Spanish Income & Wealth tax reminder
Raymundo Larraín Nesbitt, June, 2. 2021
Lawyer Raymundo Larraín gives us a gentle reminder on the tax obligations that residents in Spain must face (and in some cases, even non-residents).
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Article copyrighted © 2021. Plagiarism will be criminally prosecuted.
By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
8th of June 2021
I have written this short article as a gentle reminder for all taxpayers resident in Spain.
1. IRPF or personal income tax
Tax residents need to file income tax (IRPF, in Spanish) before the end of this month on their worldwide income & assets.
You are deemed tax resident in Spain if you meet one, or more, of the following points:
- You spend more than 183 days in a calendar year in Spanish territory.
- Your centre of financial interests is located in Spain.
- Your spouse and/or underage children live in Spain.
If you meet any of the above criteria, you should be filing taxes in Spain.
Scores of expatriates have filed for Spanish residency over the last two years, and now need to meet their newly-acquired tax obligations derived from their new tax status.
Deadline to file this tax is end of June 2021.
2. Wealth tax
In addition to the above tax obligation, affluent residents may need to file as well for wealth tax in Spain. As there is devolved competencies on this matter, I won’t go into details as each region is empowered to enact their own laws on this – please seek tax advice from us if it affects you.
Additionally, even if you are non-resident in Spain, but happen to hold a sizeable estate in Spain, you must file wealth tax in Spain.
In other words, and for the avoidance of doubt, wealth tax is paid by both residents and non-residents alike. The difference are the tax allowances at play.
The deadline to submit this tax is also by the end of June 2021.
“The income tax has made liars out of more Americans than golf.” – Will Rogers
William Penn Adair Rogers (1879 – 1935). Was an American stage and film actor, vaudeville performer, entertainer, cowboy, humorist, newspaper columnist, and social commentator from Oklahoma. He was a Cherokee citizen born in the Cherokee Nation, Indian Territory.
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Related tax articles
- Spanish Wealth Tax (Patrimonio) – 8th November 2011
- Taxes on Selling Spanish Property – 8th December 2014
- Changes to Spain’s Inheritance and Gift Tax Law – 21st February 2015
- La Complementaria or ‘Bargain-Hunter Tax’ – 8th May 2015
- Taxes on Buying Spanish Property – 8th July 2015
- Non-Resident Taxes in Spain – 8th December 2015
- Spanish Inheritance Tax for Non-Residents (Part I) – 21st February 2016
- Spanish Inheritance Tax for Non-Residents (Part II) – 8th March 2016
- Non-Resident Income Tax – 8th December 2017
- Tax advantages on becoming resident in Spain – 8th March 2018
- Non-Resident Imputed Income Tax (Fiscal Representation Service) – 8th October 2018
- Taxes on Buying Spanish Property – 8th December 2018
- Capital gains tax mitigation on selling (or gifting) property in Spain – 8th May 2019
- Tax form 720 – Modelo 720 – 21st of February 2020
- Spanish Income & Wealth tax reminder – 8th June 2021
Article originally published at Spanish Property Insight: Spanish Income & Wealth tax reminder
Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. No delusional separatist politician was harmed on writing this article. VOV.
2.021 © Raymundo Larraín Nesbitt. All Rights Reserved....