Spain Explained

A guide for foreigners on every aspect of safe property ownership in Spain

Posts filtered by Tax requirements in Spain

Wealth tax in Spain: Rates, allowances and recommendations


What is the Wealth tax in Spain? The wealth tax, or patrimonio, is something that many people are caught out by as it has no equivalent in several other European countries. Although there was a 100% discount in 2009, now, if you have worldwide assets of over €700,000, you are liable for wealth tax of […]

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Being a resident in Spain: requirements and tax obligations


Unlike what many expat forums and Facebook pages would have you believe, you can’t simply choose whether or not you are a tax resident of your home country or Spain. Who is classed as resident in Spain? The rules are actually very clear cut – if you live in Spain for more than 183 days […]

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Non resident property tax in Spain

Non resident property tax in spain

What often confuses non-residents is that there is more than one tax to pay. Most people understand that there will be some form of council tax in Spain that will need to be paid annually. In addition to this, however, non-residents must also pay either: Rental income tax if they rent out their property Imputed […]

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Retiring in Spain? Read our quick guide to tax in Spain for residents

guide to tax in Spain for residents

Retirement in Spain is still a very popular choice. When better to take advantage of Spain’s beautiful climate and perfect pace of life than when you have the time to really enjoy it? However, what you don’t want whilst you are enjoying your new lifestyle are worries about tax or documentation in a foreign country. […]

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Spanish tax forms all foreigners should be aware of


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. In this article we outline some of the Spanish […]

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Do you pay tax when you sell your house in Spain?

o-you-pay-tax-when-you sell-your-house-in-spain

When people are selling their property in Spain, they wonder, “do you pay tax when you sell your house?” Generally, this type of taxation falls under capital gains tax (CGT), which can cause confusion. Capital gains tax applies in most countries when you sell a property. In essence, CGT is a payment on the profit […]

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Calculating capital gains tax in Spain when selling your property


Capital gains tax is applied in most countries and Spain is no exception. Essentially, capital gains tax is a levy imposed on the sale of a non-inventory asset, that is, a capital asset that’s not likely to be liquidated into cash within a year. The most common capital gains are profits earned from the sale […]

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Tax on rental income as a British non-resident in Spain


British nationals are by far the largest group of foreign homeowners in Spain. Many keep their property as a holiday home or only live there part time, either renting their property to other holiday makers or long term tenants for some of the year. For many, this is a valuable source of income. However, as […]

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IBI in Spain: What is it and how to pay


If you’ve bought a property, you’ve likely come across IBI in Spain. This tax is basically Spain’s equivalent of council tax.  Impuesto sobre Bienes Inmuebles, or IBI, is a tax that every property owner in Spain has to pay. Either your local town hall or SUMA offices will collect the payment, which they use to […]

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All you need to know about non-resident tax in Spain

Non-resident tax in Spain

For many non-residents in Spain, the deadline for tax returns will be here by the end of the year. Non-resident tax in Spain amounts to a complicated time for many, so we at Ábaco Advisers try to answer some of your questions.  Which non-resident tax in Spain will I have to pay? There are two […]

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Taxes in Spain: What do you need to pay as an expat?


If you live in Spain for more than 183 days per calendar year, then you’re considered resident – which means you’ll have to pay taxes in Spain. Residency isn’t a matter of choice, as some threads on expat forums will have you think. Plus, the 183 days need not be sequential – so it’s not […]

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What you can and can’t be taxed on in spain

One thing you will soon become familiar with if you spend time in Spain are the range and variety of taxes. Most of them are the same as you would expect in your home country. However, one or two might take you by surprise. Like all countries, public services in Spain are paid for through […]

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Did you miss the non-resident tax declaration deadline?

December 31st was the deadline for the non-resident tax declaration. This is the form that every non-resident is required to complete annually. It’s a busy time of year and so it isn’t surprising that it can fall off the list of To-Dos. If this applies to you there’s no need to panic. It is possible […]

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Renting in Spain – the tax implications


Renting is a good option if you are looking to make some money out of a property you have bought in Spain. Whether it is a short term or long term let, renting is increasingly popular and many different types of property are in demand. Some people choose to do all the paper work themselves […]

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Demystifying the valor catastral


Like most countries, you must pay council tax in Spain. But what is it and how is it calculated?  In this article Linda Robertsson Posada, from the fiscal department, explains IBI and the role that the valor catastral has to play. We all know that whatever country we buy in there will be property taxes […]

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Making a resident tax declaration

If you are a resident in Spain then it is very likely that you will have to make a resident tax declaration annually. This declaration or tax return provides evidence of your income in Spain that can be used for a number of reasons, including determining your prescription charges. The process is quite straight forward […]

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Time for the Spanish 720 again


It’s two years ago that foreigners living in Spain were first introduced to the 720 asset declaration form. In case you are blissfully unaware, the 720 is a form on which foreigners living in Spain must record assets of a specified value and type held in other countries. Over the years there has been some […]

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New Spanish tax law for 2015


The new tax legislation in Spain has been debated for a while. Originally proposed in June 2014 it has now been passed and will come into force from the income year 2015. The new law brings with it implications for both residents and non-residents. In most cases the reduction in tax rates will be welcomed. […]

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Myth busting – Spanish complementary tax


We’ve recently been reading letters in some well-known free papers from people who really have got their facts wrong. Nothing new there may be, but we feel that some of the myths around complementary tax, if you believe them, could cost you a lot of money. We want to put you straight. When you buy […]

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Changes to Spanish capital gains tax


It’s perhaps a symptom of government austerity that taxation is a particular target for change. It is one of the best means of increasing revenue but must also be handled carefully if your electorate are not to be upset as an election year approaches. As the Spanish government has the ballot box in its sight […]

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Proposals for capital gains tax in the UK


It might come as a surprise to know that in the UK, until now, capital gains tax (CGT) wasn’t payable by non-residents when selling property there. This is perhaps one reason why house prices in London have risen to such exorbitant levels. They have become a guaranteed source of investment, with prices rising annually and […]

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Will you benefit from the tax reform?


A draft Spanish tax reform law was approved on the 20th June. The new reforms were proposed by the finance minister Cristobal Montoro at a meeting of the Council of Ministers and are intended to be introduced by January 2015. They include: Reduction in income tax for people earning less than €12,450 a year from […]

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Bringing your Spanish paperwork up to date


So, here we are in Spring. If you live on the Costa Blanca or have spent much of the past few months out here, you will perhaps feel that winter passed us by this year. Now, we have the promise of all the spring and summer to come but aren’t yet wilting under the intense […]

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Tax, tea and travel in Mazarrón

It’s an important time of the year for residents in Spain. The end of March is the deadline for those who have to present the 720 this year and the 30th June is the deadline for the annual resident tax declaration. We know that many people continue to have questions they want to ask about […]

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Tackling Spanish paper work


If you are a resident, living in Spain, how did you approach Spanish paper work: no time like the present – I tackled it straight away and got everything done as soon as I could poco a poco – no rush I just took one piece of paper at a time what paper work? Presuming […]

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