I am resident in Spain. What should I be paying?
If you are resident in Spain you have to pay two types of taxes each year:
- Local Taxes (Council Tax, IBI)
These taxes are paid directly to your Town Hall or via the SUMA offices.
- Government Taxes (Income Tax)
These taxes are paid to the Agencia Tributaria (Spanish Tax Authority).
How do I know if I am a tax-resident or not?
When you live in Spain for more than 183 days in one calendar year you become legally liable to be charged Spanish Income Tax as a Resident. The 183 days do not have to be consecutive.
My income is not paid into a Spanish bank account so do I have to declare it?
As a resident, with or without a residency certificate,Spanish Income Tax will be calculated on your worldwide income, including pensions from your home country (with the exception of some civil service pensions) even if your income is not paid into a Spanish bank account. There are tax allowances and deductions for residents that vary according to the individual’s personal situation.
Four good reasons why you shouldn't ignore resident Income Tax
- The Spanish Government needs to claw in more income via taxes.
- They are closing in on non-resident property owners who are not presenting the MANDATORY annual tax return and residents who should pay tax in Spain on their worldwide income and do not.
- The Spanish Tax Authority has linked up with the Land Registry system and now knows who owns every property.
- Electric companies are now required to supply data to help identify which homes are continuously occupied by residents or tenants.
The consequences of non-payment
- Late declaration and payment will incur a fine.
- Ignorance of the law or the system is not accepted as a reason for late or non-payment.
- Property and bank accounts can now be embargoed until back taxes and fines are settled in full.
- Worried? Only if you do nothing and mistakenly believe the myth that you are still somehow “below the radar” or that all your tax affairs are “taken care of in my country”.
What you should declare and how to declare it can be confusing.
Let us guide you through the Spanish Tax Law to determine if you should pay tax in Spain, in your own country (ex-government employees) or maybe not at all.
The recession has made the Spanish tax authorities extremely vigilant. Let us help you to remove the stress of worrying about your tax situation..
We provide you with 2 services:
- Ábaco Taxes - free calculation for residents Find out more about what you should be paying and about your resident tax situation
- Ábaco Taxes - complete tax service for residents A comprehensive service that ensures you are tax compliant as a resident in Spain