Spanish Taxation on Residents
IRPF Direct Tax for Spanish Residents – Modelo 100 IRPF
If you have decided that we have to prepare your Spanish Tax Return, please, check before hand the compete list of documentaion that we will need to prepare your return, by clicking HERE
The Personal Income Tax (Impuesto sobre la renta de las personas físicas/IRPF) is a direct tax levied on the income of individuals on the same calendar year; You might deduct the taxes paid at source in another country, depending on the Double Taxation Treaty.
Within the IRPF, Modelo 100, you must report your worldwide income; you don’t have to file a Spanish tax return if your income from all sources is less than €8,000 and you have less than €1,600 of bank interest or investment income. Furthermore, the same applies if your rental income is less than €1,000 or you earn less than €22,000 as an employee or if you have more than one payer within the same year and your last employer paid you less than 1,500€ during the year.
If you are self-employ (Autónomos) your taxable income is determined as the difference between the income and the expenses; you must also report pensions and foreign pension, annuities, rents, interests, dividends and any capital gain you might have all over the world.
You must file the income tax return in Spain, from the first week of April to June 30th.
Tax Returns IRPF statements can only be submitted online. For some years, the AEAT (Tax Authorities) prepares a draft of the return so that the taxpayer can download it from its website; it usually includes everything that has been earned in Spain and the corresponding withholdings. It is usually available during the first week of April. You simply have to accept, online, your draft or modify any figure that you consider incorrect.
As in past years, the AEAT requires to validate every taxpayer with the issue or expiration date of your Spanish ID, or the support number depending on the type of ID you hold (DNI / NIE). Please send us the validation dates or support number according to this page
Taxpayers who have their habitual residence in Spanish territory are considered fiscal residents of Spain for tax porpoises, even if they have not obtained their residence permit.
If you are living and working in Spain, you will be liable to pay taxes in Spain on your income and assets and will need to file a Spanish tax return. Whether you pay Spanish taxes on your worldwide income, or Spanish-based income only, depends on your residency status.
It will be understood that the taxpayer has his habitual residence in Spanish territory, so he will be fiscal resident of Spain, when any of the following circumstances occur:
- That it remains more than 183 days, during the calendar year, in Spanish territory. To determine this period of stay in Spanish territory sporadic absences will be computed, unless the taxpayer proves his fiscal residence in another country.
- That in Spain lies the main core or the basis of its activities or economic interests, directly or indirectly. It shall be presumed, unless proof to the contrary, that the taxpayer has his habitual residence in Spanish territory when, in accordance with the above criteria, the spouse is legally not legally separated and the minor children who depend on it.
Spanish taxes for non-residents. Modelo 210
The Spanish Tax Agency (AEAT) establishes that the condition of non-resident can be accredited by providing a certificate of residence in another State issued by the tax authorities of that State and the term of validity of said certificates extends to only one calendar year. If you are a non-fiscal resident you only have to pay taxes over your Spanish source income. The general flat income tax rate for non-residents is 24% and 19%, if you are a citizen of an EU/EEA state.
Other income is subject to Spanish non-resident taxes as follows:
- Capital gains resulting from transferred assets are taxed at a rate of 19%.
- Investment interest and dividends are taxed at 19 percent, although are typically lower through double taxation agreements. Interest tax is exempt for EU citizens.
- Royalties are taxed at 24%.
- Pensionare taxed at progressive rates, from 8% to 40%.
If you a non-resident you should make your tax return on model 210.
Special Spanish tax for foreigners working on assignment. Beckham Law.
There is a special tax regime for foreigners coming to work in Spain on an employment contract with a Spanish company. This is sometimes known as ‘Beckham’s Law’ as it was allegedly set up so that soccer player David Beckham did not have to pay tax on his worldwide image rights when he came to play for Real Madrid in 2003.
Under this special regimen employment income will be taxed at a flat rate of 24%. The 24% tax rate applies to employment income up to €600,000 the excess will be taxed at the 45% tax rate. Spanish source capital income and capital gains will be taxed at flat tax rates, the first €6,000 € at a 19%, from €6,000 to €50,000 at a 21% and from €50,000 € at a 23% tax rate. Non-Spanish source capital income and capital gains will not be taxed. The 24% tax rate will be withheld monthly by the Company from your gross salary. Additionally, there is an obligation to file an annual tax return between April and June of the following year. Then you must file annualy Modelo 151, to apply use Modelo 149
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