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Contents<\/p>\n
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Spanish Residents<\/p>\n
Taxes in Spain<\/p>\n
The main taxes for resident individuals<\/p>\n
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You have decided to immigrate or relocate your business and\/or family to Spain. Such decisions entail many organizational issues: buying or renting a home, relocating or starting a business, finding new opportunities and acquaintances, learning the local culture and local laws. Not surprisingly, there is not much time left to carefully study the tax system of the country of your new residence. We have prepared for you the most important information that you need to know when immigrating to Spain, namely: <\/p>\n
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When will I be considered a tax resident?<\/p>\n
What counts as income?<\/p>\n
What are the main taxes for individuals?<\/p>\n
When do I have to start paying taxes in Spain?<\/p>\n
How much do I have to pay?<\/p>\n
How can I avoid double taxation?<\/p>\n
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Residents of Spain<\/p>\n
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When you move to Spain permanently, you automatically become an immigration resident and receive a temporary or permanent residence permit.<\/p>\n
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However, this does not mean that you automatically become a tax resident.<\/p>\n
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Spanish law determines that an individual is a tax resident if he or she meets one of the criteria laid down in the Personal Income Tax Law, namely:<\/p>\n
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A tax residence confirmation document is a tax certificate (fiscal certificate \u2013 an official certificate of tax residency) issued by the Tax Agency (Agencia Tributaria \u2013 Spain\u2019s tax administration). It is valid for 1 year. <\/p>\n
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A tax resident is obligated to pay taxes on income earned in any country worldwide.<\/p>\n
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To avoid double taxation, Spain has agreements with approximately 80 countries (Double Taxation Treaty, which determines where you pay the primary tax).<\/p>\n
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Tax residents are also required to notify the tax authorities about assets held abroad if their value exceeds \u20ac50,000, including:<\/p>\n
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Spanish Taxes<\/p>\n
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Although Spain is a unitary state, its territorial units (comunidad aut\u00f3noma) are quite autonomous.
Each autonomous community, and there are 17 of them, has the right to set its own tax obligations and rules. Thus, for example, the minimum amount not to be taxed or the property, wealth or gift tax exemptions may be different in each district. <\/p>\n
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The main taxes for individuals resident in Spain are as follows:<\/p>\n
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Personal Income Tax (IRPF) is calculated on a progressive scale (including national and average regional components):<\/p>\n
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Savings Income Tax (dividends, interest, capital gains):<\/p>\n
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Social Security Contributions:<\/p>\n
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Since 2025, an additional solidarity contribution has been introduced on the excess over the maximum contribution base: 0.92%\u20131.17%, shared between the employer and the employee.<\/p>\n
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Luxury tax in Spain, As we have written before, this tax may vary from county to county.<\/p>\n
This tax applies when the amount of assets of an individual exceeds 700,000 euros. Depending on the amount of assets, the luxury tax is calculated on a progressive scale from 0.2% to 3.5%.<\/p>\n
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Gift and inheritance tax.<\/p>\n
The general tax rate is from 7.65% to 34%, but the taxable base can be significantly reduced depending on the region and such factors as degree of kinship, age of the heir, disability and others.<\/p>\n
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Property tax \u2014 is paid annually by the owner, regardless of whether you receive rental income or not. In the case of the sale of property, the tax is paid by whoever owns the property as of January 1 of the current year.<\/p>\n
The amount of tax depends on the cadastral value and location and ranges from 0.4% to 1.3%.<\/p>\n
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Retirement Tax.<\/p>\n
According to Spanish law, a pension is income and is taxed at a progressive rate of 8% to 40%. If you are a tax resident in Spain but receive a pension in another country, you must notify the Spanish tax authorities and pay tax on that part of your income as well.<\/p>\n
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As of 2025, a tax exemption applies to recipients of the minimum wage (SMI), fully relieving them from paying personal income tax (IRPF).<\/p>\n
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Understanding that it is almost impossible to take into account all the nuances of the fiscal system in a new country without a perfect command of Spanish, we at Laduchi Consult always help our clients to understand the taxation issues in Spain. You can learn more about this in our client cases. If you have any questions about tax planning, business tax reduction, settlement of issues with tax authorities, we will always be happy to help you. <\/p>\n\n