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However, the assets may be able to benefit from a variety of tax-efficient vehicles which could help you reduce any unnecessary tax payments. The purpose of the law is to reduce the amount of tax avoidance while also maximising Spanish tax revenue, primarily from expats living in Spain.Īssets which are required to be declared include, but is not limited to:

Since March 2013, if you live in Spain and own assets in excess of €50,000 outside of Spain you are required by law to declare those assets (up to the 31 st December of the previous year) to the Spanish government by the 31 st March each year (from 2013 onwards).įailure to correctly declare any offshore assets could incur severe penalties or even a criminal charge (if the tax avoidance is in excess of €120,000). In 2006 Spain signed a double tax treaty with the UK which means that you should not have to pay tax twice on the same income, and you should only pay tax in the UK or in Spain, unless the tax treaty gives the right to tax in both countries, but, in that case, the country of residency will avoid double taxation. The first thing to know is that, unlike in the UK, the Spanish tax year runs from January to December. It’s therefore important to remember that the information found in this article is only a guide and before making any decisions or submitting any tax returns in Spain, you should seek independent advice, which you can do by entering your details using the form and we will arrange for an expert in Spanish tax matters to provide a free consultation via our free introduction service. Staying abreast of tax in Spain is made harder still by the Spanish government who is regularly changing its tax rules, and often those most affected are expats holding significant assets abroad. Given that Spain has become of the most popular destinations for foreign nationals to relocate to anywhere in the world, for people living in Spain, understanding the many different taxes in Spain is vital.

Taxes in Spain can be very complicated with the potential for severe penalties for anybody who fails to declare and pay the correct taxes in Spain.