Taxes in Spain 2024
Who pays taxes in Spain and what is tax residency?
According to Article 9 of Law 35/2006, the Spanish Tax Authority considers anyone to be a tax resident if they fulfill one of the following three conditions:
- Being in Spain for more than 183 days per year (departures from Spanish territory to the EU or outside the EU for tourist trips can be considered as days in Spain)
- Spain is directly or indirectly the basis of the economic interest (e.g. registering a sole proprietorship in Spain, working remotely from Spain).
- Spouse or child usually resides in Spain (considered as the center of the family's vital interests).
Spain uses a progressive tax rate on income and without taking into account various deductions (social status, disability, non-working family members, etc.).
According to Article 9 of Law 35/2006, the Spanish Tax Authority considers anyone to be a tax resident if they fulfill one of the following three conditions:
- Being in Spain for more than 183 days per year (departures from Spanish territory to the EU or outside the EU for tourist trips can be considered as days in Spain)
- Spain is directly or indirectly the basis of the economic interest (e.g. registering a sole proprietorship in Spain, working remotely from Spain).
- Spouse or child usually resides in Spain (considered as the center of the family's vital interests).
Spain uses a progressive tax rate on income and without taking into account various deductions (social status, disability, non-working family members, etc.).
Tax residents of Spain pay tax on all worldwide income. If a tax resident of Spain has assets abroad, namely: income in any form, cash in a bank account, or other digital assets (shares, units, cryptocurrency, etc.), real estate, and if at least one of these forms of assets exceeds 50,000 EUR, then annually the assets must be declared on the established form 720. However, if the change in such income in the next reporting period does not change by more than 20%, a new form is not required.
Maxim Avenidas
Tax consultant
Shagin & Partners
Shagin & Partners
Useful information
for tax residents of Spain
for tax residents of Spain
Holders of residence permits under the No lucrativa and Investor programs may not be tax residents of Spain under certain conditions
A competent hastor is the key to savingsA knowledgeable hestor or tax advisor is key to your efficient tax accounting and peace of mind.
Deadlines for declaring incomeDeclaration of personal income must be made by June 30 of the year following the reporting year. It is important to realize that declaration is not equal to the tax payment deadline.
Progressive effective rateDo not be afraid of the high figures in the tax scale, high % is paid only from the delta exceeding the low values, not from the entire income, and can be reduced depending on the presence of expenses.
Individual Characteristics and DeductionsAlways keep in mind that the tax base can be reduced, on very different grounds, such as a non-working family member.
Special tax regime “BECKHAM”
When using the tax regime called Ley Beckham en España, in Spain the flat tax rate should be 24% for income related to work or services, for income up to 600,000 EUR. This makes sense if your income exceeds 100,000 EUR per year. (in some regions of Spain the rate differs, for example in Valencia region this threshold is 75 000 EUR).
Don't forget about deductions and the possibility of reducing the effective tax rate.
When using the tax regime called Ley Beckham en España, in Spain the flat tax rate should be 24% for income related to work or services, for income up to 600,000 EUR. This makes sense if your income exceeds 100,000 EUR per year. (in some regions of Spain the rate differs, for example in Valencia region this threshold is 75 000 EUR).
Don't forget about deductions and the possibility of reducing the effective tax rate.
Social and health insurance contributions for individual entrepreneurs
In the period 2023-2025, those who have obtained the status of self-employed for the first time may request the application of a reduced fee of 80 EUR per month for the first 12 months of activity.
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