Do you already have a home in Spain or are thinking about buying one?
You should know the fiscal obligations you need to comply with, which will depend on your fiscal residence status.
If you are resident
According to the Spanish Tax Law, people who stay in Spain more than 183 days a year are considered fiscal resident in this country, which imply the obligation to submit an annual tax return to the Spanish Tax Office.
The tax period for resident tax submissions is May – June and refers to the previous fiscal year, coinciding with the calendar year, January-December.
The Spanish residents are obliged to declare in this country all their assets all over the world: state and private pensions, properties, rental incomes, bank accounts, deposits, life insurances, dividends…There are personal allowances applicable to tax payers depending on their personal circumstances.
The tax liability is calculated according to a progressive scale rate.
Other taxes and legal formalities applicable to residents are:
- Wealth tax: applicable to residents within the same limits referenced on the non- residents.
- Form 720: Since 2012, residents in Spain are required to file an information return on assets outside the Spanish territory. This is not a new tax but a new information requirement approved by the Government within the framework of the fight against fraud and tax evasion.
Fiscal Advice: We offer a wide Tax and legal consultancy to give you the best advice accordingly to your needs.
IF YOU ARE NON-RESIDENT, CLICK HERE