Personal Income Tax in Spain
A quick guide to understanding if you will need to pay income tax in Spain...
You will become liable for tax as a resident of Spain if any of the following criteria are met:
a) You spend more than 183 cumulative days in one calendar year in Spain, i.e. 1st January to 31st December, which is the tax year. These days do not have to be consecutive and temporary absences from Spain will be ignored unless it can be proved that you are habitually resident in another country. You will become liable whether or not you formally register in Spain.
b) Your ‘centre of economic interests’ is in Spain, i.e. the base for your economic or professional activities is in Spain.
c) Your ‘centre of vital interests’ is in Spain, i.e. your spouse lives in Spain (and you are not legally separated) and/or your dependent minor children live in Spain. If this applies you will be considered resident regardless of how many days you spend in Spain, unless you hold a tax residency certificate issued by another country.
In Spain there is no split year treatment, you are either resident or not resident for the whole tax year.
As a resident of Spain you will be liable for tax on your worldwide income at progressive scale rates after any available allowances and deductions, depending on the region where you are resident. Non-residents of Spain will be liable for Spanish income tax only on Spanish income at fixed rates and with generally no allowances or deductions.
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual must take personalised advice.
Blevins Franks are the leading international tax and wealth management advisers to UK nationals living in Europe.