Resident tax

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Posted and filed under Taxes in Spain.

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Do you live in Spain for more than 183 days a year?

If so, you are liable to pay tax on all your global income, according to Spanish law.

Many foreigners who live here permanently do not submit annual income tax returns, either out of ignorance or because they are afraid of paying high taxes.

But ignorance of the law is no excuse; a tax return should be submitted annually, and taxes should be paid where applicable by all tax residents. Until now, the Inland Revenue has not been on top of foreigners living permanently in Spain, but in the past year or so, due to the financial crisis things have changed . Now the Spanish Government is tightening things up.

So don’t delay, think about becoming a tax resident and submitting an annual return. This should be done during the months of May and June, and we make appointments to see our Accountant in May each year.

Pensioners with low monthly pensions will probably not have to pay any income tax as a result of their tax return. However, if the living here over 183 days applies to you, you still need to submit one, even if it is a nil return, and even if your pensions or income are taxed in the UK. Contact Ana office@spanishsolutions.net for any help.

Also, please be aware that a green Residencia certificate does not mean you are a fiscal resident, only registering properly for tax means you are a tax resident of Spain. And not having a green certificate does not mean that you do not have to pay taxes, either non resident or resident. Everyone with a property in Spain should be making a tax return, either a non resident one, or a resident one.

20 Comments

  • Angela Bik

    Hello. I work 4 moth a year in norway and get taxed there. Is it possible and if how that i get relieved from paying these taxes in norway and get taxed therefore in spain? I do have my green residency card.
    I am looking forward hearing from u.
    Thank u
    Angela Bik

    • Nicola Ryan

      Good Afternoon Angela,

      We understand your concern.

      In this case it would be best to speak to a Fiscal Advisor (accountant), here in Spain. They will provide tax advice based on your current situation and ensure you are not taxed twice, we hope this helps.

      Kind regards
      Nicola

  • Marios

    Good evening. I came to Spain to work in an institute for three years. I got the NIE, the social security number etc but due to personal reasons I leave permanently. I stayed here for three and a half months and got paid for the three of them. Do I have to pay taxes even though I am leaving the country?

    • Nicola Ryan

      Good Morning Mario,

      Thank you for your enquiry.

      Yes, you should pay your taxes for the time you worked in Spain.

      Should you need any assistance with this please do not hesitate to contact us, we would be delighted to help you.

      Kind regards,
      Nicola

  • Thomas Priscott

    Hi, I have been living and employed in Spain for a year and a half, I am now in a position where I am looking to become a contractor for the same company self-employed from the UK. I need to understand how to set up Tax payments in Spain and how easy it is to do. I am able to set up as self-employed in the UK very easily but I shall continue to live in Spain. Any advice and help would be greatly appreciated.

    • Amanda Thomas

      Dear Thomas, Please contact office@spanishsolutions.net (Ana) letting her know your area. She can only help if you are local to us, With kind regards

  • Gerald David Pickering

    Hi,we tend to do about 2 months in Spain then 1 month back in the uk.We do not want Spanish residency as it would cost a fortune to in effect have 2 more months than the allowance ie 8 months per year.we are ok to pay taxes for these 2 months but not for the whole year.How if allowed does this work. Regards

    • Jane

      Hi Gerald

      As things stand in 2021 you will be able to stay 90 days in every 180 days. If you become a resident you then become a fiscal (tax) resident but you cannot pay for only the months you are here.

      Kind Regards

      Jane

  • Linda

    I have received a document from Spanish Tax office which has the employer name of the last company I worked for in the UK back in 2016. I live in Spain previously for one year and paid tax, then left I lived in London for 2 years, making the decision to move permanently back to Spain in 2016 and have worked here ever since. Is there I possibility I am liable for something for the two years I lived in London. I did not declare I have left Spain. I do have my P60 which shows my last UK employer and all my tax documents from 2016 to date.

    • Jane

      Hi Linda

      I would suggest you contact a local fiscal advisor to look at the document and check with the Spanish tax office.

      Kind Regards

      Jane

  • Vincent

    I and my partner are 63 & 60 and UK residents and tax payers; I am part retired with a small consultancy business that operates only in the UK and my partner fully retired from NHS with an NHS pension; we both also have private pensions and state pensions as of 2023,& 2025 respectively. we are property owners in Granada and would like to visit for up to 180 days per year but no more; should we apply for residency and if we do as long as we don’t exceed 6 moths can we be resident in UK for tax purposes; or shall we apply for non lucrative visas.

    • Jane

      Hi Vincent

      As long as your 180 days are split to 90 in each 180 then you do not require to be resident.

      Kind Regards

      Jane

  • Peter oreilly

    I have a property in Spain and wish to stay for more than 90 days but not more than 6 months in a year. I pay tax in the Uk. If I take residency is this Ok.

    • Jane

      Hi Peter

      Taking residency means you intend to live in Spain, it is not an option to allow you to spend more time. You would require to meet various criteria for financial and healthcare. The criteria has not been announced for UK citizens after Brexit so please sign up for our newsletter for updates.

      Kind Regards

      Jane

  • John Roberts

    I suspect my question is very similar to hundreds of thousands of other people…
    I have a prop­erty in Spain Estepona and wish to stay for more than 90 days but not more than 6 months in a year. I pay tax in the Uk. If I take res­id­ency is this Ok. I know this was impossible to answer before Brexit The UK government tax office tells me that if I live in Spain for Leston 180 days I will have to pay my taxes in the UK How would the Spanish authorities see my TIE residency… I am retired I have a state pension and I also have income from a number of rental property. I do hope this is not too complicated a question to ask john

  • margaret

    can i stay in spain for 6 months continuous, say from january to june without being a tax resident. I assume i have to be out for 6 months then, meaning i cannot return until the following january. this is a very confusing item. People are telling me i can do this. I am not sure i can. Please advise me. Also does it mean that it starts from january. I think it must start from the 1st day you enter spain, then you start counting.

    • Jane

      Hi Margaret

      You do not say if you are a Spanish resident, or your country of citizenship. If you are in Spain for 183 days or more then yes you will become a fiscal resident. If you are a UK resident you can now only spend 90 days in every 180 days in Spain. I hope this helps.

      Kind Regards

      Jane

  • B. H.

    Hi, we are arriving to live in Spain on November, We spect to have sold our house in the UK by the end of October. Are we liable to pay tax on the profit of the sale in Spain? would be liable to pay tax for the whole year or just from November? Thanks!

    • Nicola Ryan

      Good Morning B.H,

      Thank you for your enquiry.

      You would be liable to pay taxes in Spain, on your worldwide income, if you are resident of Spain and been in the country for 6 months or more from January to December, we hope this helps.

      Kind regards
      Nicola

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