Tax in Spain

Like every year, we take the opportunity to gently remind all non-resident property owners in Spain they are under a fiscal obligation to file once a year a tax that is known as non-resident imputed income tax (NRIIT, for short).

Building your own home is likely the cheapest option in Spain, saving you hundreds of thousands of euros, if not more. Many owners resort to it.

The new tax changes put in motion by Andalusia’s regional government back in 2019 on inheritance tax greatly contributed to attract foreign investments as they translated in practice into abolishing inheritance tax in Andalusia, as we reported at the time.

Most non-residents are vaguely aware that on selling property in Spain, a buyer practices a 3% retention on the sale proceeds which is paid directly to the Spanish Tax Office.

On Monday 26th of April, Andalusia’s coalition government agreed to lower taxes in the region of Andalusia.

The purpose of this article is to give some pointers on why becoming (tax) resident in Spain is not as bad as some people would lead us to believe.

Springtime is almost upon us, it is once more the time of the year in which Mother Nature paints the countryside in bright yellow colours, animals are keen to display courtship behaviour, and humans drive estate agents nutty on looking for a brand-new home! Ironically, one of the best times to redu

The “Modelo 720” form, is a basically a declaration of overseas assets for people living in Spain, that is to say, assets held outside of Spain.

All non-residents who own property in Spain are obliged to pay Non-Residents' Income Tax (IRNR) once a year.

Unbeknownst to scores of foreign Spanish residents, there is a tax obligation to file tax form 720 if you own assets abroad in excess of 50,000 euros. Legions of foreign property owners, who are resident in Spain, may ignore the existence of this tax obligation.

Following up on our article Buy-to-Let in Spain: Landlord Tax Reliefs, VAT invoices are the backbone on claiming landlord tax relief.

The time has once again arrived for taxpayers in Spain to consult their tax data online or on the Agencia Tributaria app run by the Spanish tax office.

All transactions are taxed and even more so if they involve real estate. This year there have been several new developments related to taxes in Spain, specifically those regarding municipal capital gains, property and personal income.

When buying a property in Spain, the mortgage is not the only large expense.

The Generalitat of Catalonia finalises the approval of a tax reform that will lead to increases in personal income tax or inheritance tax, plus the creation of new green taxes.

With the change of government, the region of Andalusia approved a new set of inheritance laws on the 11th of April 2019 which drastically reduce, or even suppress, Inheritance & Gift tax. The gist of these changes is that to most people they translate into paying drastically less taxes when inh

Good news for anyone with a rent-to-own property in Spain – the Spanish Supreme Court has declared in a recent ruling that money paid for a rent-to-buy home scheme is tax deductible in the IRPF tax declaration for investment in property. This means that the High Court takes this type of lease to be

As the deadline for the 2018 tax returns draws nearer, we remind you of the importance of doing your income tax returns in Spain and how to declare the IRPF if you rent your house to tourists and long-term tenants. The Spanish Tax Agency, the Hacienda, demanded that thousands of taxpayers pay

On selling property in Spain, you are liable for two taxes: plusvalía and capital gains tax (CGT). In this short article on Spanish tax, we will focus on four strategies to mitigate a seller’s exposure to CGT, which range from completely negating it to reducing it significantly. The following

Taxpayers in Spain can already consult their tax data online or on the Agencia Tributaria app for the Spanish tax office, and as of 2nd April 2019 have been able to file their 2018 IRPF tax returns. You can only file your tax returns in Spain online for the next month and a half, according to the o

Andalusia’s centre-left wing party was ousted from power last December after 37 years in control. With the turn of tide, the new centre-right wing ruling coalition agreed in Seville to abolish inheritance tax in Andalusia.

The European Commission has opened an infringement procedure against Spain on the grounds that it discriminates against expats who rent their homes.

When a taxpayer sells a home in Spain, they are obliged to pay the infamous municipal capital gains tax (called the plusvalía municipal in Spanish) unless they have incurred losses from the transfer.

All those years of hard work are over, and you can finally fulfil your life-long dream: tell everybody “hasta la vista” and retire to Spain. And why wouldn’t you?

When a taxpayer acquires a home in Spain, he or she can use the website of the Tax Department of the autonomous community they’re in to find out what the property is worth for the purpose of paying the ITP or ISD tax (depending on where it is) and avoid overpaying.