Spain

Taxes in Spain

Introduction

Taxes are always a source of frustrations and headaches. In Spain, this is no different. Most taxes will sound familiar to you and will have a counterpart in your country to. We will try to give you an overview of some of the taxes that will have an impact on you as a second home owner or expat in Spain. If you don't find everything you need here or if you have a rather peculiar situation, we advise you to check out the overview at expatica, call the tax agency or to contact a specialist in Spanish law.

There are two points to always keep in mind when you read about taxation in Spain:

1. Residents vs. non-residents

Depending on your fiscal domicile, you will be subject to different taxes. For some taxes double taxation agreements exist. So make sure to check out which agreements are in place between Spain and your home country. You can find these agreements on the website of Agencia Tributaria (Spanish texts only) or by using the 'quick treaty locator' of taxnotes (English texts available, use the free trial!)

2. Local authorities and independent communities

Due to the specific political system in Spain, taxes can be imposed by 4 different levels of government:

  • National government (Ministerio de Economia)
    • IVA - Spanish VAT
    • IS - Impuesto sobre Sociedades - Corporate tax
    • IPRF - Impuesto sobre la Renta de Personas Fisicas - Income taxes
    • IE - Impuesto Especiales -Special taxes
  • Independent districts
    • IP - Impuesto sobre el Patrimonio - tax on wealth
    • ITP - Impuesto sobre Transmisiones Patrimoniales - Realty Transaction tax 
    • ISD - Impuesto sobre sucesiones y Donaciones - Succession rights
    • AJD - Actos Juridicos Documentados - Tax on Juridicial Actions
  • Local Authorities (provinces)
    • IBI - Impuestos sobre Bienes Inmeubles - Property tax
    • Taxes on vehicles
    • IAE - Impuesto de Actividades Económicas - Economical activities
    • Municipal taxes
  • Community / City
    • Construction taxes
    • Added value taxes

For some taxes the rates will differ greatly depending on the region you want to settle, so be sure to inform yourself about the taxes for the community of your interest to avoid any suprises afterwards!

Which taxes are relevant for me?

As a future second home owner or future foreign resident, some taxes will be more of interest to you than others. We tried to summarize some of these taxes for you: