The full guide
When do you become tax resident?
Spain looks at each calendar year. You’re treated as tax resident if any of these apply:
| Test | What it means |
|---|---|
| 183 days | You spend more than 183 days in Spain in the year. Short trips abroad usually still count as days here |
| Centre of economic interests | Your main business, work or investments are based in Spain |
| Family presumption | Your spouse (not legally separated) and dependent minor children live in Spain |
Residence applies to the whole calendar year: you’re either resident or not. If you arrive in March and stay, you’ll usually be resident for that year. Some special cases, such as the Beckham law, change how you’re taxed.
What changes once you’re resident
Worldwide income. You pay Spanish income tax (IRPF) on income from everywhere: salary, freelance fees, pensions, interest, dividends, rent and gains.
Progressive rates. General income is taxed on a scale set partly by the state and partly by your region. Savings income such as interest and gains has its own scale, from 19% up to 30% at the top.
New deadlines. You file a Renta return between April and 30 June for the previous year.
Double tax treaties
Spain has treaties with the UK, the US, Ireland, Canada, Australia and many more. They decide which country can tax each type of income and how you claim credit for tax paid abroad. For example, UK government service pensions are generally taxed only in the UK, while most private pensions are taxed in Spain. Read the treaty for your country, or ask an adviser.
Declaring assets abroad: form 720
Residents must file form 720 by 31 March if they hold more than €50,000 abroad in any of three categories: bank accounts, securities and investments, or property. After the first filing you only file again if a category rises by more than €20,000 or you sell something. Crypto held abroad has its own form, 721.
Wealth and inheritance taxes
Spain has a wealth tax on net assets above an exempt amount, plus a separate solidarity tax on very large fortunes. Regions set their own reliefs, so the bill depends a lot on where you live. Inheritance and gift taxes are also regional. If you have significant assets, take advice before you arrive.
Common mistakes
Assuming you’re still resident at home. Two countries can both treat you as resident. The treaty’s tie-breaker rules decide, so check them.
Forgetting form 720. Penalties are lower than they used to be, but filing late still costs money.
Ignoring small foreign accounts. Interest from any account is taxable income.
Frequently asked questions
Can I be resident in two countries?
Yes, under each country’s rules. Treaties then decide which country has priority.
Do I need a gestor or tax adviser?
Not for simple cases. If you have foreign pensions, investments or business income, an adviser often saves more than they cost.
