Spain’s fiscal/tax year is the natural calendar year. Income taxes in Spain should be paid between May 1 and June 30 for the previous year’s income (so this May/June for 2018). With a DNI or NIE, you can apply for a Número de Identidad Fiscal (NIF) in order to pay your taxes in Spain.
Tax residents will need to pay income taxes in Spain and are generally defined as those who reside in Spain over 183 days in each calendar year and/or have their main financial interests or family in Spain.
However, in many cases you do not need to file a tax return in Spain when you are paid by a single payer (wages, pensions, or unemployment benefit). There are two exceptions that second or subsequent income does not exceed a certain amount per year, and employment income is not derived from self-employment (you have to do a separate return).
Income in Spain is roughly defined as:
• Wages and salaries, either as a salaried employee or as a businessperson
• Pension benefits
• Dividends, yields, interest and capital gains
• An employer’s pension contributions
• In-kind benefits
You are taxed on your world-wide income.
if you have any queries or need assistance preparing a Spanish Residents Tax Return email Ana on for an appointment, as Residents Tax is quite complicated.
2 Comments
Anthony O’Reilly
Good Morning,
My wife and me have residencia and may need to prepare Spanish residents tax returns.
Our only income is, we each have a UK state pension and each have an NHS pension.