It is very important that residency is correctly determined. Fiscal residents in Spain pay taxes on their income worldwide, but nonresidents are taxed only on their income within Spain.
Personal Income Tax (IRPF) – national
Form 100.
Filing period: April – June 30 of the following year (5 days earlier if you have taxes due)
For residents only: This is the standard “IRPF” income tax that most Spaniards pay.
If you are a UK citizen, you must complete form FD9 to apply for UK income tax exemption. By completing this form you are consenting to the Spanish Revenue, certifying to HMRC that you are resident in Spain for the purposes of Spanish tax.
Non-residents Income Tax (IRNR) – national
For non-residents only: Most non-residents are required to file income tax because they own a property , though you may also have to file because a Spanish company has paid you dividends, or because you worked for a few months during the year in Spain, etc.
Report of foreign assets (Form 720) – national
Filing period: January 1 – March 31 of the following year.
For residents: You are required to provide to the Spanish tax authorities information about any offshore accounts, offshore investments, and real estate located abroad with a value over 50,000€.
Inheritance and Gift Tax – regional
This tax applies to the beneficiaries of the inheritance or gift. The tax is on assets received with a value over 8000€. Even if the beneficiaries are not residents of Spain, they must pay this tax when the assets or rights are located in Spain. The tax rate starts at 7.65% and rises to 34% for assets with a value above 815,000€. If the beneficiary is a child (under age 18) of the deceased, then the tax rate on the assets is reduced to 5%.
VAT Tax (IVA) – national
The Canary Islands, Ceuta and Melilla have a different rate.
The standard rate is 21%. Essentials (food, water, medicine) have a reduced rate. If you’re a tourist, you can get a refund of this tax at a booth in the airport before you leave Spain by showing your receipts for over 90€ (including IVA). The 90€ doesn’t have to refer to a single item but it does have to be on a single receipt.
Transfer Tax and Stamp Duty (impuesto de transmisiones patrimoniales y actos jurídicos documentados) – regional
Filing period: Within 30 days of the transaction.
This tax is for certain real estate and commercial transactions. It is paid by the purchaser or the beneficiary of the transaction. The rate starts at 0.5% (for commercial activities) and rises to 6% (for real estate transactions).
Property Tax (IBI) – local
Filing period: Varies depending on the municipality, but normally between September and November of each year.
Each year, the municipality issues a property tax payment slip for all properties. The tax is usually between .5% and 1.1% of the cadastral value (valor catastral) of your property, which is roughly 20 times lower than the market value.
Plusvalía – local
Paid when you sell your property.
This is essentially a tax on the appreciated cadastral value of a property. It is paid by the seller. For more information, see our article on property taxes
Municipal Tax (basura) – local
Filing period: Varies depending on the municipality.
This varies depending on where you live. Usually assessed per house or building. Sometimes the tax is combined with water consumption.
Motor Vehicle Tax (impuesto sobre vehículos de motor) – local
Filing period: Varies depending on the municipality, but normally between September and November of each year.
This tax is based on the age and the power of the vehicle. The larger the city is, the higher the tax. For an average car, it is about 60€ a year.
