Should I pay my taxes in Spain or my country of Origen?

Do to the way taxation is set up between certain countries you do not have to pay twice for something, however, if you are residing in Spain, on a permanent bases it is a good idea to pay your taxes in the place where you live, and declare that in the country of your last resident, particularly when Spanish taxes returns declaration state that you must include all incomes whether in Spain or not.

What do I need to do to if I want to invest in Spain?

In order to invest in Spain whether through properties or business either directly or as a partner, you must pay tax. In order to be correct with the tax office you must be allocated a NIE and NIF number, which will serve as your identification and tax code, which once allocated, must be activated.

What is a NIF number?

Your NIF number is the personal tax code allocated to you, to represent a fiscal present in Spain, but not necessarily a physical presence in Spain. It is the number by which all your taxes will be assigned to.

What is the IBI?

The IBI is the Spanish council tax, which must be paid every year either in smaller payments or at once and the proof of them being paid is needed in order to sell a property.

What is the non-resident tax?

The non- resident tax in terms of property is the a 3% retention of the purchase price, that the buyer is to give to the tax offices to cover the taxes upon completing, there is usually money left over that the vendor can claim back.

How do I get my NIE number?

What should I do if I missed the first and/or tax payment period?

You should aim to get it paid as soon as possible, either getting in touch with the tax office or waiting for the next letter to arrive and pay promptly. It is a good idea to make some arrangement to pay standard taxes, usually through your financial representative, particularly if you come and go often.

What taxes will I pay when buying a new build or off plan in Spain?

If you buy a new property, you will have to pay the stamp duty and the VAT for the first time on the property. You should estimate around 10-15% on top of the price to cover taxes and expenses.

What taxes will I pay when buying a second hand property in Spain?

The taxes you will have to pay will depending on the type of property, whether it is new or a resale. If it is a resale, then you pay the transfer tax, which includes stamp duty and the added value tax. You will also have to pay a 3% retention tax, which comes out of the purchase price when you buy from a non -resident.

What taxes will I pay when I sell a property in Spain?

When you sell a property in Spain you will have to pay the PlusValia and capital gains tax, as well as making sure all your other annual taxes have been paid to present. The plusvalía is the taxable increased value of the property and the other the taxable profit made from the sale.

What will happen if I don’t pay my Spanish taxes?

In Spain they have been tightening down to tax payment and not just for non-residents, but everyone. The Spanish government has slightly increased taxes, and therefore if you are late paying the interest rate will be bigger and so will the charge, and it will keep increasing until paid.