purposes any investments and assets you may have here.

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Articles & News

At Del Canto Chambers we are always sharing our knowledge and act as an active voice across different media. The following articles and news are related to and relevant for Real Estate Sale & Purchase and Spanish Tax Law.

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