Taxes in Spain: The complete guide

If you own a house in Spain
If you own a house in Spain and only spend 30 days a year there what taxes or other contributions do I have to pay

My wife and i have now been
My wife and i have now been in spain over the time threshhold , We have ben trying to get residency app since December with no luck , my question is , do we need to pay residence tax ? i have 2 small private pensions that equate to £14500 my wife has no income we own only our spanish home now with no savings

Thank you for the information
Thank you for the information, particularly about civil service and government pensions. As stated mine are taxed at source but I am confused about the later information that I would still be given a tax band and taxed on the pension income. If I can’t be taxed twice, what does this mean, please?
Many thanks.

Am I right in thinking you
Am I right in thinking you get your personal tax allowance and the married couples allowance(regardless of age?), also I am in receipt of a personal pension, but my wife does not receive an income, so can this pension be divided between two people and the personal allowance applies for both people?

Regards Andrew

I have a rental property in
I have a rental property in Spain and also own a property we live in I only earn €3000 from the rental property after all bills paid if my allowance is €5000 do I have to pay tax I don’t have a pension as to young

Good morning
Good morning
Can you tell me if both persons will get a personal allowance plus a married couples allowance. I receive uk pensions but my wife does not receive a pension yet or any other income?
Thanks

How is the Notional rental
How is the Notional rental income of a property in the UK calculated?
Also, in your example above for a 76 year old, you calculate the personal allowance as 5,550 + 1,400 = 6,950. However, I have seen elsewhere the allowance as 5550 + 1150 (over 65) + 1400 (over 75) = 8100. Which is correct?

Good morning,
Good morning,
I am an EU national, with non-resident status in Spain. ( I work outside EU region for more than 183 days , I live in Spain maximum 60 days per year and the rest of the days I spend in my country of origin) My income is generated from a country outside EU, means outside Spain as well, where I do pay tax on it. Salary is not transferred to a Spanish bank account, but to my country of origin bank account .I do not own any property in Spain , I do not obtain any earnings in Spain from rental or things like that.
In this case, do I need to pay any tax in Spain ?
Looking forward to having your answer. Thank you!

Hi, if I receive income from a final salary scheme (so effectively an annuity purchased on retirement date), which myself and employer has contributed to, would this be treated as an annuity with the associated tax benefits? Thanks for any assistance

Hola
I have UK mil pension 11400 pounds .have just received the residents permit in Spain Murcia, my wife has no income
What will need to pay
Kind regards
.

I am a US citizen and now a Spanish resident. My income is from US Social Security and a New York State pension. I file taxes in the US, of course, and I know I have to file here. How does the tax treaty work so that I don’t pay double tax? I am 68.

Your articles says nothing about how IRAk distributions are taxed. Are they counted as regular income (as in the US? But not in France)? In Spain, is earnings in your qualified IRA tax free until they are distributed (as in the US?) Or, do you have to declair unrealized profits/gains from investments even if you have not liqudated them?

You do not mention a wealth tax. I have read the wealth tax can be quite high and includes any savings/investiments that you have as well as real estate. So, if you have an IRA (self-funded pension) you have to pay a tax on that investment asset, even if you are not distributing from it?

I am an American citizen and my wife and children have dual nationality with Spain and the U.S. We’re planning to move to Mallorca for about 9-10 month of the year. I’m aware that I must pay U.S. taxes. I don’t know all the implications of this move on my overall taxation. Do you have a tax consultant I can hire who is familiar with American expat tax law and can provide answers to all of my questions? I am selling my U.S. business and we’ll be living off of passive income (capital gains). I plan to purchase real estate in Mallorca after initially renting. — Thank you.

Some advice please….if my employer in the US actually pays for my rent would that form part of my gross income that is taxable?

Nob Resident Tax

Can you please confirm whether the amount of non resident property tax is calculated per owner or property? So for example, if a couple jointly own the property, will they pay twice the amount of an individual owner.

I sold my property on 19 March 2018. Do I have to pay any non-resident income tax for 2018?

I have lived in Spain for a month in March 2019 and received a salary of ~1100 euros. I am now a Spanish non-resident. This appears to be non-taxable, but do I still need to file a return?

Hello, for the quarterly rental income tax declaration in Spain (form 210), during which range of days can the tax declaration be filled in for Q4? Only on January 20th or is this just the deadline and the tax declaration can be made between the 1st and the 20th of January?
Thanks and regards

Good afternoon
My wife and I are UK citizens but have lived in Spain since April 2016. We are resident in Spain for tax purposes and have paid Spanish income tax for the past two years.

We have just completed the construction of a new house in Spain and are awaiting the haitation licence.

I have heard that we are entitled to a tax allowance for the cost of the new build. Is this correct?

Thank you

Hello,
I’ve got a few queries:
-I’m a UK citizen and lived and worked in Spain between Oct 2016 and Jan 2019 – I didn’t file a tax return for 2016 because I earned less than the minimum amount to file a tax return that year (I think the limit is €20k my company said) , however I’ve realised that I think I overpaid tax as it looks like I paid around 30% in taxes in 2016 in Spain despite earning less than €20k – can I apply for a refund even now?
-I filed for the Beckham tax law in 2017 – does that tax regime then apply to the entire year or only from the date onwards which I was accepted to the regime?
-Is it correct that I never submitted Modelo 720 despite owning a property in the UK from Dec 2016? I believe I count as non resident in 2016 as I lived in Spain less than 183 days and then I was on the Beckham Regime 2017 onwards.

Any pointers would be really helpful :-). Regards, Rebecca.

I think I may have overpaid my tax in Spain in 2016 – is it too late to apply for a refund? I didn’t submit a tax return that year as I earned less than €20,000

Hi , I have Stocks and Shares ISA in UK. I was told that after April, it would be changed to general investment account. If I am to keep this account would I need to pay tax on interest earned separately or it will be automatically taken from my account ?

Hi – I will have a pension income and my wife will have home rental income from a UK property – can we offset this against against the 11000 joint personal allowance , plus 1st child allowance of 2400 plus married couples allowance of 3400.
Regards
Nick

Hi, I am currently renting a house in spain, I return to the UK to work where I get my UK tax deducted from my NHS salary every 3-4 weeks. I do not have residency in spain. I am hoping to purchase a spanish property this year. I do not earn any money when im in spain my sole earnings come from the UK. Will I need to pay any taxes?

I’m looking to get my residencia asap possible but have been told that if I apply and am accepted before September then I would have to pay tax on my previous years UK income, April 2018 to April 2019 or if after September I would pay tax on my April 2019 to April 2020 UK income, is that correct? (i have no other ROW income) Also would this normally be covered under the Double Taxation agreement i:e no tax to pay in either of the above senarios?

I have been informed by the Spanish Tax authority that I have to pay back taxes from year 2015 when I moved to Spain, however I did not obtain my residencia until 10/11/2015 and I made a fiscal declaration which I never had any issues with.
I have submitted returns every year since then yet now the tax authorities are saying that I owe tax of 2500 euros for year 2015 as I was a fiscal resident prior to the official date on my residencia card.
I checked with my local town hall and according to their records I was not a resident of Spain prior to the official date of 10/11/2015
The Spanish tax office state that I was a resident in February 2014 which is impossible as I was living in the UK with my husband who was still working at Heathrow Airport until May 2015 when we came over to Spain to live and started the process of becoming full time Spanish residents and fiscal resident.
I do not know what to do as they tax authorities just keep ignoring the facts and have stated things like money was being taken out of our joint account and being spent in local supermarkets which is true but obviously only when we were over in Spain on holidays.
They have stated that the unpaid tax is in relation to payments I received from the FAS in compensation for an occupational pension that went into liquidation in 2010 and the FAS (which is a UK Government Department) pay this compensation to all members of the defunct pension scheme.
The amazing thing is that this pension only totals around £4500 a year so I really do not understand their claim for 2500 euros which is more than 50% of what I received and it is also taxed in the UK. I asked the FAS where I should be paying the income tax on these payments and they stated that as it was a UK Government payment the double taxation agreement means that tax is paid into the UK and not Spain.
I also receive a UK state pension which I know is not taxed here in Spain.
I am now just going around in circles over this matter
What more can I do to clarify the situation with the Spanish tax authorities

Hi there,
We are thinking of moving to Spain, buying a property there and putting our kids into school – so would need to become residents. We have a UK Ltd company where my husband and I are the sole Directors/owners (no staff). All our clients and earnings will come from outside Spain. Would we be able to keep the UK Ltd company and continue to pay only UK corporation tax? On the salary and dividends we pay ourselves from the company what tax rates would we pay in Spain as Spanish residents but earning income from outside Spain only? If we also have ISA’s (stocks/shares) in the UK and make money from these how will the profits be taxed? Many thanks

Hello
We are currently U.K. tax payers but are thinking of becoming residents in Spain. We have just sold our UK home and will not pay capital gains tax in the U.K. as it is our primary home. If we decide to become residents in Spain this year would we pay tax on the money from our U.K. home even though we were not residents in Spain when we sold it?

I am tax resident in Spain for 2019. I have a NHS pension and a Teachers pension to declare. I understand that I will pay tax on the NHS pension and the Teachers pension will be added to determine the income tax band.

What conversion rate is used to convert UK income into Euros ?

I also have a UK government injury benefit awarded as a result of permanent injury whilst in the UK Civil Service. This injury benefit is not taxable. Do I need to declare this income in Spain ?

Hi, thanks for this interesting article, my question is: if I were to live with my partner in Spain (we are not married) and we both have a pension below £14000, would we have to file a tax return, and will we get taxed on our pensions..? many thanks Maurice

Hello. Regarding Modelo 720, do I need to declare (i) a defined benefits private pension (from which I receive a monthly income) and (ii) a defined contribution private pension (from which I have not received any income)? FYI, I am aged 55. Many thanks.

I have a house in the UK, which is not rented out. Will I have to pay any tax in Spain on this property?

Is it possible to get residency and not be a fiscal resident if you stay less than 183 days a year?

I was tax resident in Spain till Dec 2019. Now live in England. I no longer have Spanish bank account. How can I pay last years tax in Spain.

Hi, if resident since October 2019, and prior to that under 183 days per year, would I need to complete a tax return in 2020 or would it not be required until 2021?

After living in Spain for many years and paying tax there, I returned to live in England in 2019. I want to pay my 2019 tax due in Spain but no longer have a Spanish bank account. Can I pay from my English account ?
What would happen if I do not pay 2019 tax ? I did not own any property in Spain.

I don’t understand how the personal allowance is applied to my income tax calculation. Can you explain this.

Hi, I’m planning to move to Malaga, Spain in June 2021. I have a federal pension in the USA, retired, I’m 67 years old.
Do I have to pay taxes in Spain? I’m single.
Joe

My UK state pension together with my occupational pension together total below fourteen thousand euros, because I have two pensions will I still have to make a declaration_

hello we are in the process of selling our house in uk ,we have a property in murcia region, we are taking early retirement and getting residency in September we would some advise as to the best time to sell uk property for tax purposes we understand that we may have to pay capital gains tax wwould this be in spain or the uk, our only income aftrr September will be pension .thankyou sue /alan

I’m working in Dubai which is tax free, and planning to move to Spain permanently in order to open a business, should I pay income tax on my current savings after I move to Spain and transfer the amount to my bank account there? Knowing that I hold a EU citizenship however not a tax resident in my country nor in Spain so far! I don’t have a bank account in Spain currently, but planning to make a visit and open one. I will use my current savings to start up a business in Spain. It’s obvious that I will have to pay income tax after this business starts to make money however my concern is regarding any tax that should be paid on money I would bring with me to Spain but was previously earned before becoming a tax resident in Spain. Thank you!

I work for a uk company from home, if i was to move to Spain and work from home would I need to pay any taxes on the UK earned income which has already been taxed.

I am fiscally resident in Spain and pay tax on my Spanish and English state pensions. Previously the tax officers I consulted when making my “declaracion de renta” have told me that I did not need to declare the Teachers´Pension that I receive for having worked in state schools. Later in each year the local tax office would send me a request to provide documentation to explain the undeclared money that UK authorities had informed them that I had received. I submitted copies of my P60 from Teachers´Pensions , and this was always accepted.
However, this year the tax office have informed me in writing that they do do not accept this and have presented me with a demand for unpaid tax plus accrued interest. I am unable to sort his out with the local tax office because it is closed because of Covid-19. What is your advice,please?

My husband and I became Spanish residents in 2016. My husband receives his UK State Pension and income from a private pension (annuity). I only receive income from a private pension (annuity) but am currently trying to arrange for a second private pension to be implemented. I do not receive my UK State Pension until next year. Both mine and my husbands first private annuity was taken out whilst still in the UK, with a tax free 25% lump sum being paid to me, and my husband respectively. I understand the 25% lump sum from my other private pension will be taxable in Spain but I am struggling to establish how much tax is likely to be attributed to this. I have read about 40% of the lump sum being tax-free with the remaining 60% being added to my general income for tax purposes. Contrary to this I have also read that if I take the pension as an annuity the income from this is added to any interest from savings in the UK and thereby taxed at 19% (upto €6000) and 21% (€6k-€50k); unlike general income being taxed at 19% (upto €12450) and 24% (€12451-€20200). My husband also has a second private pension which he has yet to implement and may well decide to take this in its entirety (c.£14k). Any advise you are able to give me in terms of the 40% concession on the lump sum and in what area the remaining income sits, and also how my husbands 2nd private pension (c.£14k) would be treated if taken in one go, would be greatly appreciated. I do have a further question relating to UK property rental income but think it better to write separately about this. My apologies for what appears to be several questions on this subject matter and so may I thank you in advance for your time and I hope to hear from you.

Hello again. My second question relates to rental income received from a UK property equally owned by both myself and husband. I am aware that HMRC in the UK tax the rental income from this property (by virtue of the fact that it’s in the UK) and, as such, should not be taxed by the Spanish Tax Authority. To this end my husband and I submit an annual self-assessment of income to HMRC each year. The question I have is, is it correct that a projected rental income (based on property value) be added to the “net balance of income to be integrated into the general tax base and income allocations” which total then becomes the “General taxable base subject to tax” – and by which definition the rental income from the UK property is indeed being taxed here in Spain. Once again, any advice you are able to provide would be most helpful.

Both fiscal residents in Spain, my wifes income is below the tax threshold. Can the amount below the threshold be deducted from my tax ?

Hi.
My family live in Spain and have residency. I haven’t applied yet but am thinking of applying due to Brexit.
I run a ltd company in the uk.
Im considering residency for myself, but i spend over 270 days a year in the uk working and pay all my taxes in the UK.
I understand that I would have to pay corporation tax and personal tax in spain as well as england (Just the difference between the amounts).
We want to buy a property rather than rent in Spain. But Spanish tax system seems very complicated. Would you advise i dont get residency and just travel as a tourist or apply for residency?

As I receive an income of less that 10,000 euros per annum do I have to a Tax Return. I am 73 years old.

As fiscal resident pensioners living in Spain, is it necessary to pay ABACO ADVISERS a fee if we earn under the tax bracket if we were to come to you for our income tax declarations. What documents would we need for a meeting with you in connection with our income tax declarations.

Hi
My question is this. Do I need to pay tax in Spain as a resident if I don’t earn anything. I sold my house in London and have around €500,000 which I think will keep me for at least the next 20 years. I am using the capital, simply transferring €1500 a month from my U.K. bank account into my spanish bank account. Do I need to pay tax on this ?
I have pensions – private and U.K. state that I can start using in 16 years time and I understand I will need to pay tax on my pension income then. But in the meantime do I need to pay tax if I am simply spending my own money ?

Thanks

Lump sums from UK Government Pensions
My wife retired in 2019 taking a pension from the Local Authority (Government) Pension Scheme. We understand the pension income is covered under the Double Taxation Convention and is declared on the RENTA to calculate the tax rate for our other income but not taxable. How does the 25% lump sum get treated? Is it added to the pension income received during 2019 or is it declared separately and if so, is it still protected from tax under the Double Taxation regime?

Hi in February 2019 I had to move out of the property I was renting for the last 12 years which I got tax relief on the rent I paid. My new rental contract is for 5 years from 01/03/2019 I am resident in Spain and over 65 can I claim tax relief on the new property I am renting many thanks
Steve

Soon be living in Spain on a uk and dutch stat pensions, at what amount do i pay tax. I am married and wife has her own state pension

Hi ! As a Tax paying Resident in Spain can you tell me , Is there an age whereby tax is no longer Paid on Pensions in Spain Please, I search everywhere but still can’t find any info on this subject,

Hi,

I have been a worker from 2019 sept to now, in 2020. I paid tax for Jan to Aug but was not given my full personal allowance. I am told to do a tax claim for rebate in June 2021. Do I really need to wait that long if I am leaving spain in August?

Secondly, my employer has asked me to resign and he will pay me 3000 euros as there is no work for me. I read it is tax exempt. Employer is saying it is not and he will charge me tax and N.I contributions. Can he do this?

I am planning to relocate to Spain from the UK this year. I work in the oil and gas industry and work all over the world. what are the tax laws for foreign income earned outside Spain

My husband and I are looking to buy a property in Spain to retire too. We have savings that we intend to live on until we receive our State pension in about 6 years time.
Will we have to pay Tax on our savings or will tax just be payable on the Interest that our savings make.

I own US intellectual property, which may provide me with a small income from a US company under a license agreement. What is the yearly tax rate on royalties received from intellectual property in Spain?

When I am permanently residing in Spain I would like to buy some stocks and shares, so how much will I be taxed when buying them and selling them (with my KEYTRADE account)?

Are there any tax reductions for first time buyers who persons who have reduced disability invalidity status?
Are there any yearly benefits and reductions for disabled persons residing permanently in Spain? For example, reduced utility bills?

Are husband and wife taxed separately in Spain?

Hello,

My family and I have received a NON LUCRATIVE residence Visa in Spain for 1 year, and is renewable once we reach. This is a residence Visa.
On this Visa we are not allowed to work or do business in Spain. We plan to stay in Spain for some years purely on on savings as we have no income anywhere in the world.

I have 2 questions:

1. If I transfer my savings to Spain for our expenses and living, will the money be considered an income and I be taxed on it ?
2. When I open a bank account in Spain, do j earn an interest on the money in the account and is this interest taxable ?

Please let me know.

Thank you!

Hi we would like some Spanish tax information regarding what would happen if we sold our uk home , valued at 450k if we became Spanish residents before we sold and before we come out of Europe (Brexit)
And also the same question if we sold after Dec 31st. and a possibility of us being residents.

hi !
I have received a predoctoral grant from the Ministry of Science and Innovation of Spain.
I have some information regarding the financial aid I will get and I cote: “En relación con la ayuda para la financiación del contrato, la ayuda anual para cada uno de los contratos predoctorales será de 22.300 euros. La retribución salarial mínima que deberán recibir los investigadores en formación durante este periodo, que se deberá indicar en cada contrato, será de 17.785 euros brutos anuales.”
I would like please to know if doctoral students have to pay tax and what is the net income I will get based on these information ?
with best regards,
Toufik

Hi, I moved to Spain in Febuary 2020 and stated work there, paying tax. Now when I come to submit my UK Tax return for year to 5/4/20, it asks me about tax pain in Spain during this period – Tax paid, and Gross taxable. How can I get this information – it is not shown on my paslips. Eg. would the Spanish Tax Authoriries Hacienda give me a formal stagment of this?
Mnny thanks if you can help.

I’m curious about digital assets. For example if you own the copyright to photos or music, these live in the UK on UK servers, and you are paid royalties in the UK for these. Where would the tax be paid for someone who have a main residence in the UK but spends more than 6 months a year in Spain?

If I move to Spain when I retire me and my wife we can take out £12,500 each from our pension tax free.
if I was living in Spain would I be tax on that if it was paid into my Spanish bank account

Hi Miriam we moved to Spain October 2019 & I payed my taxes for 2019/2020 in the UK at the January 31st 2020 Deadline. We got our residency December 2019 the only income we have is my Royal Mail Statutory Pension which is paid into a UK account then I transfer it to my Spanish account each month. My total pension for the year is £11,297.88 would I need to pay tax on my UK Pension my wife has no income.

Hola

I sold my English property to buy in Spain and am now a resident with TIE. I gave my brother a loan to help buy a house for him and his long term partner. He is paying me back on a monthly basis to my spanish bank account. Is this taxed as income??

Kind Regards
Kelly

Hi last year i started to get my state pension from uk and in Spain tax year received euro 8,659 and also Teachers pension of euro 7,500 which is taxed i know in uk and not taxable in Spain. I know i have spain personal allowance of 6,700 before tax is deducted BUT do you add both my state pension and my teachers pension together and then deduct allowance …… which would mean i pay tax on nearly all my state pension , or is my earnings for the teachers pension ignored and all my allowance goes against my state pension
Thanks anticipation
Laurie

can you advise me what my tax liability would be for this year

my income is as follows UK State Retirement pension 8281 28 euros per ann Private Pension Royal Mail 596.30 euros per ann

Private Pension United Utilities 12.331.79 euros per ann my total income 21.209..37 euros per ann

i am married so i wish to make a joint declaration my wife as no income of her own and will not be entitled to

her State Retirement Pension until next year i am my self 74 years of age and will be 75 in April i have no other

income

we have no savings this is our total yearly income

i am 74 years of age and fie a tax return each year i claim for my wife as she does not have any income and does not

qualify for her state pension until 2022 can you advise me what will my personal allowance be

ie 5.550 or the higher rate as i am over pensionable age i live in Spain and am resident

Hi
Were do i apply for A1 as a spanish citisen ? to work abroad borders
Some say i have to start it in Spain other say i have to do it in DK

The reason i ask is that will get a contract from denmark, and still pay my taxes in Spain
i will not work in denmark, as i willl be working around europe

Br Jan

how can I find out how much tax I’ve paid .

Hi
I am a early retiree from the uk civil service. I am below the uk tax threshold herefore do not pay tax in the uk on my pension.
Can Spain tax me on my civil service pension as the spanish threshold is lower, or am I correct in thinking my government pension is only taxable In the uk

Thanks

If I owe tax to the Spanish taxman, will a European arrest warrant be issued, or will I be arrested if I return to Spain

my wife as just qualified for attendence allowance it will be paid from the uk she as lived in spain for the last 18 years the uk state this is a non taxable benefit will she need to make her first tax declaration next year her only income is a uk state pension of appox 11 thousand pounds per annum does she have to pay tax on this attendence allowance she will be receiving from the uk she has alzimers his is why she is able to get this alowance
will there also be an allowace on her tax declaration for her disability
thank you in anticipation of a reply mr alan armstrong

hello
I am from UK with residency in spain for over 1 0 years
I will be 60 in january and entitled to take a lumps sum of my NHS pension but it appears spain will tax it but uk wouldnt.Is it possible to avoid this?
yhanks
william