Expat Tax Guide Spain

Becoming a Spanish Tax Resident

As an expat, you become a Spanish tax resident once you spend more than 183 days in a calendar year in Spain, or if Spain becomes the center of your vital interests (where your family lives) or economic interests (where you earn most income).

The 183-day count doesn't need to be consecutive - all days spent in Spain during the year are counted. Short trips abroad don't stop the clock.

Once you're a tax resident, Spain taxes your worldwide income - not just Spanish-sourced income. This is a significant change from non-resident status.

First Year Considerations

In your first partial year, you might qualify for split-year treatment under tax treaty provisions, allowing you to be taxed as a non-resident for part of the year.

You'll need to obtain an NIE (foreigner identification number) from Extranjería and register with the local town hall (empadronamiento) - both are needed for tax purposes.

Consider the Beckham Law if you're coming for work - it offers a flat 24% tax rate for up to 6 years. You must apply within 6 months of starting work through the Agencia Tributaria.

Annual Tax Filing (Modelo 100)

Spanish tax residents file an annual income tax return (Declaración de la Renta) between April and June each year through Renta Web.

Include all worldwide income: salary, rental income, investments, pensions, etc. Foreign income is taxable even if already taxed abroad.

Tax credits are available for taxes paid in other countries to avoid double taxation. Keep all foreign tax documentation.

Foreign Assets (Modelo 720)

If you have assets abroad worth more than €50,000 in any category (bank accounts, investments, or property), you must file Modelo 720 by March 31 each year.

This is an informative declaration - it doesn't mean you pay additional tax. But failure to file can result in penalties.

Most expats need to file this in their first or second year of residency.

Common Expat Deductions

Pension contributions: Deduct up to €1,500 per year for private pension plans.

Donations: Charitable contributions to Spanish-registered charities are deductible.

Regional deductions: Many autonomous communities offer deductions for school fees, rent, and other expenses.

Moving expenses: In some cases, relocation costs may be partially deductible.

Leaving Spain

If you leave Spain, you stop being a tax resident when you establish residency in another country and spend fewer than 183 days in Spain.

You may need to file an exit tax return for the year you leave. Consider the tax implications before timing your departure.

If you keep Spanish property, you'll need to file as a non-resident going forward.