Tax liabilities for (non-)residents in Spain

Whether you are planning to spend short periods in Spain or are considering settling there permanently, it is important that you seek proper tax advice to know exactly what taxes you have to pay. Both as a resident and non-resident.

Resident in Spain

You have to pay income tax as a foreigner, being resident in Spain, if you:

  • staying in Spain for more than 183 days,
  • your main source of income comes from Spain,
  • Or if your family lives there.

This means that you have to pay taxes for wages received or income from economic activities, as well as capital gains, dividends, etc., regardless of where in the world they were generated.

If you have assets in excess of €700,000, you must also pay wealth tax . However, in some autonomous regions, this tax is discounted and the amount payable is 0.

If you own a fortune of more than 3 million euros in Spain, you must pay what is known as the Spanish Impuesto temporal de Solidaridad de las Grandes Fortunas (literally, temporary solidarity tax on large fortunes).

Non-resident in Spain

If you are a non-resident foreigner, registered or not, in Spain, you have to pay income tax if you own a property in Spain and/or receive rental income, for example. For this, a flat rate of 19% is applied for residents in EU member states, Iceland or Norway, and 24% if you live in another country. In addition, you pay 19% on the capital gains made in Spain.

Digital Nomad

If you plan to move your tax residence to Spain, it is a good idea to investigate the possibility of applying for the special regulation for workers transferred to Spain from abroad or to apply for the Digital Nomad Visa. In both cases, you have to pay income tax and a flat rate of 24% is applied on up to €600,000 per year for five years, and 47% on any amount above €600,000.

We hope this overview helps you get a better idea of taxes in Spain. If after reading you still have questions about the tax rules in Spain, OTIS Legal Group is here for you, please contact us without obligation.

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