Tax in Spain

The Government of the Community of Madrid has given the green light to what is known as the 'Mbappé Law', a regulatory change that aims to attract foreign investments, attract talent and facilitate the return of emigrants. Specifically, the bill contemplates a new deduction of 20% in the regional personal income tax quota for taxpayers who invest in public debt or shares, or make contributions to companies.

Submitting your tax return after the deadline, either voluntarily or as requested by the Spanish tax authorities, are situations that could be negative for you and result in significant fines and penalties. The tax authorities allow you to file your tax return after the deadline, but with consequences, although the size of the penalty will depend mainly on whether your omission affects you or the tax authorities.

When a non-resident sells property in Spain, they undergo a 3% retention which is practised on the sales proceeds.

Second homes are a significant part of the Spanish real estate market.

Filing your annual tax return in Spain can seem daunting, but don't worry! This guide will walk you through everything you need to know about the 2023/2024 tax season, including deadlines, what to include, and how to file.

Generally, whenever you want to renovate or carry out building work in your home, you need to apply for a building permit. Though some small renovations do not require any permit type, most do, and you must factor in this expense.

When buying or inheriting a property, the owner may be subject to a value assessment by the Tax Authorities, to check that they are paying enough tax for the property.

In Spain, as a taxpayer, one of our duties is to inform the Spanish tax authorities of our tax address if it changes.

The President of the Xunta de Galicia, Alfonso Rueda, announced, in the Debate on the State of the Autonomy, that his Government will reduce the Property Transfer Tax to 8% from 2024 and will automatically grant the "Tarxeta Benvida" to all households that meet the income requirements without needin

The president of the Generalitat Valenciana, Carlos Mazón, announced that the preliminary draft of the law accompanying the 2024 Budget includes tax relief for health and sports expenses and reduced Property Transfer Tax for buying a home, mainly for young people, but also for large families and gen

The exemption for reinvestment in a primary residence is a tax benefit widely used by taxpayers in Personal Income Tax (IRPF).

The entry into force of the new Cadastral reference value (contemplated in Spanish Law 11/2021 on measures to prevent and combat tax fraud) has ended one of the controversies that taxpayers had with the Treasury under the previous regulations.

This Monday, the Canary Islands Council of Government approved the 99.9% rebate on Inheritance and Gift Tax, meaning that it will cease to receive some €18 million per year.

When you decide to buy a house, you must remember that, apart from the price agreed with the seller, you will also have to pay a series of taxes associated with the transaction. When buying a used home, the most notable tax is the Property Transfer Tax (ITP by its acronym in Spanish).

In 2015, Spain introduced a special tax regime for wealthy EU expatriates that relocate to Spain.

It appears that Madrid could follow other Spanish tourist destinations in adopting the controversial tourist tax, which will require visitors to pay an extra charge for each night they spend in the city.

Stamp Duty (known in Spain as AJD or Impuesto de Actos Jurídicos Documentados) is one of the taxes associated with the purchase and sale of a property in Spain.

The income received from renting a property in Spain is taxed for personal income tax purposes as real estate capital. However, many people rent under the table – without a contract – to avoid paying the tax office.

If you're thinking of selling a house in Spain, there are several taxes and costs that you have to keep in mind.

The Spanish Government has released the calendar of dates that apply to the 2022/2023 income tax return campaign, commonly known as the "Declaración de la renta". Residents in Spain are obliged to declare their income, and income tax is known as "Renta de las Personas Fisicas" (IRPF).

When selling property in Spain, there are several taxes that have to be considered.

Unbeknownst to most people, Spain has passed legislation on the matter of taxation on Crypto Currency.

On selling property in Spain, you are liable for two taxes: Capital Gains Tax (CGT) Plusvalia tax. The first tax is national and set by the government. The second one, is a devolved competency to municipalities (read town halls).

The Spanish Government has confirmed the forthcoming tax changes, which are based on a general reduction in personal income tax for low incomes and more taxes on large estates.

In what constitutes the sixth wave of tax reductions in Andalusia (mamacita), its president, Mr.