what lawyer do i need to help me with living in spain regarding taxes

The process of managing your tax declarations, optimization, and planning in Spain may be much easier with the help of accounting and tax advice services such as Balcells International Lawyers Group or ATA Spain, who can assist you with every phase of the process. Filing US taxes from Spain

Full Answer

How can I reduce my taxes in Spain?

Apply for the Beckham LawThe Beckham Law is a special tax regime that is applied to foreigners who come to Spain due to work reasons. ... Basically that you can avoid paying a progressive income tax that can rise up to 45%, and pay a flat fee of 24% instead.So, as you can see, this creates important tax savings for you.

What taxes do I pay if I move to Spain?

The general flat income tax rate for non-residents is 24%, or 19% if you are a citizen of a country in the European Union or the European Economic Area. Other income is subject to Spanish non-resident taxes at the following rates: Capital gains resulting from transferred assets are taxed at a rate of 19%.

How do I prove my tax residency in Spain?

Individuals are resident in Spain for tax purposes if they meet at least one of the following criteria: Spend more than 183 days in Spain during a calendar year. In determining the period of stay, temporary absences are included in the count, except when the tax residence in another country can be proven.

What happens if you don't pay taxes in Spain?

Failure to pay tax can result in penalties of between 50% and 150% of the tax owed, plus interest. Late payment can result in penalties between 5% to 20% of the tax involved, plus interest.

Can you be resident in Spain but not tax resident?

If you did not spend 183 days or more in Spain during the calendar year (January 1 to December 31), you are in the world of non-tax residents. You may own a home or visit a few times a year, but you aren't in Spain over 183 days in a calendar year. Then you would not be liable for taxes in Spain.

Can I live in Spain and pay tax in UK?

Tax. The UK has a double taxation agreement with Spain so that you do not pay tax on the same income in both countries. Ask the relevant tax authority your questions about double taxation relief. You should get professional advice on paying tax in Spain.

Can you be a resident in both UK and Spain?

Unfortunately, it's not possible to be resident in both the UK and Spain and it never has been. Even before Brexit, you still had to choose which country you were resident in.

How long can you live in Spain without paying taxes?

If you spend more than 183 days per year in Spain (6 months), you will be regarded as a tax resident. On the other hand, only living from 1 to 182 days in the country will imply you are a non-resident.

How much is the resident tax in Spain?

General rate: 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19%. Capital gains generated from transfers of assets: 19%.

Do retired expats pay taxes in Spain?

Yes, expats in Spain need to pay taxes. The most basic tax that expats must pay in Spain is the income tax. The income tax is calculated upon the expat's worldwide income. However, if you are a Spanish non-resident, the income tax is calculated just upon the income generated in Spain.

Do I have to pay tax on my UK state pension in Spain?

Under this agreement, pension funds are only taxable in the country where the recipient has tax residency. Spanish residents with UK pensions are now only subject to Spanish income tax, meaning there is no UK pension tax in Spain.

What is the personal tax allowance in Spain 2021?

5,550 EurosPersonal allowanceUnder 65 years old5,550 Euros65+6,700 Euros75+8,100 Euros

What is an immigration lawyer in Spain?

An immigration lawyer in Spain is someone that can take care of all the legal aspects when you move to the country. A good immigration advisor, should understand your case and give you legal advice based on that. We know that sometimes bureaucracy in Spain can be hard to understand.

What taxes do expats pay in Spain?

Taxes in Spain for Expats: The most basic tax expats must pay in Spain is the income tax . An immigration tax advisor can help reducing the amount of taxes you will need to pay, by for example, helping you take advantage of the Beckham Law. Property Tax: When buying a house in Spain, you will be subject to 3 different taxes.

Do European citizens need a residence certificate?

Residence Certificates for European Citizens. European Union citizens do not need a residence permit when moving to Spain. Nevertheless, people moving to Spain from the European Union, will need a residence certificate. Even though the process of obtaining a residence certificate is really straightforward, an immigration lawyer can help you ensure ...

What is considered a tax resident in Spain?

A person has economic or business interests in the country. A person’s spouse or minor children are classified as tax residents in Spain (unless other tax residencies can be proven).

How much tax do Spanish residents pay?

Spanish tax residents pay tax on their income worldwide at the personal tax rates, which are progressive. Non-residents pay a flat 24% tax rate. Rates are: Additional information can be obtained from the web site for Agencia Tributaria. There are no state or regional income taxes, although Spain does have property taxes.

What is the VAT rate in Spain?

Spanish Taxes. Along with income taxes, there are also other kinds of taxes in Spain everyone should be knowledgeable of. A value added tax (VAT) of 18% is imposed on consumer goods. The VAT is lowered to 8% for essential goods, such as water, food, and medicine. A few items are taxed using a rate of 4%.

What is the tax treaty between Spain and the United States?

Tax Treaty. There is a treaty between Spain and the United States, which helps determine which country to pay taxes to, and when the taxes must be paid. This treaty will help make sure you pay taxes to the proper country. It is always best to consult a professional tax advisor for help in understanding the treaty.

Does Spain have state income tax?

There are no state or regional income taxes, although Spain does have property taxes. Capital gains get tax imposed at a rate of 19% up to a gain of EUR 6,000. Gains over EUR 6,000 get taxed at 21%.

Do foreigners pay taxes on Spanish Social Security?

Foreign workers in Spain must pay taxes into the Spanish social security program unless they obtain a coverage certificate from their native country showing that they are continu ing to make contributions to that system. For Spanish residents, their contributions can be deducted on their taxes.

Does Spain have wealth tax?

Spain does not impose a wealth tax. Inheritance tax may be imposed in various regions, depending on the location of the event that triggered the tax. Spain has property taxes, which depend on the municipality and region where the taxpayer lives. Cities impose a motor vehicle tax, which varies by city.

Who has to file a tax declaration in Spain?

Who has to make a Spanish tax declaration? With very few exceptions, anyone resident in Spain (more than 183 days) for tax purposes and with any income or capital gains anywhere in the world has to file a tax return. Non-resident property owners are also obliged to file tax returns.

What is the classification of income in Spain?

Classification of income: In Spain, all income falls into one of the following categories: Income from work (paid employment, pensions). Investment income (interests, dividends). Income from Real Estate (rentals, second homes). Income from economic activities. Capital gains (lottery, gambling winnings, government grants, ...

Is Spain a non-resident?

Non-residents income tax liability. Non-residents are liable for this tax on any income arising in Spain, such as income from property in Spain, or income derived from any business in Spain. Property owners are taxed on their property income or value of the property.

What is the tax rate for expats in Spain?

The Spanish government created a program to encourage expats to move to Spain. This program offers foreigners who move to Spain a fixed income tax rate of 24% for the first six years they live there.

What is the corporate tax rate in Spain?

For business owners living in Spain, one of the primary concerns is the potential corporate tax. In Spain, the general corporate tax rate is 25%. This is a flat tax. However, there are some ways to lessen this burden. For example, new limited companies can pay reduced taxes.

Why do expats file for Spanish tax extension?

This means that US expats in Spain typically file for an extension for their US taxes because they are waiting for their Spanish tax documents. Spain has a progressive tax system. The calculation of individual taxes involves many different factors.

Why is the US tax treaty with Spain important?

US Spain tax treaty helps expats avoid double taxation. The Tax Treaty between the United States and Spain deals with income taxes between the two countries. This Income Tax Convention with Spain, the official name of the treaty, helps determine which taxes should be paid to which country in a variety of situations.

What is Spain famous for?

Spain is famous for its weather, food, and culture. Countless US expats have made it their home. Whether you prefer city life in Madrid or the beaches of Costa del Sol, Spain offers a high quality of life. However, many US expats find that living in Spain can complicate their tax obligations. Whether you are an employee or an entrepreneur, there ...

Can US expats live in Spain?

Many US expats have made Spain their temporary or long-term home. However, complicated tax agreements between the countries can leave expats overwhelmed. This article is intended to give a general overview. It cannot replace advice from a qualified tax accountant, as every situation is different.

Do US expats have to declare assets in Spain?

US expats in Spain need to declare their assets. Despite these expat tax benefits, there are some extra obligations that come along with being a US citizen and a Spanish resident. Both governments require the declaration of certain assets.

What taxes are liable for property in Spain?

Furthermore, if you own property in Spain, you are liable for various local taxes such as the IBI. This tax is comparable to British council tax and finances public services and amenities such as rubbish collection and road maintenance.

How long do you have to live in Spain to be considered a resident?

An overview of your resident tax obligations. If you have been living in Spain for six months of the year – and not necessarily consecutively – then you are classified as a resident for tax purposes. This is also the case if you have your main vital interests in Spain, such as your business or immediate family.

How many days can you live in Spain?

The rules are actually very clear cut – if you live in Spain for more than 183 days per calendar year, you are classified as a resident in Spain. These days don’t have to be sequential; if you live in Spain for a few months in spring and a few months in winter totalling 183 days that year, then you’re considered to be resident.

When do Spanish taxes start?

The Spanish tax year coincides with the calendar year, so the tax year runs from 1 January to 31 December. Residents in Spain will file their tax declaration at the end of June – at the time of writing, the deadline was the 30th June.

Does Spain have dual tax?

Spain has dual tax agreements with several countries. This legislation ensures that people don’t pay taxes on their income twice. In some cases tax has to be paid in the country of origin, and in these situations, they are either declared as exempt or tax paid there is deducted from the tax to pay in Spain on the same income.