MBA Spain

Taxes in Spain


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In Spain the tax system is complicated. So, it is a great idea to consult an international tax advisor if you want to live in Spain.

Spain has a double taxation agreement with many countries; this agreement allows you a tax credit in the US for taxes paid in Spain and visa versa. Paying for Permits and Taxes in Spain may be advantageous in some cases, since there are deductions that may not apply in other countries.

If you leave Spain, you need to apply for tax clearance. You will need to pay an estimated amount of taxes due for that year. But you can request a refund if the amount turns out to be high.

The most important taxes are listed hereafter.
  • Income Taxes
  • In the last years, income taxes are higher in Spain. If you reside 183 days per calendar in Spain, you are liable for income taxes but there are usually a lot of legal ways to minimize these liabilities.
    If you are Non-resident in Spain you are taxed on income derived of any business, or any income arising as a money deposit with a Spanish bank.
    As a resident you will be taxed on your world wide income. You may deduct your income tax paid in your home country.

  • Inheritance and Gift Tax
  • This tax is charged on assets and moneys received as an inheritance or gift. Residents and non-residents are liable for inheritance tax. This tax is payable by the beneficiaries and not by the estate.

  • Capital Gains Tax
  • Capital Gains are payable on the profits made on the sale of property and other assets located in Spain. It is very similar to capital gain taxes in the United States. Capital gains for a resident will be treated as income in the year the gain was made.

  • Wealth tax
  • Wealth tax is levied in assets located in Spain (car, houses, bank accounts etc). Residents and non-residents property owners are liable to Wealth Tax along with the Personal Income Tax. Both taxes should be declared at the same time.

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