Do I need to pay taxes in Spain as a non-tax resident?
As a general rule, any income obtained by a non-tax resident will be subject to the Non-Resident Income Tax. The tax rate is typically 24% but it is reduced to 19% for tax residents in the European Union. Another advantage for EU tax residents is that they will pay on the net amount received. This gives the possibility to deduct the expenses linked to the income obtained, if any.
In addition to the above, the mere ownership of some assets such as Real Estate properties will also trigger the taxation subject to the Non-Resident Income Tax.
Real Estate properties will also be subject to the Real Estate Tax fixed by the Town Hall.
What about Wealth Tax and Inheritance Tax?
In the event there are assets and/or rights located in Spain, the owner, in the case of the Wealth Tax, or the heir, in the event of the Inheritance Tax, will be obliged to pay for such assets in Spain. This is regardless of whether or not they are tax residents in Spain.
Proper advice from a tax standpoint is crucial in order to reduce the exposure to such taxes and to reduce or avoid these taxes. For example, it will not be the same if a real estate property is acquired only by you or by you and your spouse or it will not be the same taxation if the acquisition is made through a mortgage or not. This is the type of advice necessary in order to reduce taxation and avoid contingencies.
If you have questions regarding your inheritance in Spain, the Inheritance Department will be happy to help you. It is important to have everything planned in order to reduce the taxes to be paid and to avoid any contingencies.
If you want to find out when you need to pay taxes in Spain, read our post about taxes in Spain.
If you want to find out when you are considered a tax resident in Spain, find out here.
If you want to learn more about our tax and accountancy services, click here.