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Spain
Individuals Taxation

Overview

Spain offers a residence-based tax system, meaning individuals may become tax residents by spending more than 183 days a year in the country. Spanish tax residents are subject to personal income tax (IRPF) on their worldwide income and wealth tax (IP) on their global assets.

Non-residents are taxed only on Spanish-source income and assets. Understanding the applicable rules is essential to ensure compliance and optimize your position. Madrid also offers additional tax incentives through the so-called ‘Mbappé Law’, providing IRPF deductions for eligible new residents.

Spanish Tax System for Individuals

Spanish tax residency arises after 183 days in a calendar year or by having the main center of economic interests in Spain.
Tax residents pay Personal Income Tax (IRPF) on their worldwide income, with progressive rates up to ~50%.
Wealth Tax (IP) applies on worldwide assets exceeding regional exemptions (typically €700,000–€1,000,000 per person).
Non-residents are taxed at flat rates (generally 19% or 24%) on Spanish-source income only.
Capital gains and investment income are taxed at separate flat rates (19% to 30%).
There are regional differences in tax rates and deductions, particularly for Wealth Tax.
Spain allows foreign tax credits under double tax treaties to avoid double taxation.
Spanish-resident taxpayers must report foreign assets (Form 720) and crypto holdings.
Gift and inheritance taxes also apply, with rates and allowances varying by region.
Certain new residents may benefit from the so-called “Beckham Regime”, a favorable expat tax scheme.

Requirements and Procedures

Form 030: Tax registration (before first filing obligation).
Form 149: Beckham regime application
Form 100: Annual Personal Income Tax return (IRPF), filed between April and June.
Form 714: Annual Wealth Tax return (IP), due in parallel with IRPF if thresholds exceeded.
Form 151: Annual Personal Income Tax return for Beckham cases, filed between April and June.
Form 210: Non-resident income tax return (quarterly or annual, depending on income type).
Form 720: Declaration of overseas assets exceeding €50,000, due by March 31 annually.
Form 721: Reporting of foreign-held cryptocurrencies, also by March 31.
Form 790 (Inheritance/Gift Tax): Due within 6 months from date of death or gift.
Form 179: Reporting of property rentals through platforms (by intermediaries).
Certificates of tax residence: Required to claim treaty benefits—must be renewed annually.
Payment options: Taxes can be paid via direct debit or at banks with NRC code.
Penalties: Significant penalties apply for late or incorrect submissions.

How Charfort can help you?

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Frequently asked questions

Everything you need to know about the process.

I’m moving to Spain—when do I become a tax resident?

We assess your days in Spain and economic ties to determine your residency status and tax obligations.

Do I need to declare my foreign accounts and assets?

Yes, if you are a tax resident. We ensure proper reporting via Form 720 and Form 721 to avoid penalties.

Can I reduce or avoid double taxation?

We analyze applicable tax treaties and assist in claiming foreign tax credits where eligible.

Do I need to file Wealth Tax?

If your assets exceed the exemption thresholds, yes. We calculate liabilities and optimize regional advantages.

How do I pay tax on my global investments?

We review your income from dividends, interest, and capital gains, applying the correct tax rates and reliefs.

What if I rent out a Spanish property as a non-resident?

We file quarterly Form 210 returns and ensure the correct tax treatment and deductions are applied.

Can Charfort represent me before the Spanish Tax Agency?

Absolutely. We handle all communication, filings, and audits on your behalf to give you full peace of mind.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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