The tax rules for foreigners in Spain depend on their tax residency. A person is considered tax resident in Spain if he or she lives there and has main economic links, such as work or a business.

Tax residents in Spain pay taxes on their worldwide income, including income from employment, real estate, interest, dividends and other sources. Tax rates vary progressively from 19% to 45%.

Specific taxes that foreigners may face in Spain include income tax, property tax, inheritance tax, gift tax, VAT and import duties.

These tax rules are complex and contain exceptions and exemptions. It is wise to consult a tax advisor to determine which taxes apply to your situation.

Some tips for foreigners who have to pay taxes in Spain:

• Prepare a budget for taxes to be paid.

• Take the deadlines for filing tax returns into account.

• Consult a tax advisor for advice on your tax return.

• Gather all relevant documents and information, such as pay stubs, rental contracts and tax returns from your home country.

For more detailed information and advice you can always contact us. We are happy to help you with your tax questions regarding living, investing or having a holiday home in Spain.