Tax in Spain
The Spanish tax authorities cast a wide net and any individual either residing in Spain or owning Spanish based assets will need to comply with Spanish tax legislation. The Spanish authorities rigidly enforce their taxes and charge high penalties and surcharges for non-compliance.
Scope of tax in Spain
Spanish tax law does not have the same concept of domicile and residence as does UK or Ireland and upon taking up residence in Spain an individual will be liable to income, capital gains and inheritance tax on his/her worldwide income and assets. Non residents are liable to tax in Spain only in respect of Spanish sourced income or Spanish based assets.
Service
At Malaga law Solicitors we offer a complete tax service to all our clients from basic compliance right through to complex tax planning strategies. The firm is fortunate to have on board a highly experienced Chartered Accountant who will take clients through all the tax consequences of becoming tax resident or of inheritance tax issues arising from owning property in Spain and will discuss with clients how exposure to Spanish taxes can be legally reduced or mitigated.
Our tax work typically covers the following:-
- Applying for Spanish NIE number (Spanish tax identification number or número de identidad de extranjero)
- Assistance in dealing with the Spanish Revenue
- Personal tax planning for tax in Spain
- Non-resident tax compliance
- Spanish inheritance tax planning
- Spanish capital gains tax planning
- Property taxes
Impact of double tax treaties
Spain has entered into double tax agreements with both UK and Ireland which means tax payers will either not be taxed twice or will receive credit in their country of residence for any Spanish tax paid.
