Resident And Non Resident Taxes In Spain

Published on 15/07/2009 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:

  1. 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.

 

  1. 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)

    1. Bank if payment is due and AEAT if there is a tax refund
    2. 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)

    1. Bank if payment is due and AEAT if there is a tax refund
    2. 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:
30 June 2011 @ 09:30

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:
18 February 2010 @ 20:18

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:
17 July 2009 @ 21:54

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:
16 July 2009 @ 09:18

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


petern said:
15 July 2009 @ 23:24

no mention of age criteria changing the tax rate for individuals

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