Residencia fiscal (tax residency) determines which country has the primary right to tax your worldwide income. In Spain, you are considered a tax resident if you spend more than 183 days per calendar year in the country, if Spain is the centre of your economic interests, or if your spouse and dependent children reside in Spain. Tax residents must declare and pay tax on their worldwide income using the annual declaracion de la renta (income tax return). Non-residents owning Spanish property still have tax obligations: they must file an annual Modelo 210 declaring either imputed income (if the property is not rented) or rental income. Non-residents pay a flat 19% tax on rental income (for EU/EEA citizens) or 24% (for non-EU citizens), while residents pay progressive rates from 19% to 47%. Spain has double taxation treaties with many countries to prevent being taxed twice on the same income. Before making a move, it is advisable to consult a tax advisor familiar with both Spanish tax law and the tax regime of your home country. Getting your residencia fiscal status wrong can lead to penalties and unexpected tax bills in both jurisdictions.
Residencia Fiscal — Spanish Property Glossary
Frequently Asked Question
When are you tax resident in Spain?
You become tax resident in Spain if you spend more than 183 days per year there, if Spain is the centre of your economic interests, or if your spouse and dependent children reside in Spain.