Taxes for Residents of Spain

Are you already or are you considering becoming a tax resident in Spain? Today we will tell you what returns and when you are required to file them.

So, the very first model that awaits you is the information  MODEL 720 , the submission is carried out from January 1 to March 31. In it, you must detail your real estate, bank accounts, securities and other assets around the world, the value of which in aggregate exceeds 50 thousand euros. Despite the fact that it seems that the model is purely formal, failure to provide this model or inaccurate information in it may result in fines of up to 150% of the undeclared amount. Why is everything so strict? And everything is very simple, for the tax authorities it is a fundamental model, guided by which it will be calculated:

– imputed tax on real estate that is not rented

– wealth tax

– Personal income tax, in the column Base de ahorro, where we indicate passive income, for example, from securities.


MODEL 100 submission April-June

The filing of the IRPF personal income tax return is carried out in April, May, June of the year following the reporting period. From the moment of tax residency, you must show all income from around the world. Depending on the double taxation treaties between countries, you can only pay the taxes in between the country of the source of income and the country of your tax residence. The tax is progressive, the higher the income, the higher the tax rate, which in Spain reaches 45%. When calculating the tax, there are some peculiarities, for example, there are deductible minimums for a person, a non-working spouse and children. It is also possible to include in expenses health insurance, retirement plan, charity activities. By the way, this year,


MODEL 714 filing April-June

Together with the IRPF, modelo 714 IMPUESTO SOBRE EL PATRIMONIO is submitted – Wealth tax on the total net fortune of an individual: real estate and movable property related to luxury goods, cash and other “goods” of an economic nature. Please note that this tax applies to the property of individuals (not legal entities). This tax starts from assets from 500 thousand euros (Catalonia and Valencia), in some regions from 700 thousand euros (Andalusia), and in others it is completely absent (Madrid).

It is worth noting that living in Spain does not always make you “taxable”, because in addition to the required criteria, you must also have an appropriate residence. Get in otuch for more information.


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