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Taxes for Foreigners in Spain

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Spanish Taxes for Foreigners

Tax Guide for Foreigners: Non-residents and Tax Residents

At Get your Spanish visa we provide you with specialized advice to ensure that you comply with all tax obligations and optimize your tax situation. Below, we explain the key aspects of taxation for non-residents and tax residents in Spain.

Taxes for Non-Resident Foreigners

A non-tax resident is considered to be a person who does not spend more than 183 days in a calendar year in Spain or whose base of economic activities and center of vital interests is not in the country.

Main Taxes for Non-Residents

  • Non-Resident Income Tax (IRNR):
    • Rental Income: If you own a property in Spain that you rent out, the rental income is subject to IRNR. The general tax rate is 24%, although for EU and EEA residents, a reduced rate of 19% applies.
    • Property Sales Income: Gains from the sale of property in Spain are subject to a 3% withholding tax on the sale price, which can be adjusted when filing the final capital gains tax return.
  • Property Tax (IBI):
    • All property owners in Spain must pay the IBI, a municipal tax based on the cadastral value of the property.
  • Non-Resident Income Tax on Earned Income:
    • If you work in Spain but are not a tax resident, your employment income is subject to a rate of 24% up to 600,000 euros. For higher incomes, progressive rates apply.

Taxes for Tax Residents

If you are considered a tax resident in Spain, that is, you spend more than 183 days a year in the country or your main economic interests are in Spain, your global income is subject to tax.

Main Taxes for Tax Residents

Personal Income Tax (IRPF):

Global Income:

  • As a tax resident, you are required to declare and pay taxes on your global income, including wages, pensions, rental income, and capital gains. Personal income tax has progressive rates that vary from 19% to 47%, depending on the income level.
    • Deductions and Allowances:
  • Tax residents can benefit from various deductions, such as for home purchases, contributions to pension plans, and family situations.

Wealth Tax:

This tax is levied on the net value of the total assets of tax residents in Spain. There are exemptions and the minimum exemption varies by each autonomous community.

Inheritance and Gift Tax:

Inheritances and donations received are subject to taxes, with rates that vary depending on the relationship between the donor and the recipient and the autonomous community.

Property Tax (IBI)

Like non-residents, tax residents must also pay IBI on any property they own in Spain.

Contact us

If you are interested in obtaining more information and need professional advice to manage the entire process, do not hesitate to contact us. Our team of experts is here to help you make your dream of living in Spain come true without complications.
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