Spanish Property : Property in Spain : Spanish Taxes : Tax in Spain

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Tax in Spain - Main Spanish Taxes
Income Tax - payable on worldwide income if resident in Spain, or if non resident in Spain, on income arising in Spain

Business Tax - paid by the self-employed once a year

Capital Gains Tax - payable on the profits made on the sale of property and other assets located in Spain

Company Tax - paid at a percentage of profits by partnerships and registered companies

Wealth Tax - payable on the value of worldwide assets if resident in Spain, or if not resident in Spain, payable on the value of Spanish assets alone

Inheritance and Gift Tax - payable on assets situated in Spain or assets passing to a beneficiary who is Spanish resident

Motor Vehicle Tax - paid annually by all vehicle owners

Offshore Company Tax - annual tax on offshore companies that don't declare the individual owner of property in Spain or the source of investment

Property Tax - paid by all property owners

Rubbish Collection - annual tax payable by all residents and non resident property owners

Social Security - isn't strictly a tax but is payable by employees and the self employed

Value Added Tax (IVA) - payable on a wide range of goods and services at varying rates

Tax - Self Employment Tax Return
If you are self-employed, you may fill in your own tax return.

The forms are available from the local Hacienda (Spanish tax office).

Tax returns should be made between 1 May and 20 June.

A Spanish accountant will require figures on a monthly rather than yearly basis.

Tax - Income Tax
Income tax is charged at rates between 15 and 45 percent.

You will be charged tax on your worldwide income, including interest earned from overseas bank accounts.

Rental income is also liable for income tax.

NIE - What is an NIE?
An NIE (numero de indentificacio) is a number identifying you to the Hacienda (the Spanish tax authority).

You will need an NIE:-

  • To work as an employee or to work self-employed
  • To open a telephone account
  • To purchase a car
  • To open an electricity account
  • To open a bank account
  • To purchase a property
  • There are also NIF and CIF numbers; these are fiscal or commercial identification numbers. Your NIF is your tax number which is issued from the Hacienda to both foreigners and Spanish nationals.

    It is the same as your NIE number, therefore having obtained your NIE, you have no need to apply for a NIF but some areas in Spain (because of immigration concerns) insist on a NIF (numero de identification fiscal).

    A CIF is issued to identify commercial entities ie. SL and SA (Limited Liability and Public) Companies.

    Tax - How long can I spend in Spain before I am liable for Spanish taxes?
    If you spend more than 183 days in Spain in one calendar year, you will be classified as a resident for tax purposes and will become liable for Spanish taxes on your worldwide assets.

    The Spain/UK double tax agreement stating that if you spend time in both countries the clause will come into effect to determine where you will be taxed. You will not be expected to pay double.

    However, as the Spanish tax year runs from January to January and the British tax year runs from April to April, if the months overlap when you are paying tax, you may pay double for these months during your first year.

    Obtain a refund of UK tax via the Inland Revenue.


    The information contained within is for general information and guidance only.
    For more specific advise, contact an expert on the specific subject matter or a solicitor.
    See today's Spanish property for sale at: www.spanish-property-today.com


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