Tax in Spain

spanish income tax

Now that you are living in Spain and are now spanish tax resident your liability to income tax changes. Non residents are generally liable to spanish income tax on assets located in Spain but as a tax resident you are liable to spanish income tax on a worldwide basis.

spanish income tax is charged on a sliding scale. The tax rate is between 24% and 43% depending .

There are a number of allowances available to reduce your liability to spanish income tax, including aged dependents, disabilities, single parent families.  Also, allowances available for the purchase costs and mortgage repayments on the taxpayer's main residence.

Capital gains tax

spanish capital gains tax is charged at a flat rate of 18% irrespective of residence.

spanish wealth tax (Impuesto sobre el patrimonio)

spanish wealth tax applies on the ownership of assets less any allowable charges or debts. Therefore

wealth tax is calculated on the net wealth of an individual. Assets liable to the tax include immovable

property, cars, cash, shares, jewellery etc, charges allowed to reduce this include properly registered mortgages, charges and loans.

Inheritance tax/gifts tax

The above tax is assessed on the recipient (the heir). spanish resident Heirs are generally liable to pay tax on everything, where as non resident heirs  are taxed only on spanish situs assets.

Gifts Tax

The rules are the same as for inheritance tax, but there are no allowances available with gifts tax, (other than for the family business allowance).

Click Here to download a spanish Tax Guide.