Personal Income Tax (IRPF) and Taxes for Foreign Residents in Spain

How do you know if you’re a tax resident in Spain?

The Spanish tax authorities consider you a tax resident if you meet at least one of the following conditions:

• You spend more than 183 days in Spain per year (that’s over six months).
  • Occasional absences still count unless you can prove that you officially reside in another country.
  • If you’re coming from a tax haven, Spain may require stricter proof that you haven’t spent enough time in the country.
• Your main source of income or economic interests are in Spain.
  • This applies if you work in Spain, own a business, or have significant investments here.
• Your immediate family lives in Spain.
  • If your spouse (unless legally separated) and/or minor children reside in Spain, the tax office will assume you do too—unless you can prove otherwise.

If you meet any of these criteria, you’ll likely be considered a tax resident in Spain.

What if you’re not a tax resident?

If you don’t meet the criteria mentioned above, you’ll be considered a non-resident for tax purposes. This means:

• You’ll only pay taxes on income earned in Spain.
• Your taxes will be handled through the Non-Resident Income Tax (IRNR).
• The tax process is usually simpler, with fixed rates, but without the deductions available to residents.

Other Taxes That Affect Foreign Residents in Spain

Beyond Personal Income Tax (IRPF), if you’re a foreigner living in Spain, you may also be subject to other taxes depending on your financial and personal situation. Here are some of the most relevant ones:

1. Wealth Tax (Impuesto sobre el Patrimonio – IP)

If you have a high net worth, you may need to pay this tax. It applies to assets and rights both in Spain and abroad (if you are a tax resident).

• It applies to net assets exceeding €700,000 (although the exemption threshold varies by region).
• Your primary residence is exempt up to €300,000.
• Non-residents only pay tax on assets located in Spain.

👉 Example: If you own a property in Spain worth €1 million and another abroad, you may need to declare both if you are a tax resident.

2. Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes – IRNR)

If you are not a tax resident but earn income in Spain, you will be taxed under this system.

• It applies to rental income, employment income, business activities, and capital gains.
• The general tax rate is 24% (or 19% if you’re a resident of the EU, Norway, or Iceland).

👉 Example: If you live abroad but rent out an apartment in Spain, the Spanish tax office will apply IRNR on that income.

3. Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones – ISD)

If you receive an inheritance or a gift in Spain, you may be liable for this tax.

• The tax rate depends on the region where the inheritance or gift is received.
• It applies to both residents and non-residents receiving assets in Spain.

👉 Example: If you inherit a property in Madrid, you will need to pay inheritance tax, though there may be deductions depending on your relationship with the deceased.

4. Property Tax (Impuesto sobre Bienes Inmuebles – IBI)

If you buy property in Spain, you must pay IBI every year.

• This is a municipal tax based on the cadastral value of the property.
• Rates vary by location but typically range between 0.4% and 1.3% of the cadastral value.

👉 Example: If you buy a house in Barcelona, you’ll receive an annual bill for the IBI tax.

Special Cases: The «Beckham Law» and Other Tax Regimes

If you move to Spain for work under an employment contract, you may qualify for the «Beckham Law» or «Inbound Worker Regime».

This special tax scheme allows you to pay a flat 24% tax rate for the first 6 years, but only on income earned in Spain. To qualify, you must:

• Not have been a tax resident in Spain for the last 10 years.
• Have a job contract in Spain.

This regime is particularly attractive for executives and expatriates, as it significantly lowers their tax burden compared to the standard tax rates for residents, which go up to 47%.

If you want to see how much you could save, try our Beckham Law Tax Calculator here.

FAQs

You’re just a scroll away from clarity.

Spain considers you a tax resident if you spend more than 183 days in the country within a calendar year. But how exactly are these days counted?
– All days in Spain count, including weekends, holidays, and short trips within the country.
– Temporary absences also count unless you can prove that you were officially residing in another country.
– If you come from a tax haven, the Spanish tax office may require stricter proof that you didn’t stay in Spain for more than 183 days.

If you are considered a tax resident in Spain, you must declare all your income worldwide, regardless of where it was earned. However, this doesn’t always mean you’ll be taxed twice. Here’s what you need to know:
1. Double Taxation Agreements (DTAs)
Spain has agreements with many countries to avoid double taxation, meaning you won’t have to pay tax on the same income in both places.
Typically, you pay tax in the country where the income was generated and then offset that amount when filing your tax return in Spain.
2. Types of Foreign Income and How They Are Taxed
Salary from a foreign company → If you work remotely for a company abroad but reside in Spain, you generally must declare your income in Spain and may need to pay social security contributions here.
Rental income from properties abroad → You must include it in your Spanish tax return, but you can deduct certain expenses and apply treaty benefits if a DTA exists.
Dividends, interest, and capital gains from foreign investments → These are taxable in Spain, though withholding tax paid abroad can often be deducted.
Pensions from abroad → Taxation depends on the pension type and the country paying it. Some pensions are taxed only in the source country, while others must be reported in Spain.
3. Foreign Asset Reporting (Modelo 720)
If you have over €50,000 in foreign assets (bank accounts, investments, or property), you must report them using Modelo 720.
Failing to declare these assets can result in heavy penalties, even if no additional tax is due.

The tax rate depends on the type of income you earn in Spain. Here’s a breakdown of the most common cases:
– Employment income → If you work in Spain as a non-resident, you pay a flat 24% tax on your earnings. However, if you’re a tax resident of the EU, Norway, or Iceland, the rate is reduced to 19%.
Rental income →Non-EU residents pay a 24% tax on rental income, with no deductions allowed.
– EU, Norwegian, and Icelandic residents pay 19%, and they can deduct expenses such as maintenance, mortgage interest, or property management fees.
. Dividends, interest, and capital gains → Taxed at a fixed 19% for non-residents.
– Pensions → Taxation depends on the double taxation treaty between Spain and your country. Some pensions are taxed only in the country of origin, while others are subject to Spanish taxation.

Preguntas frecuentes sobre impuestos para residentes extranjeros en España

Resolvemos las dudas más comunes sobre fiscalidad para extranjeros que viven o planean vivir en España.

¿Qué extranjeros residentes deben presentar la declaración de la renta en España?

Depende de si se te considera residente fiscal en España. Si eres residente fiscal, deberás tributar por todos tus ingresos mundiales, sin importar dónde los hayas obtenido. Si eres no residente, solo pagarás impuestos por los ingresos generados en territorio español. La clave está en cumplir ciertos criterios como pasar más de 183 días al año en España, tener aquí tu principal fuente de ingresos o que tu familia inmediata resida en el país.

¿Cómo sé si soy residente fiscal en España?

Las autoridades fiscales españolas te consideran residente fiscal si cumples al menos una de estas condiciones: pasar más de 183 días al año en España (más de seis meses), tener tu principal fuente de ingresos o intereses económicos en España, o que tu cónyuge (salvo separación legal) y/o hijos menores residan en España. Las ausencias ocasionales también cuentan como días en España, a menos que puedas demostrar que resides oficialmente en otro país.

¿Qué pasa si tengo ingresos en el extranjero siendo residente fiscal en España?

Si eres residente fiscal en España, debes declarar todos tus ingresos mundiales, independientemente de dónde se hayan generado. Sin embargo, esto no significa que pagarás impuestos dos veces. España tiene convenios de doble imposición con muchos países que te permiten compensar los impuestos pagados en el extranjero. Además, si tienes más de 50.000€ en activos en el extranjero (cuentas bancarias, inversiones o propiedades), deberás declararlos mediante el Modelo 720.

¿Cuánto pagan de impuestos los no residentes en España?

Los no residentes pagan un tipo fijo del 24% sobre sus ingresos en España. Sin embargo, si eres residente fiscal de la UE, Noruega o Islandia, el tipo se reduce al 19%. Para ingresos por alquiler, los residentes de la UE pueden deducir gastos como mantenimiento o intereses hipotecarios, mientras que los no residentes de fuera de la UE no pueden aplicar deducciones. Los dividendos, intereses y ganancias de capital tributan al 19% fijo para no residentes.

¿Qué es la Ley Beckham y quién puede beneficiarse?

La Ley Beckham, o Régimen Especial de Trabajadores Desplazados, permite pagar un tipo fijo del 24% durante los primeros 6 años, pero solo sobre los ingresos obtenidos en España. Para poder acogerte a este régimen, no debes haber sido residente fiscal en España durante los últimos 10 años y debes tener un contrato laboral en España. Es especialmente atractivo para ejecutivos y expatriados, ya que reduce significativamente la carga fiscal en comparación con los tipos estándar para residentes, que pueden llegar hasta el 47%.

¿Qué otros impuestos afectan a los extranjeros residentes en España?

Además del IRPF, los extranjeros en España pueden estar sujetos a varios impuestos: el Impuesto sobre el Patrimonio (IP) si tu patrimonio neto supera los 700.000€, el Impuesto sobre la Renta de No Residentes (IRNR) si generas ingresos en España sin ser residente fiscal, el Impuesto sobre Sucesiones y Donaciones (ISD) si recibes una herencia o donación en España, y el Impuesto sobre Bienes Inmuebles (IBI) si posees una propiedad, con tipos que oscilan entre el 0,4% y el 1,3% del valor catastral.

Conclusion: Do You Need to File a Tax Return in Spain?

If you’re a tax resident in Spain, you must declare all your income, no matter where it comes from. If you’re a non-resident, you’ll only be taxed on income earned in Spain.

Determining your tax residency can be tricky, so if you’re unsure, it’s best to consult a tax expert.

At TaxDown, we make filing your tax return easy, accurate, and stress-free. Run a free simulation and find out how much you can save by applying all available deductions. Don’t overpay—sign up now at TaxDown!