Tax Consultant in Spain

Our tax consultants in Spain provide guidance to expatriates looking to make Spain their permanent home and foreign citizens opting to invest in the country. We strongly advise reaching out to a tax consultant in Spain right from the start. By sharing your future plans and details about your foreign assets, our tax consultants will skillfully optimize the application of Spanish Tax Law and leverage double taxation agreements to maximize your tax savings.

Understanding Spanish Tax Law

Comprehending the intricacies of Spanish Tax Law is a complex matter. Tax legislation in Spain is dynamic and demands a specialized professional with substantial experience. For expatriates settling in Spain or foreign investors, having a tax consultant who is well-versed in international taxation is crucial. In such cases, the expertise of our tax consultants in Spain in applying double taxation agreements is paramount. Through the ESESA Business School, Rosana Tejada completed a Master’s in Tax Advisory and an Expert Course in Taxation for Non-Residents and International Taxation.

What is the role of a tax lawyer in Spain?

The role of a Tax Lawyer in Spain is significant and comes with its challenges. As qualified professionals, our duty is to explain the tax implications in Spain to our clients, study their global assets, and assess how the move to Spain may impact them. Our Law Firm advises clients to research and plan taxes and relocation dates before moving to Spain. This proactive approach enables them to save on taxes in Spain.

Many clients from the UK, Canada, the United States, Ireland, and Europe need help understanding how to declare and navigate the Spanish tax system. As an expatriate, understanding the existing deductions and the tax laws of the home country, which may differ significantly from Spain, is crucial. Once you live permanently in Spain, the applicable tax laws will be those of Spain, along with the double taxation agreement.

While we, as professionals, empathize with our clients, it’s not always pleasant to communicate that a product exempt from taxes in their home country may be subject to taxation in Spain when redeemed as an expatriate. However, there are strategies and planning that can help minimize taxation in Spain. Another common scenario is the taxation or possible deductions related to capital gains from selling their primary residence in their home country. If the sale occurs while already a tax resident in Spain, advanced planning is necessary to meet requirements, apply potential tax deductions, and minimize taxation in Spain. Otherwise, they must fulfil their tax obligations to the Spanish tax authorities.

In essence, the role of a Tax Lawyer in Spain is to inform clients about the tax implications and provide sound fiscal planning aimed at minimizing taxation in Spain.

What Our Tax Consultants in Spain Offer

Our law firm provides tax advice to freelancers, companies, and private individuals, including expatriates and non-residents.

The advisory services are typically divided into three main categories:

Tax Planning

We analyze the assets for proper fiscal planning, calculating the tax impact in Spain.

Tax Declarations

We complete tax declarations and submit them to the Spanish Tax Agency (AEAT).

Resources before the AEAT(Spanish Tax Agency)

After studying the case, we advise our clients on the possibility of appealing a tax assessment and guide them through the necessary procedures.

Do you need a Tax Consultant in Spain?

Services offer:

The Tax Return in Spain

The tax return in Spain, referred to as the Personal Income Tax (IRPF or Declaración de la Renta), imposes a tax on the worldwide income of all taxpayers, including expats residing in Spain. This includes various income sources such as pensions, shares, bonds, rental incomes, capital gains, interest, dividends, and personal income from work.

Non-Resident Tax 

Those renting out a property in Spain as non-residents are subject to the Non-Resident Income Tax (IRNR or Impuesto sobre la Renta de No Residentes). Even if they live abroad, foreign property owners in Spain must fulfil their tax obligations. European property owners must pay tax on the net rent, which is the income minus the allowable expenses.

However, non-EU property owners (extracomunitarios) cannot deduct expenses, resulting in a higher tax burden than EU resident citizens. This discriminatory situation is currently under review by the Audiencia Nacional, awaiting a resolution to address this inequality.

Form 720

Asset Declaration – Form 720: Every individual and legal entity must fill out Form 720 to disclose foreign assets located outside of Spain surpassing €50,000.

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Inheritance Tax

Inheritance tax in Spain affects both residents and non-residents, and it’s a topic that often prompts inquiries from clients dealing with the aftermath of a loved one’s passing in Spain. To provide comprehensive assistance, we’ve curated a detailed guide on Spanish inheritance tax, addressing any questions or uncertainties you might encounter.

The Spanish inheritance tax, known as ISD in Spain, becomes applicable when the inheritance from a deceased family member, whether money, property, or any other asset, is transferred. It’s essential to note that inheritance tax regulations vary across different regions of Spain, underscoring the importance of obtaining information tailored to your specific circumstances.

For further insights into topics such as tax allowances, property inheritance considerations for non-residents, and details about intestate deaths, we invite you to explore our dedicated page on Inheritance tax in Spain.

Non-resident tax obligations

As non-residents in Spain, depending on the type of operation you carry out, there will be different tax implications.

The scope of this tax extends beyond just real estate, including houses, flats, lands, and plots. Economic rights, encompassing shares, bonds, stocks, prizes, compensation, property damage insurance, movable property, and various other assets, are also within the purview of this tax.

Here are some of the tax obligations for non-residents:

If you sell a property, the tax implications as a non-resident in Spain include capital gains tax and the Municipal Capital Gains Tax.
Capital gains on the sale of furniture along with a property in Spain are subject to taxation for non-fiscal residents.
Possessing a property in Spain for personal use and enjoyment requires compliance with non-resident tax obligations.
If you receive an inheritance in Spain as a non-resident, you will have the fiscal obligation to file the corresponding declaration.

Do you need a Tax Consultant in Spain?

Tax advice

Capital gains tax and property sales

Whether you have tax resident status or are a non-resident, selling a property in Spain has tax implications.

Article 24 of the Non-Resident Income Tax Law (LIRNR) and its correlation with Article 33 of the Personal Income Tax Law (LIRPF) delineate the quantification of capital gains for both resident and non-resident taxpayers.

In the computation of acquisition and transmission values, one can consider the associated expenses in each transaction. This involves factoring in purchase expenses like VAT or Stamp Duty, notary and property registry fees, legal fees during acquisition, and deducting expenses incurred during the sale, such as the municipal capital gains tax.

For individually owned properties, whether by tax or non-tax residents, acquired before December 31, 1994, the reducing coefficients stipulated in the regulations for these cases are applicable (LIRPF, DT 9th; IRNR, DT única).

Non-resident taxpayers engaging in multiple real estate sales within the same fiscal year cannot offset losses from one transaction against profits from another. Each operation is independently calculated, limiting taxation to gains without the option to offset losses.

Net Profit = Sales Price + Investment and Improvement Costs – Purchase Price

In the case of rented properties, the capital gain calculation requires a reduction in the acquisition value by the fiscally deductible depreciation amount as per Article 40 of the Regulations of the Personal Income Tax Law (RIRPF), irrespective of whether it was deducted during the rental period.

Net Profit = (Sales Price + Investment and Improvement Costs – Depreciation) – Purchase Price

Depending on the type of tax implications and your status as a tax resident or non-resident, the tax declarations to be filed and their deadlines will vary. Here’s a summary:

Tax Residents:

Tax Return (IRPF Form 100): The fiscal year in Spain runs from January to December. The filing deadline is published each year on the AEAT website.
Declaration of Assets Abroad (Modelo 720): The filing period is from January 1 to April 1.
Informative declaration on virtual currencies located abroad (Modelo 721): The filing period is from January 1 to April 1.
Wealth Tax (Modelo 714): The filing deadline is published yearly on the AEAT website.
Freelancer VAT Declaration (Modelo 303): Obligations and filing deadlines are published on the AEAT website.
Corporation Tax (Modelo 200): Obligations and filing deadlines are published on the AEAT website.

Non-Tax Residents:

Modelo 210: Depending on the type of income, the deadlines are as follows:

  • Incomes from property transfers: Within three months after one month from the property transfer date.
  • Imputed incomes from urban real estate: The following calendar year after the accrual date (December 31 of each year). For online filing, the tax debt can be directly debited from January 1 to December 23.

Do you need a Tax Consultant in Spain?

Beckham Law

The Impatriation regime, commonly known as the Beckham Law, is designed for foreigners relocating to Spain for work, whether as Digital Nomads or under an employment contract with a Spanish company, seeking residency in Spain as highly qualified workers. If you’re curious about the specifics and requirements of this unique tax system, feel free to explore more details by clicking here. 

Tax reliefs and deductions

For Tax Residents

Let’s highlight some key deductions for tax residents:

  1. Main Residence Purchase: Applicable only for those who purchased in 2013.
  2. General Reduction of €2,000: Applicable to income from work and pensions, benefiting expatriate residents with such income, regardless of its origin.
  3. Reduction for Rental Income: This applies to rental income generated in Spain and abroad.
  4. Exemption for the Sale of Habitual Residence: For individuals over 65, the profit from selling the habitual residence is exempt from income tax.
  5. Transfer of Assets and Liabilities: Applicable to those under 65.
  6. Reinvestment Exemption: Exemption for the sale of the primary residence abroad.
  7. Deduction for Energy Efficiency Improvement Works: Applies to home improvements for energy efficiency.
  8. Exemption of 50% on Real Estate Transition in 2012: For real estate acquired in 2012.
  9. Reductions in Capital Gains: This applies to the transfer of real estate acquired before 1995.

For Non-Tax Residents

  1. Exemption of 50% on Real Estate Transition in 2012: Applies to real estate acquired in 2012.
  2. Reductions in Capital Gains: Applicable to the transfer of real estate acquired before 1995.

Our Tax Consultants

In our law firm, Rosana Tejada and Verónica Pirau can assist you with advice, catering to both expatriate residents and non-residents in Spain. Their extensive experience in international taxation focuses primarily on tax matters related to international double-taxation agreements.

Rosana Tejada
Rosana Tejada
Tax Advisor – English Speaking

· Languages: English and Spanish.
· Degree in Economics & Labour Law.
· Master´s degree in Tax Law (ESESA).
· Expert course in Taxation of non-residents and international taxation (ESESA).
· Master´s degree in Real Estate Asset management IE University in Madrid.
· College of Economists of Malaga full member – Collegiate Number 4471.

+34 – 676 815 262
tax@tejadasolicitors.com

Veronica Pirau
Verónica Pirau
Accountant

· Degree in Accounting and Finance. University of Malaga.
· Course on practical taxation imparted by the Malaga Official Economists College.
· Languages: English, Spanish, Rumanian and Russian.

+34 – 676 815 262
economist@tejadasolicitors.com

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Why Trust Our Tax Advice?

Taxpayers worldwide desire fair and efficient tax systems. However, the reality often differs.

People, markets, and entire economies require tax systems that are effective, transparent, and aligned with 21st-century needs.

Countries and jurisdictions are increasingly entering agreements on the Exchange of Tax Information.

New technologies like Artificial Intelligence position the Spanish Tax Agency among the most efficient administrations globally.

Digitalization, coupled with AI and the ease of remote work from other countries, makes it increasingly common for taxpayers to plan their tax matters.

Therefore, it’s crucial to contact a law firm specializing in tax planning for expatriates. Whether you intend to move to Spain for remote work, retire as a pensioner, or manage your foreign-owned company from Spain, the tax implications can be diverse. Only with thorough tax planning can you achieve fiscal optimization.

We often receive clients from the United States, Canada, the United Kingdom, Ireland, and Europe in general, who are concerned about their tax matters. We always advise our clients to consult with a tax advisor in Spain to make the best decisions before moving. Sometimes, clients modify their initial plans after the initial meeting, either because the taxation is higher than expected or because timing adjustments can reduce their tax bill. It all depends on various factors.

Contact our tax lawyers 

Rosana Tejada advises non-European citizens who decide to expatriate to Spain through any visa (non-profit visa, Golden Visa, Digital Nomad Visa) to coordinate the visa process with tax matters. Surprises may arise, and aligning both aspects is crucial for a smoother transition.

At Tejada Solicitors, we take a holistic approach to handling your case. Our team, consisting of an immigration specialist, tax lawyer, and property conveyancing expert, works together to examine and analyze your situation thoroughly. Our commitment is to streamline the entire process, reduce stress, and guarantee the success of your relocation to Spain. Rely on the expertise and support of our specialized legal team, well-versed in these intricate procedures.

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