Can I use the spanish health system?

Yes most people can use the medical system in Spain. If you are a non resident, normally in Spain visiting, then as long as your country has an agreement with Spain then you are able to use the emergency services. If you are a resident, then you can use the full medical system if you pay contribution, unless under particular circumstances.

Do I have to do the Spanish tax return (La Renta)?

Everyone that owns a property in Spain must present their personal self –assessment tax returns by law. You must also submit the forms if you earn over a certain amount particularly when working.

How do I know if I’m a Spanish resident?

In Spain you are legal classed as a resident if you have spent more than 183 days including short trips out the country. In which case, you should then get a certificate stating that in fact you reside in Spain for prolonged periods of time, that you must apply for. You will then receive a document including both your NIE number and residency.

Should I seek help for the Spanish tax returns?

It is strongly advisable to get a consultation with professional with experience, as each individual case is different and doing your taxes wrong could end up costing you a lot of money particularly if you are not familiar with the Spanish system. Here at ABADs we are able to offer full financial and taxation services to our clients with an experienced qualified team working for the best interest of the clients.

What does being a resident mean?

Being a resident has many benefits, as it allows you to make transaction in Spain easier as well as being able to use local amenities. However, being a resident also means that you have to pay taxes in Spain. If you won a property in Spain then by law you are to submit your Spanish tax returns, but being a resident doesn’t mean you when automatically have to pay any additional taxes, unlike non-residents. You simply have to declare your income and assets.

What is capital gains tax?

Capital gains tax is the taxable percentage of the profit made from selling a property in Spain, and if you are a resident in Spain, then you are to declare this amount in your tax returns. The amount taxable will depend of the amount it sold for in comparison to what you paid for it, that is the profit. There are some reductions if the profit is used to purchase another property.

What is la Renta?

The RENTA is the Spanish tax returns which are to be submitted annually to determine if you owe any taxes based on income and assets, or if you have over paid, in the case of tax reduction where you have a family or a mortgage.

What is Seguridad Social?

It is the national insurance system in Spain including health care. You usually form part of the system when you pay tax in terms of contribution in Spain, like when yo0u work in Spain, the contribution tax is deducted from your pay. It permits many benefits and the long you contribute the more help and amenities there are for you to have access to.

What taxes I am supposed to pay as a resident?

As a resident you are by law obligated to pay and submit taxes and forms. These taxes will include general property and car taxes as well as income and capital gains tax which will be submitted along with your tax return forms. How much you will pay will be calculate through your tax returns. You will also be pay national insurance in the case of working in Spain.

Why do I have to pay income tax in Spain?

Because every with a property in Spain must submit their tax returns, and this includes income tax. However in general most people will find that they are under to taxable threshold and have already been taxed at source, like certain pensions. However if you live in Spain are legally meant to declare all of your income whether in Spain or aboard, as you should pay taxes where you live in this case in Spain.