We all know the Dutch tax authorities and the blue envelope, but what about taxes in Spain? Because hey, taxes, you can't avoid them. Nowhere in the world. That's why it's very important to do this before you emigration to Spain to find out a few things about this, because everyone who lives in Spain and is economically active has to deal with the Spanish tax authorities and also has to pay taxes in Spain. So are you a tax resident in Spain? Then your worldwide income is taxed.
When do you have to pay taxes in Spain?
Also don't forget that you need your NIE for this. You are a tax resident in Spain when you have a Spanish residence permit have or:
- If you stay in Spain for more than 183 days per calendar year
- You are economically active
- Your wife and children (who are financially dependent) are also residents in Spain
Taxable income
Does your taxable income remain below the tax-free threshold of Spain? Then it is recommended to file a return for your income tax and thus report your income and assets. This way you can always prove that you have simply paid your taxes in Spain, because this is an important condition for when you have to extend your 'residencia'.
Are you not a Spanish resident, but are you involved in real estate in Spain, for example? Then you must also file a tax return with the Spanish tax authorities. In this case, you will have to deal with the rental value notional rental value your home.
Fiscal year in Spain
In the Netherlands it is running fiscal year, or fiscal year officially from January 1 to December 31. In Spain this is also the case. In the Netherlands we can file our income tax return with the tax authorities from March 1 and this must be received by July 14 at the latest.
You can contact the Spanish tax authorities declaration early April and you have until June 30th to do so. Of course, just like in the Netherlands, everything is calculated the following year and in Spain it is called the Declaracion de la Renta.
Tax return
You are responsible for passing on information to the tax authorities. If you need help with this, you can hire tax lawyers who can help you arrange your taxes in Spain. They will look at the general tax-free allowance, your total assets, your sales tax, assets: in short, everything. This way, you can't make any mistakes and you won't be faced with any surprises later.
Spain tax bracket
| Up to €12,450 | 19% |
| From €12,450 to €20,200 | 24% |
| From €20.00 to €35,200 | 30% |
| From €35,200 to €60,000 | 37% |
| from €60,000 to €300,000 | 45% |
| Above €300,000 | 47% |
Inheritance tax and gift tax
These duties vary considerably from region to region in Spain. Some regions in Spain have reduced inheritance tax and gift rates to virtually zero. However, this only applies to residents. For non-residents, a different arrangement applies.
The percentage of the national rate depends on the size of the inheritance and/or gift. There is also a multiplication factor that depends on the family rank of the heir/recipient. This is also determined by the size of the assets. What is good to know is that the percentage can amount to almost 82%.
Transfer tax in Spain
The transfer tax in Spain has quite a high rate. This is namely 6% to 11%. Of course you also have to count on costs for the broker and notary. Often this is between 2% and 3%.
Impuesto de Bienes Inmuebles (IBI)
The IBI is a property tax. This municipal tax is collected annually by the municipality in Spain where you live. Or when you have bought a house in Spain, for example. This tax applies to both residents and non-residents who have bought a house. The amount of this tax depends on the cadastral value of your home.
This tax is called a municipal tax, because it is collected at a local level. In this case, by the municipality.
Taxpayer in the Netherlands
Furthermore, Spain has a tax treaty with the Netherlands. This prevents you from paying too much tax. Was there also a period in the year that you lived in the Netherlands? Then you still have to pay your tax in the Netherlands for this period.
It sometimes happens that Spain accidentally offsets tax over the period that you were still living in the Netherlands, but you can simply report this with evidence from the Dutch tax authorities and it will be quickly corrected.
It is also the case that for certain income in the Netherlands you are still obliged to pay tax on this. Think for example of government pension (ABP). For more information about this, it is best to contact the tax authorities so that they can help you further. That way you know exactly what you need to do now and what you may need to arrange later in Spain.
Finally..
This text has been written with care, is informative and contains information about the most important taxes you will encounter in Spain. Please note that different rules may apply to non-residents and Spanish residents for paying taxes. Of course, we do not know what the circumstances are in your specific case. Therefore, always check with the tax authorities what applies to you.
As you have read in this article, it is very important that you properly fulfill your personal obligations to the Dutch tax authorities before you emigrate. Then, when you live in Spain, it is also very important to immediately ensure that your taxes in Spain are also in order.
Do you have any questions after reading this article regarding emigration to Spain? Think about what you need to arrange for your emigration, your Dutch health insurance and your health insurance in Spain or your Dutch car that you may want to export to Spain? Then we would like to refer you to the other articles on our website. These topics and a lot of other information are discussed in the articles on our website. Who knows, your question may be answered in one of the articles.
