Spain, like any European country, can be interested in the income of every foreigner who stays in the country for more than 183 days.
However, the confirmed tax residence is established if the taxpayer meets one of the following criteria:
its main source of income is in Spain;
the family of such a person permanently resides on the territory of the Kingdom.
Residents of Spain must file a Spanish tax return and pay income tax on their worldwide income in the following cases:
● annual income from work is more than 22,000 euros;
● the person is an entrepreneur in Spain or runs his own business;
● the person receives rental income of more than 1,000 euros per year;
● The person has capital gains and savings income of more than 1,600 euros per year;
● This is your first year of declaring tax residency in Spain.
Also, the resident must declare all his assets abroad in the amount of more than 50,000 euros (using Modelo 720 or form 720).
Taxable income is the income remaining after deducting Spanish social security contributions, pensions, personal allowances and professional expenses.
For non-residents there are fees that are not paid by Spaniards:
tax on capital gains from the sale of real estate (Incremento de Patrimonio) – 3% of the proceeds;
tax on income from probable rent (Impuesto sobre la Renta de No Residentes) – 24% of the share of the cadastral value of the real estate object (from 1.1 to 2%);
tax on dividends and income in the form of interest is taxed at the rate of 24%, if the profit was not paid to EU citizens.
Foreigners are obliged to pay:
value added tax (IVA);
property transfer tax (ITR);
property tax (IBI);
stamp duty (AJD);
transport tax (IVTM).
In addition, foreigners may be required to pay certain municipal and local fees.