Discover the most important taxes in Spain

As in most economically developed countries, Spain relies on a system of taxation to support welfare and social services. Both residents and foreign residents who, after 183 days living in Spain with the Non Lucrative Visa permit for Spain, will have to face the expenses involved. 

Thus, the tax system pays for the health and education system, social aid for people with low income, pensions for retired people etc.  However, one of the taxes that can catch foreigners by surprise is the spanish wealth tax, as Spain is one of the few countries that has approved this tax, both for residents and non-residents.

On this basis, if you have doubts about when you have to file your tax return, whether you are obliged to do so or whether you want the advisor to remind you directly of the dates, it is best to rely on experts.

Model 720

If you have already become a tax resident in Spain, i.e. you have been resident in Spain for more than 183 days during a calendar year, you should contact the Spanish tax authorities to let them know about your assets and rights.

Form 720 is filed from 1 January to 31 March of the financial year following the financial year to which the information in the form refers.

Persons holding at least 50,000 euros in any of the three blocks of assets for which this declaration is intended must file the form with:

  • Accounts in financial institutions located abroad.
  • Stocks, rights, insurance, and income deposited, managed or obtained abroad.
  • Immovable property

La Renta in Spain

This is another tax that the Spanish state has for people who have been resident in Spain for more than 6 months or whose economic interests are in the country. 

A person is not obliged to file when they have earned €22,000 or less from earned income or pensions. 

The income you can have is varied: paid employment, pensions, investments, capital gains, rentals…

The deadline for filing a tax return in Spain is from the beginning of April until the end of June.

Wealth Tax: A peculiar tax

This tax is annual. It refers to the total net value of a person’s assets. Total net value is understood to mean: All assets and rights of economic content owned by a natural person, minus charges and encumbrances that diminish their value, as well as personal debts and obligations.

Spain is one of the few countries where this extra tax is approved. Both residents and non-residents are subject to Spanish wealth tax.

The rules vary depending on your residency status in Spain and the region in which you are located.

Among the main assets taxed are art objects and antiques, life insurance, intellectual property rights, luxury goods…

Non Resident Tax in Spain: Income Tax Form

Every year, before 31 December, all Non-Residents in Spain must complete a Non-Resident Income Tax Form.

Every year, before 31 December, all non-residents must complete a Non-Resident Income Tax Form. This tax applies to any person who is not legally resident in Spain, but who has assets in Spain, such as real estate. If you are one of these non-residents, you will need to fill in a 210 form with all your personal details, bank account number and details of any assets you have in Spain.