Moving to Spain: tax & fiscal relocation guide.

You may become Spanish tax resident if you spend more than 183 days in Spain during the calendar year, if your main centre of economic activities or interests is in Spain, or in certain circumstances based on where your spouse and dependent minor children live.

Spain does not normally split the tax year. For example, if you move to Spain in May and spend more than 183 days here, you can become Spanish tax resident for that tax year as a whole.

This is important because Spanish tax residents are normally taxed on their worldwide income.

Special regimes, such as the Beckham Law, can work differently.

No. Immigration residence and tax residence are different.

Your visa, TIE or EU registration determines your right to live in Spain. Your tax residence determines how Spain taxes your income and assets.

Obtaining a TIE does not automatically make you Spanish tax resident on that date. Your tax residence is determined separately, based on factors such as the number of days you spend in Spain and where your main economic interests are located.

This distinction is important because becoming Spanish tax resident can bring your worldwide income and certain foreign-asset reporting obligations into the Spanish tax system.

If you are Spanish tax resident, you are normally required to declare your worldwide income in Spain, not only income earned in Spain.

This can include foreign salaries, self-employed income, pensions, rental income, dividends, interest and capital gains.

How the income is taxed can depend on the type of income and the relevant Double Taxation Agreement between Spain and the other country.

Spain has Double Taxation Agreements with many countries that determine which country has the right to tax different types of income.

In some cases, income may need to be declared in both countries, but this does not necessarily mean paying tax twice. Spain may allow relief for qualifying tax already paid abroad.

The exact treatment depends on the country and type of income, so foreign income should be reviewed individually.

There is no single tax rate for Spanish residents. IRPF is progressive, meaning the rate increases as taxable income increases.

The amount you pay also depends on the type of income, your personal circumstances, available deductions and the Autonomous Community where you live, as part of IRPF is determined regionally.

Foreign income can also affect your overall Spanish tax position, so it is important to look at your complete income rather than only what you earn in Spain.

Yes. Your Autonomous Community can affect your tax position because regions have powers over parts of Spanish taxation, including aspects of IRPF and Wealth Tax.

For people with significant income or assets, the difference between regions can be substantial.

However, one tax should not be considered in isolation. Your overall position may also involve income tax, Wealth Tax, inheritance and gift taxation and other regional rules.

You can keep property abroad after becoming Spanish tax resident, but it can create Spanish tax and reporting obligations.

Rental income, a future sale and even a property that is not rented can have Spanish tax consequences, as non-rented foreign property may still give rise to imputed income in Spain. The property may also need to be considered for Modelo 720 and Wealth Tax.

The exact treatment depends on how the property is used, its value, your ownership percentage and the country where it is located.

If you are Spanish tax resident, foreign rental income normally needs to be declared in Spain as part of your worldwide income.

Certain expenses associated with the property may be deductible, depending on the circumstances.

If tax is also paid in the country where the property is located, the relevant Double Taxation Agreement and foreign tax credit rules determine how double taxation is dealt with.

If you hold significant assets outside Spain, you may have a foreign-asset reporting obligation.

Modelo 720 covers foreign bank accounts, investments and property, with an initial threshold generally of €50,000 per relevant category.

Any income generated by these assets, such as interest, dividends or capital gains, may also need to be declared separately in your Spanish income tax return.

Modelo 721 covers certain cryptocurrency held abroad, also subject to specific reporting thresholds.

These are information returns, not taxes themselves.

Yes, but working from Spain can create Spanish tax and Social Security obligations, even if your employer is based abroad.

The correct setup depends on factors such as where the employer is established, whether you remain on foreign payroll, how long you will work from Spain and whether an international Social Security agreement applies.

For a permanent move, your working arrangement should be reviewed to ensure it is correctly structured in Spain.

If you are self-employed and regularly carrying out your activity from Spain, you will normally need to register as autónomo, even if all your clients are abroad.

You can invoice clients in Spain, the EU and other countries. The VAT treatment depends on where the client is located, whether they are a business or private individual and the type of service provided.

For certain EU business clients, ROI/VIES registration and Modelo 349 may also be required.

The exact obligations depend on your activity, but autónomos commonly have to account for income tax (IRPF), VAT (IVA) and Social Security contributions.

Quarterly tax returns may include Modelo 130 for income tax payments and Modelo 303 for VAT, together with other returns depending on the activity.

You will also normally file an annual Spanish income tax return.

Owning shares in a foreign company does not automatically make the company Spanish tax resident.

However, the position should be reviewed if you manage the company or make key business decisions from Spain, work for the company from Spain, or receive salary, director remuneration or dividends.

Moving to Spain can therefore affect both your personal tax position and potentially the foreign company’s Spanish obligations.

If you become Spanish tax resident, foreign pension income may need to be declared in Spain.

The tax treatment depends on the type of pension and the Double Taxation Agreement with the country where the pension originates. State pensions, private pensions, workplace pensions and government-service pensions can be treated differently.

If you are considering a large pension withdrawal or lump sum, it is worth reviewing the tax consequences before becoming Spanish tax resident.

Yes, the majority of our clients are expats. We speak English, Spanish and Dutch. We will help you understand all the Spanish forms for your clarity and leave nothing unexplained.

Usually about a week. It takes two forms, both of which we handle for you, and we keep you posted at each step and set up your quarterly filings from the start.