Resident taxes in Spain

Resident tax in Spain

If you are a resident in Spain, it means that you send a fair amount of time in Spain and have a permanent resident here. It also means that you because you are living here in Spain you should be paying your taxes here in Spain.

Someone becomes a resident at tax purposes when they have been in Spain over 183 days they are by law to submit their resident forms, as they are clearly staying for a prolonged period. When you buy a house in Spain you have to be allocated a nation identification number for foreigners or the NIE number, which expires after 3 months which is when you go to re-new it you can apply for residency, where the two will be combined. That is your NIE number and residency certificate will be one document. Once you have become and resident you are eligible to pay your taxes in Spain, just like any Spanish citizen would.

If you pay all your taxes in Spain it will actually benefit you and the area where you live, helping to improve the services that you can use.

In Spain you are to pay the following taxes:
  • -Tax return.
  • -Income tax.
  • -Capital gains.
  • -National insurance.
The tax return declaration will include income tax and capital gains tax. When you submit your tax return declaration you will be assessed for tax payment if you should need to pay anything at all. In many cases you will actually be refunded, particularly when you have a mortgage, or you simply will owe nothing and your taxes are correct. In the declaration you are to state any and all assets and income whether sourced from Spain or not.

Certain aspects, like Spanish property and income will be taxes here, but certain offshore investments may not be subject to taxation here, but regulation states that you must declare it for informational purposes. Upon being a resident in Spain you are bale to apply for your national security /social security number which will entitle you so the same benefits as a Spanish national. Use of public sectors such as the doctors, which using your EU insurance card will get you , but only for the short term, in the long term if you are living here, then you would need to assigned a doctors.

ABAD lawyers and accountants would be more than happy to help with any consultation you may have towards this area, as well as being completely qualified to present your tax returns and assist you in submitting documentation.