Expatriate Tax Consultancy

When considering the possibility of changing residence, it is crucial to have a thorough understanding of the obligations that arise from it.

Non-Resident Taxation

 

At our firm, we have extensive knowledge and experience in all the issues affecting expatriates, including moves from Spain to abroad and from foreign countries to Spain.

When considering the possibility of changing residence, it is crucial to have a thorough understanding of the obligations that arise from it. These obligations include, on one hand, the tax costs associated with becoming a resident in the new country and, on the other hand, the level of information and communication obligations required in the new state of residence.

All of this is also affected by the non-resident status in the state being left and the taxation that arises from such a condition. The previous tax analysis is carried out from the perspective of an individual who was a resident in Spain and then relocates to another country, as well as from the perspective of a foreign individual who becomes a resident in Spain.

expats

We understand how difficult it can be to move to another country, which is why our aim is to ensure adequate compliance with legal and tax obligations in Spain, streamlining and simplifying compliance as much as possible to facilitate adaptation to the new residence for our clients. To this end, we provide the following services.

Analysis of the advisability of obtaining tax residency in Spain: description of the tax cost plus the formal obligations arising from this status.

Analysis of the advisability of maintaining non-tax residency in Spain: description of the tax cost plus formal obligations arising from this status.

Completion and submission of tax residency registration in Spain.

Completion and submission of tax returns on the Income Tax for Non-Residents, IRNR. Form 210 and Form 211.

Completion and submission of the declaration of Foreign Investments by residents in Spain, and investments by non-residents in Spain, using the following forms: D-1A, D-1B, D-2A, D-2B, D-4, D-5A, D-5B, D-6, D-7A, D-7B, D-8, DP-1, DP-2, DP-3 i DP-4.

Study and application for the visa for investor and entrepreneur residence.

Specific advice on tax obligations to be fulfilled in Spanish territory.

 

Frequently Asked Questions:

 

When am I considered a tax resident in Spain?

Tax residency in Spain is established if you have lived in the country for 183 days during a calendar year, without considering occasional absences.

Do I have to register at the City Hall?

It is advisable to register with the City Hall once you arrive in Spain in order to prove your residence.

When do I have to present Form 720?

Form 720 is presented during the month of March, and consists of reporting on the assets and rights that residents in Spain have abroad, provided that these exceed €50,000 as a whole, taking into account different types of categories of assets.

When do I have to present Form 210?

If you do not reside in Spain but have real estate in this country, you must submit form 210, either quarterly if you receive income, or annually if the property is at your disposal.

Likewise, if you receive other types of income in Spain you must also present Form 210 (if an Agreement to avoid Double Taxation or a multilateral standard does not establish that the income received should not be taxed in Spain or if the payer of the income does not has made the corresponding withholding).

When do I have to submit the personal income tax?

If you are a resident in Spain, you are required to submit the income tax return during the months of May to June of the following year, for all your worldwide income during the previous calendar year. There are some exempt minimum amounts that allow you not to declare, but only in very specific cases.

Do I have to declare the rent I charge for a property located in Spain?

Yes, through form 210 on a quarterly basis. Likewise, you must pay 24% of the amount of the income (in 2015). If a Convention to avoid International Double Taxation or a multilateral standard is applicable, the rate may be lower or there may be no withholding.

If I acquire residency in Spain, do I have to pay here for the worldwide income obtained?

Yes, any resident in Spain must pay tax on the worldwide income obtained. However, there is a special regime by which you are taxed as if you were a non-resident (fixed tax rate and only income submitted in Spain is subject to taxation).

If I acquire residency in Spain, can I pay taxes as a non-resident through a special regime?

Yes, any natural person who arrives in Spain if they meet certain requirements (worker or company administrator under certain conditions) can pay tax only on the income obtained in Spain and at the general rate for non-residents (24% in 2015 up to 600,000 Euros base). taxable on income from work).

When do I have to present the D6?

During the month of January of each year to declare securities located abroad.

If I go to work abroad, do I have to continue filing personal income tax?

It depends on whether the move abroad causes the individual to cease being a resident in Spain or not. If not, you must submit personal income tax but certain reductions and exempt amounts may apply due to performing work abroad.

Can I deduct taxes paid abroad in Spain?

Yes, the lesser of the following amounts will be deductible:
Tax actually paid abroad
Tax that should have been paid here.

If I work temporarily abroad, do I have to pay taxes in Spain?

Yes, if the situation is temporary you will continue to be a resident in Spain.

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