Taxes for Foreigners in Spain 2023

Do I really have to pay taxes in Spain as a foreigner? Unfortunately, the answer to your question is yes. Taxes are everywhere. And moving to Spain won’t make them disappear. In fact, they will become a crucial part of your new life in the country (whether you are a tax resident or not). But that’s why we’ve created this article. When you finish reading this post, you’ll perfectly understand all the taxes you have to pay in Spain as a foreigner, how the tax system works exactly, what all your legal obligations will be in this matter, as well as discovering really useful tips that will help you save money (with bonuses, deductions, and double taxation agreements).And although there are significant differences in the taxes to be paid depending on whether you are a tax resident or not, both tax residents and non-residents must pay taxes in Spanish territory.

However, the key here is to understand what your specific obligations are, and the different avenues available to optimize your situation and avoid overpaying (something that, in many cases, is entirely possible). That’s something we’ll look at in a second.

So if you are a foreigner living in Spain, carrying out any economic activity in the country, or simply owning any type of asset, you will have to pay taxes.

How does the tax system work in Spain?

Understanding how taxes work shouldn’t be so complicated, and in this section, we’ll show you.

Unlike many countries (such as the UK), the Spanish fiscal year runs from January to December, coinciding exactly with a natural calendar year.

This simply helps us understand the duration of the different tax obligations that will arise depending on what you generate in the country and your particular situation.

What does this mean?

That all tax obligations that arise from January 1 to December 31 are grouped together, and you will have to declare and pay them during the following year.

And that is done through your annual tax return, known as the “”””renta”””” declaration.

So when should we pay our taxes?

Your taxes are submitted between May 1 and June 30 of the following year. That is, you will always submit, in the current year, the taxes from the previous year.

However, if you earn less than 22,000 euros per year and that money comes from a single payer (let’s say, a company), you do not have to submit this “renta” declaration.

To make the payment, you must be identified in the eyes of the administration. This means that you will need your NIE number, the basic number that identifies you as a foreigner and that you will need for almost any legal procedure.

All matters related to taxes in Spain, both for residents and non-residents, are regulated by the Spanish Tax Agency, the institution to which you must pay your taxes. If you want to stay up-to-date with all the updates in tax matters, we strongly recommend sending us an email and we can help you with your query.