Common questions about Spanish taxation

Residency involves multiple factors, without one absolute rule. The primary criteria are physical presence (exceeding 183 days annually) and whether the main centre of your economic or professional activities is located in Spain. Having a spouse or dependent children residing there may also indicate residency status.

In theory, yes, if you meet both countries' residency criteria at once. But Spain has double-taxation treaties with many countries that set tie-breaker rules, such as where you have a permanent home or the centre of your vital interests, to determine which country you're taxed as a resident in. It's worth checking the specific treaty with your home country before assuming you can simply choose where to file.

The biggest change is that you move from being taxed only on Spanish-sourced income, as a non-resident, to being taxed on your worldwide income: salary, rental income, investments or businesses in any country. You also take on additional reporting obligations for assets held abroad. It's worth planning ahead rather than discovering this at filing time.

Non-residents must still satisfy certain Spanish tax requirements. Non-residents are generally required to pay taxes in Spain on specific types of income or assets sourced in Spain, with obligations varying by income type.

Yes. The NIE (Foreigner Identity Number) is the number that identifies you for tax purposes in Spain, and you'll need it for almost everything: opening a bank account, signing a lease or a purchase, registering as self-employed, or taking up employment. It can be requested before travelling, at a Spanish consulate, or once you're in Spain. More in our guide to moving to Spain.

It's registration on the municipal roll of your place of residence in Spain. It proves where you live and is a prerequisite for things like public healthcare, enrolling children in school, or, in many cases, the residence card itself.

Non-residents pay the same purchase taxes as residents. On a resale property, you pay Transfer Tax (ITP), which varies by region: for example, 6% in Madrid, 7% in Andalusia, up to 10-11% in Catalonia. On a new-build bought from the developer, you pay 10% VAT plus Stamp Duty (AJD), between 0.5% and 1.5% depending on the region. More in Real Estate Investment.

It depends on where you live. If you're resident in the EU, Iceland, Norway or Liechtenstein, you're taxed at 19% on net income, with deductible expenses. Other non-residents are taxed at 24% on gross income, generally without being able to deduct expenses. More in Real Estate Investment.

It represents a property's assessed valuation for tax purposes, determined by local authorities considering location, size and market conditions.

It appears on your Real Estate Ownership Tax receipt (IBI), displaying the total property value alongside separate land and construction valuations.

It's a local tax on the increase in value of urban land when you sell it. Since the 2021 reform, it's calculated using whichever method is more favourable to the taxpayer: the objective method (cadastral land value multiplied by a coefficient based on years of ownership) or the real method (the difference between the sale and purchase value). If there was no increase in value, the transfer isn't subject to the tax.

IRPF is progressive and combines a state scale with a regional one, so the top marginal rate varies depending on where you live: from around 45% in Madrid up to 54% in the Valencian Community. The exact rate depends on your income level and the deductions that apply to you. More in Working in Spain.

Since 2023, self-employed workers contribute based on 15 bands of actual net income rather than a flat fee: the minimum monthly contribution ranges from around 205€ to 607€ depending on the band. Those starting out can apply for the flat rate: officially 80€/month, but around 88.64€/month in practice once the Intergenerational Equity Mechanism (MEI) is included, during their first year. On top of that comes IRPF, paid via quarterly instalments, and VAT where it applies.

The Complete Reference Number (known as NRC in Spanish) is a reference number used in banking transactions to uniquely identify and track a specific payment or transfer.

The general rate is 25%. Reduced-size companies, with revenue between €1M and €10M, are taxed at 23%; microenterprises, with revenue under €1M, apply a progressive scale from 17% to 20% depending on taxable income. Newly created companies benefit from a reduced 15% rate for their first two profitable years. More in Starting a Business.

It depends on your activity, your expected revenue and your appetite for risk. As a self-employed person you're personally liable with your own assets, but the process is simpler; a limited company limits your liability to the capital contributed, but comes with more accounting and administrative obligations from day one. There's no single right answer, it's worth assessing case by case before you start. More in Starting a Business.

It includes bookkeeping in accordance with the Spanish General Accounting Plan, periodic tax filings (VAT, withholdings and Corporate Income Tax) and preparing and filing the annual accounts with the Commercial Registry. It's a continuous, month-to-month service, not just the initial company formation. More on Business Accounting & Tax Compliance.

It's a special tax regime for people relocating to Spain for work. It applies to employees with a Spanish contract (including remote workers on the Digital Nomad Visa), company directors, qualified professionals working for emerging or innovative businesses, and entrepreneurs carrying out an activity of special economic interest. A key requirement is not having been a Spanish tax resident during the previous five tax years. More in Beckham Law.

The regime lasts six years: the year of arrival plus the following five. During that period, Spanish-sourced income up to €600,000 is taxed at a flat 24% (the excess at 47%), and income earned outside Spain isn't taxed in Spain under this regime. The application is made using form 149, within six months of starting the employment relationship.