Last updated on April 5th, 2023 at 09:59 am.
Living in Spain brings with it fantastic opportunities to enjoy a different culture, climate and pace of life. Whatever stage of life you are at, it is a rewarding experience. When moving to another country, though, one must be aware of the tax procedures in place.
We would like to remind you that taxation in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. Advisably, you should seek fiscal advice from an expert to avoid possible complications.
In this article we outline some of the Spanish tax forms you will need to complete, how to do so and the implications for not doing so.
Spanish tax forms
Modelo 30 – where it all begins
This is the first Spanish tax form you will complete on arrival in Spain. It registers your intention to continue paying tax as either a resident or non-resident. This must happen within 30 days of your arrival. Form here.
Modelo 100 – Tax return
Every resident of Spain needs to complete this income tax statement within their first year. Thereafter, it only needs to be completed for earnings over €12,000 a year if your situation complies with certain conditions. Here you will find the form.
Modelo 210 – Non-resident imputed income tax and rental tax
Non-residents in Spain will need to pay a percentage of their income to the state for property owned that has been constructed on. The current rate for EU members for this tax is 19% and 24% for non-EU members. You can find the form here and instructions for completion
Modelo 720 – one of the most important Spanish tax forms
There is an important tax form that all citizens of Spain and all foreigners residing in Spain that hold assets in another country are required to complete. The Modelo 720 form form outlines what, if any, assets are held outside of the country. The contents revealed on the form are for information and fraud detection purposes only. The signatory is not liable to pay any extra tax on the basis of this form. The form is essential and you could be subject to large fines for failure to complete it.
The form has a deadline of between the 1st January and 31st March of the year following the information represented. The purpose of the form is to declare any assets owned outside of Spain with a value greater than €50,000. Unless your circumstances change, such as in an increase in earnings, then you will not have to submit the form again. This applies only if the value of the asset increases by at least €20,000 or closes. Otherwise, you only need to submit the form once.
Which kinds of accounts or assets should be declared?
There are three main criteria of who should complete the form:
- People who hold bank accounts abroad – Bank, deposit and savings accounts with a balance greater than €50,000 that are held in the name of the person completing the form. This also applies where the signatory is an authorised representative or beneficiary of the account.
- People who hold assets and private pension funds abroad – Those who hold bonds, investment portfolios, stocks and shares, pension plans and active annuities over the value of €50,000 will need to complete the modelo 720.
- People who own a property or business abroad – Those who own property outside of Spain, include property for business purposes over the value of €50,000 must declare so on the modelo 720 form.
How should it be completed?
You can complete the form in English and other languages online here. Make sure you complete it within your first year of living in Spain or you could face expensive penalties.
Making sure Spanish tax forms are correct helps yourself down the line
Ensure that you have all of the necessary Spanish tax forms completed and up-to-date to enjoy your life in Spain to its best. To help navigate the bureaucracy of the Spanish tax system, our dedicated advisers are on hand to help at every step of the way. Contact us and we will offer you a free consultation without obligation.