Spain has a progressive tax system, with tax rates increasing as income levels rise. Expats living and working in Spain are subject to the same taxes as Spanish citizens. Income tax is levied on worldwide income and is calculated based on the individual's tax residence and family situation. The standard rate of income tax in Spain is 19%, but it can range from 19% to 47% depending on the individual's income level. In addition to income tax, expats may also be required to pay social security contributions and property taxes.

One important thing to note for expats in Spain is the country's "double taxation" agreements with other countries. These agreements are designed to prevent individuals from being taxed on the same income in both Spain and another country. Under these agreements, income that is earned in one of the signatory countries may be exempt from tax in the other country, or the individual may be eligible for a tax credit to offset the amount of tax paid in the other country.

It is important for expats to understand their tax obligations and seek professional advice if necessary to ensure they are in compliance with Spanish tax laws. Failure to comply with these laws can result in penalties and other consequences, so it is essential to stay informed and take steps to ensure compliance.

In addition to the tax obligations mentioned above, expats in Spain may also be interested in the country's "non-resident" tax regime. This regime applies to individuals who are not resident in Spain for tax purposes, but who own property or receive certain types of income from the country. Under this regime, individuals may be subject to a reduced rate of tax on their Spanish-sourced income, depending on the specific circumstances.

Overall, expats in Spain will need to carefully consider their tax obligations and seek professional advice if necessary to ensure they are in compliance with the country's tax laws. By understanding their rights and obligations as residents of Spain, expats can avoid penalties and ensure that they are paying the appropriate amount of tax.

Get in touch

If you have any questions please contact us below. Alternatively you can book a free review or purchase one of our expat tax services.