Resident And Non Resident Taxes In Spain

Published on 7/15/2009 in Taxes in Spain

Individuals and Companies that are liable to pay taxes in Spain are classified by the Inland Revenue System in two main categories:

SPANISH RESIDENTS (Individuals and Companies)

Individuals are to be considered Spanish Residents if:

They spend more than 183 days in Spanish territory in a calendar year or,
Their main base or centre of economic activities or interests are in Spain or,
Their spouse and/or underage dependant children are permanent residents in Spain (unless the individual is legally separated or can prove tax residence elsewhere)

On the other hand an entity or organisation is deemed to be a resident of Spain when it meets any of the following criteria:

It was incorporated in Spain.
It has its registered office in Spanish Territory.
Its effective chief office is located in Spain, i.e. when the management and control of the sum of its activities are performed within the territory.

SPANISH NON RESIDENTS (Individuals and Companies)

If none of the above residents criteria are met by an individual or organisation he/she will be considered as Non-Residents for the whole tax year and will be taxed accordingly.

A person or entity may prove its tax residence in a specific country by a certificate issued by the Tax Authority in that country. The period of validity of these certificates is one year.

A person or entity may prove its tax residence in a specific country by a certificate issued by the Tax Authority in that country. The period of validity of these certificates is one year.

In turn Spanish Individual Residents are classified into 2 different Working Categories: Autonomos (Self-employed) or Trabajadores por Cuenta Ajena (Employees).

Depending on our residence status and working Category, one is liable to file and/or pay certain tax returns to different state levels; National, Regional autonomous and Local (municipality) taxes. Most individuals and organisations will probably need to comply with one or more Spanish taxes in accordance to his/her economic activities, incomes and/or property ownership within the Spanish territory.

Figure 1 Individual / Companies Classification for Spanish Taxes

Spanish taxes Categories according to State Levels

National

Regional autonomous

Local (municipality) taxes.

IRPF Nationals and Residents income tax.

Non-Residents Income Tax (IRNR – Impuesto sobre la Renta de No Residentes)

Companies Tax – Impuesto Sobre Sociedades

VAT Tax (Impuesto sobre el Valor Añadido - IVA)

Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones - ISD)

Transfer Tax and Stamp Duty (ITP -Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados)

Property Tax (IBI – Impuestos sobre Bienes Inmuebles)

Municipal Tax (BS -Basura y Alcantarillado)

Motor Vehicle Tax (IVM - Impuesto sobre vehículos de motor)

Each of the above tax concepts has its own form (model or Modelo) and time – frame (Deadlines) within which they have to be filed and/or paid. Additionally some taxes are Periodic while others are Non-Periodic, i.e. some ought to be paid on periodic bases: Yearly, half-yearly, quarterly or monthly, while others are only payable when a specific economic event takes place: Property real estate purchase, Vehicle purchase, Inheritances, etc.

Following the above categories and idea we can outline the Spanish Tax System as shown in the following charts.

MPORTANT NOTICE: The Tax Rates shown in the tables below may vary in accordance to personal situations, economic activity or property ownership. Please do not hesitate to contact web@costaluzlawyers.es for further explanations or personal tax returns assessments.

RESIDENTS

INDIVIDUAL SPANISH RESIDENTS TAXES (PERSONAS FÍSICAS – RESIDENTES) SELF EMPLOYED - AUTÓNOMO PERIODIC TAXES
TAX LEVEL	TAX NAME	TAXABLE EVENT	TAX RATE	TAX SUBMISSION	WHERE?	MODEL / FORM
National	IRPF	Incomes in general	18% - 40 %	From May to June	Bank or AEAT	100
National	IVA	VAT	4%-16%	Quarterly	Bank or AEAT (1)	303
National	IVA	VAT	4%-16%	Annual summary	AEAT	390
National	Retención IRPF	Income tax withholdings	7%-18%	Quarterly	Bank or AEAT (1)	110
National	Retención IRPF	Income tax withholdings	7%-18%	Annual summary	AEAT	190
National	Retención IRPF sobre arrendamientos de bienes inmuebles	Rent income tax withholdings	18%	Quarterly	Bank or AEAT (1)	115
National	Retención IRPF sobre arrendamientos de bienes inmuebles	Rent income tax withholdings	18%	Annual summary	AEAT	180
National	Social Security contribution	Self Employed Social Security	Variable	Monthly	Direct debit or Bank	Handed by the Social Security office
Local	IBI(2)	Property tax	Variable. Based on the cadastral value	Half yearly or Yearly	Bank or local gov´nt office	Handed by the town council
Local	Basura y Alcantarillado (BS) (2)	Municipal maintenance and rubbish tax	Variable. Depends on the Town Council	Half yearly or quarterly	Bank or local gov´nt office	Handed by the town council
Local	IVM	Motor Vehicle tax	Variable. Depends on the Town Council	Yearly	Bank or local gov´nt office	Handed by the town council

INDIVIDUAL SPANISH RESIDENTS TAXES NON PERIODIC TAXES
TAX LEVEL	TAX NAME	TAXABLE EVENT	TAX RATE	TAX SUBMISSION	WHERE?	MODEL / FORM
Autonomous Community	ITP/AJD (2)	Premises purchase taxes	0%-7% of the Purchase price	Up to 1 months after the Title Deed signature	Bank	600
Autonomous Community	ISD	Inheritance and Donations tax	Variable	Up to 6 months after the taxable event takes place	Bank or autonomous regional office	650 (Inheritance) 651 (donations)

Bank if payment is due and AEAT if there is a tax refund
If owner of a real estate property

EMPLOYEES - INDIVIDUALS IN GENERAL PERIODIC TAXES
TAX LEVEL	TAX NAME		TAXABLE EVENT		TAX RATE		TAX SUBMISSION DEADLINE		WHERE?	MODEL / FORM
National		IRPF		Incomes in general		18% - 40 %		From May to June	Bank or AEAT	100

EMPLOYEES - INDIVIDUALS IN GENERAL NON PERIODIC TAXES
TAX LEVEL	TAX NAME		TAXABLE EVENT		TAX RATE		TAX SUBMISSION DEADLINE		WHERE?	MODEL / FORM
Autonomous Community		ITP/AJD (2)		Premises purchase taxes		0%-7% of the Purchase price		Up to 1 months after the Title Deed signature	Bank	600
Autonomous Community		ISD		Inheritance and Donations tax		Variable		Up to 6 months after the taxable event takes place	Bank or autonomous regional office	650 (Inheritance) 651 (donations)
Local		IBI(2)		Property tax		Variable. Based on the cadastral value		Half yearly or Yearly	Bank or local gov´nt office	Handed by the town council
Local		Basura y Alcantarillado (BS) (2)		Municipal maintenance and rubbish tax		Variable. Depends on the Town Council		Half yearly or quarterly	Bank or local gov´nt office	Handed by the town council
Local		IVM		Motor Vehicle tax		Variable. Depends on the Town Council		Yearly	Bank or local gov´nt office	Handed by the town council

SPANISH RESIDENT COMPANIES PERIODIC TAXES
TAX LEVEL	TAX NAME	TAXABLE EVENT	TAX RATE	TAX SUBMISSION	WHERE?	MODEL / FORM
National	IRPF	Incomes in general	18% - 40 %	From May to June	Bank or AEAT	100
National	IVA	VAT	4%-16%	Quarterly	Bank or AEAT (1)	303
National	IVA	VAT	4%-16%	Annual summary	AEAT	390
National	Retención IRPF	Income tax withholdings	7%-18%	Quarterly	Bank or AEAT (1)	110
National	Retención IRPF	Income tax withholdings	7%-18%	Annual summary	AEAT	190
National	Retención IRPF sobre arrendamientos de bienes inmuebles	Rent income tax withholdings	18%	Quarterly	Bank or AEAT (1)	115
National	Retención IRPF sobre arrendamientos de bienes inmuebles	Rent income tax withholdings	18%	Annual summary	AEAT	180
National	Social Security contribution	Self Employed Social Security	Variable	Monthly	Direct debit or Bank	Handed by the Social Security office

SPANISH RESIDENT COMPANIES TAXES NON PERIODIC TAXES
TAX LEVEL	TAX NAME	TAXABLE EVENT	TAX RATE	TAX SUBMISSION	WHERE?	MODEL / FORM
Autonomous Community	ITP/AJD (2)	Premises purchase taxes	0%-7% of the Purchase price	Up to 1 months after the Title Deed signature	Bank	600
Autonomous Community	ISD	Inheritance and Donations tax	Variable	Up to 6 months after the taxable event takes place	Bank or autonomous regional office	650 (Inheritance) 651 (donations)
Local	IBI(2)	Property tax	Variable. Based on the cadastral value	Half yearly or Yearly	Bank or local gov´nt office	Handed by the town council
Local	Basura y Alcantarillado (BS) (2)	Municipal maintenance and rubbish tax	Variable. Depends on the Town Council	Half yearly or quarterly	Bank or local gov´nt office	Handed by the town council
Local	IVM	Motor Vehicle tax	Variable. Depends on the Town Council	Yearly	Bank or local gov´nt office	Handed by the town council

NON RESIDENTS

INDIVIDUAL SPANISH NON-RESIDENTS TAXES (PERSONAS FÍSICAS – NO RESIDENTES) PERIODIC TAXES
TAX LEVEL	TAX NAME	TAXABLE EVENT	TAX RATE	TAX SUBMISSION	WHERE?	MODEL / FORM
National	IRNR	Real Estate Properties Property Rents (Owners)	24%	From January to December (1 Property) From May to June (More than 1 Property)	Bank	210
Local	IBI(2)	Property tax	Variable. Based on the cadastral value	Half yearly or Yearly	Bank or local gov´nt office	Handed by the town council
Local	Basura y Alcantarillado (BS) (2)	Municipal maintenance and rubbish tax	Variable. Depends on the Town Council	Half yearly or quarterly	Bank or local gov´nt office	Handed by the town council
Local	IVM	Motor Vehicle tax	Variable. Depends on the Town Council	Yearly	Bank or local gov´nt office	Handed by the town council

INDIVIDUAL SPANISH NON-RESIDENTS TAXES NON PERIODIC TAXES
TAX LEVEL	TAX NAME	TAXABLE EVENT	TAX RATE	TAX SUBMISSION	WHERE?	MODEL / FORM
National	IRNR	Capital Gain Taxes	18%	Up to 4 months after the property selling deeds signature	Bank or AEAT	212
Autonomous Community	ITP/AJD (2)	Premises purchase taxes	0%-7% of the Purchase price	Up to 1 months after the Title Deed signature	Bank	600
Autonomous Community	ISD	Inheritance and Donations tax	Variable	Up to 6 months after the taxable event takes place	Bank or autonomous regional office	650 (Inheritance) 651 (donations)

Bank if payment is due and AEAT if there is a tax refund
If owner of a real estate property

NON RESIDENT COMPANIES PERIODIC TAXES
TAX LEVEL	TAX NAME		TAXABLE EVENT	TAX RATE	TAX SUBMISSION DEADLINE	WHERE?	MODEL / FORM
National		IRNR	Real Estate Properties Property Rents (Owners)	0% - 3 %	January	Bank or AEAT	213
Local		IBI(2)	Property tax	Variable. Based on the cadastral value	Half yearly or Yearly	Bank or local gov´nt office	Handed by the town council
Local		Basura y Alcantarillado (BS) (2)	Municipal maintenance and rubbish tax	Variable. Depends on the Town Council	Half yearly or quarterly	Bank or local gov´nt office	Handed by the town council
Local		IVM	Motor Vehicle tax	Variable. Depends on the Town Council	Yearly	Bank or local gov´nt office	Handed by the town council

NON RESIDENT COMPANIES NON PERIODIC TAXES
Autonomous Community	ITP/AJD (2)	Premises purchase taxes	0%-7% of the Purchase price	Up to 1 months after the Title Deed signature	Bank	600
Autonomous Community	ISD	Inheritance and Donations tax	Variable	Up to 6 months after the taxable event takes place	Bank or autonomous regional office	650 (Inheritance) 651 (donations)

Some tax exceptions and tax liabilities exceptions may apply on certain incomes and/or due to tax agreements with other countries.

For further information regarding income, income tax withholdings, tax liabilities, tax agreements and tax exceptions, please do not hesitate to contact us for free advice and consultation to web@costaluzlawyers.es

Written by: Maria de Castro

About the author:

Maria de Castro is a Spanish Lawyer and the Director of the Law Firm www.costaluzlawyers.es.

Costa Luz Lawyers are contract and consumer real estate law specialists covering all parts of Spain. You can contact Maria at mldecastro@costaluzlawyers.es

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Comments:

Jono1 said:
Thursday, June 30, 2011 @ 9:30 AM

My wife and myself are resident and retired in Spain. We pay UK tax on pensions and property we own in UK. We own our own property in Spain and have no mortgage. What other taxes (apart from IBI & BS) must we pay in Spain?

SUDIS said:
Thursday, February 18, 2010 @ 8:18 PM

pLEASE CAN YOU EXPLAIN SOMETHING TO ME, I AM A RESIDENT IN SPAIN,RETIRED, MY PENSION IS FROM THE UK SO TAXED AT SOURCE,I OWN A PROPERTY WHICH IS MY ONLY RESIDENCE AND HAVE A SMALL AMOUNT IN MY BANK ACCOUNT, WHAT TAXES SHOULD I PAY AND WHY. THANKYOU

snairb said:
Friday, July 17, 2009 @ 9:54 PM

excellent summary of spanaidsh taxes and no sign of selling anything-
tip as i am pedantic delete "handed " insert "handled"
also very important for uk citizens "Renta Vitalicia" any body who took out a pension before 1988 would benefit significantly by becoming a spanish resident

nicyrona said:
Thursday, July 16, 2009 @ 9:18 AM

Very interesting, but what doe residents surviving on UK state pensions need to know

petern said:
Wednesday, July 15, 2009 @ 11:24 PM

no mention of age criteria changing the tax rate for individuals

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Resident And Non Resident Taxes In Spain

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