Income and wealth in Spain may be subject to taxation even if it's earned by non-resident taxpayers.

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Tax residents in Spain are liable to pay taxes in the country for its worldwide income obtained during a tax year.

However, the obligation regarding taxes does not stop just for tax residents in the territory, the non-tax residents who have wealth in the Spanish country may have the obligation as well to submit tax returns and pay taxes under the Spanish non-resident regulations.

This is something that needs to be considered in the general context of expatriation or posting of employees, which could include a change of tax residency.

Real estate, investments, salaries, or pensions are some of the income that could be taxable in Spain for non-residents, at the general tax rate of 24%, although the tax rate may vary depending on the income specifics and the country of tax residency.

The most usual situation is the non-resident who has a property in Spain. The real estate taxation for non-residents in Spain follows the rules stated below, differing if the real estate is rented or not:

Note that after Brexit, the UK is now considered as a third country, with the consequent increase of taxes for the tax residents there who have a property in Spain.

At ExpatFeliu we will evaluate your case in detail.

Contact us for further information.

Montserrat Feliu Costa

Managing partner, ExpatFeliu