Tax Advisor in Spain
Avoid unnecessary payments, and problems with your tax return.
Tax advice for expats in spain
As an expat, keeping taxes in order in Spain is not always an easy feat. Our tax department, specialised in tax consultancy in Spain, can help you keep everything optimised and in order.
We make it easy for you to pay your taxes and tax obligations in Spain. Forget about complex bureaucratic processes.
English-speaking tax advisors and accountants in Spain specialised in employees, self-employed individuals, freelancers and companies.
Legal and accounting department specialised in all areas that your business needs: company incorporation, account optimisation, tax benefits…
Advice from a chartered tax advisor for individuals in Spain:
Whether as an employee, self-employed individual or freelancer, you may run into problems with your taxes that are difficult to solve without having a tax advisor.
Tax laws are sometimes difficult for a foreigner to understand and the administration has complex bureaucratic systems that can end up making you pay unjustified taxes or receive penalties for not complying in time or because you were not properly informed about.
A chartered tax advisor specialised in tax advice in Spain will help you keep your money safe.
Advice from a chartered tax advisor for companies in Spain:
In the case of companies, it is very important to be perfectly aware of the tax obligations that are acquired when starting up a business in Spain.
At Alecora we have helped more than 50 companies with their accounting needs and taxes in Spain (start-ups, established companies…).
If you have a company, request our accounting services to optimise your profits and keep your tax payments to a minimum.
English-speaking chartered tax advisors in Spain
We have English-speaking tax specialists in order to advise you perfectly and help you with all the Spanish tax legislation. The language barrier is eliminated so that you can enjoy the peace of mind of having all your taxes properly supervised.
Tax Simulation for Expats in Spain
If you are coming to Spain to work, you are looking for a job in our country or you are going to carry out a specific economic activity, our experts can carry out a simulation of the taxes that you will be liable to pay in Spain.
This service will allow you to determine the economic viability of your activities in advance.
Frequently Asked Questions about Taxes In Spain:
Answers to the most common questions about taxation and types of taxes in Spain for expats:
- What taxes should I have to pay if I become tax resident in Spain?
- Tax obligations for non-tax resident in Spain.
- What taxes should a company pay in Spain?
- When are taxes paid in Spain?
- What Happens if the Tax Administration Claim Non-Payment of Taxes?
- Contact an English-speaking tax advisor near me.
What Taxes Should I Pay if I Become Tax Resident in Spain?
If you become tax resident in Spain you are liable to file the following taxes once a year if you are above the nil rate band,
- Income tax return
- Wealth tax
- Overseas asset declaration (tax form 720)
Income Tax Return, Tax Form 100 (Filing Period 6th April – 30th June)
You would be required to present your worldwide – income, profits and losses on your income tax return as follows:
- Work income (wages, salaries, employer’s contributions into the employee’s
pension scheme, benefits in kind).
- Savings income (interest, dividends, annuity pension).
- Rental income.
- Capital gains and losses.
There are two different tax rates:
- General tax rate.
- Savings tax rate (savings incomes and capital gains).
In general, the taxes you should pay in Spain are regulated and depend on the income generated annually. However, consulting with a tax advisor in Spain can prevent abusive tax rates from being applied or non-compliance with the law.
Foreigners who are going to become tax residents in Spain could benefit from the Beckham Law. This tax law reduces the maximum tax you have to pay to a 24 % flat rate for income tax on income up to €600,000 or 19 % -23% for other income generated in Spain.
Moreover, income resulting from capital gains tax, interests or dividends generated abroad is not subject to tax in Spain.
Wealth tax is only applicable to Spanish assets under Beckham law and you will not be liable to submit tax form 720 overseas asset declaration.
Wealth Tax, Tax Form 714 (6th April -30th June)
Wealth tax is an annual tax payable on the total value of your taxable worldwide assets on 31st December each year.
Each individual has a tax-free allowance of €700,000 and tax residents in Spain have an extra allowance of €300,000 for their own main home.
The current nil rate band is €700,000 – €1,000,000.
Loans are deductible when calculating your net taxable wealth amount, providing that the amount borrowed was not used to buy or invest in assets that are exempt from Spanish wealth tax.
Assets to be reported are:
- Real estate.
- Assets related to your professional or business activity.
- Deposits and saving accounts and money in bank accounts.
- Bonds, treasury bills, obligations, loans, credits.
- Shares and securities.
- Life insurances.
- Temporary annuity or life time annuity.
- Luxury assets, such as cars, jewellery, boats, planes.
- Art objects and antiques.
- Rights of use, such as a time share.
- Administrative concessions.
- Intellectual property or industrial property rights.
Please note that there are specific Indicative tax rates applicable in different regions of Spain and you should check the rates applicable in the Region in which you live.
Overseas Asset Declaration, Tax Form 720 (Filing Period 1st March -31st March)
This tax form should be completed by any Spanish tax resident who owns assets outside Spain worth over €50,000.
It relates to asset values on the 31st of December of the tax year period.
The assets to be declared are divided into three groups; these groups are formed by:
- Accounts held with financial institutions (average balance over the last three months of the year and average balance of the year. This includes all kind of bank accounts and deposits, including credits accounts in all currencies, regardless of whether you have the right to withdraw the funds or not).
- All types of immovable property (real estate) and rights over such a property (the value is the total acquisition cost; you will also need to provide the information such as the type of the property, its location, date of acquisition).
- Shares and securities, life insurance policies, annuities, temporary or lifetime income generated from lending money, rights or other assets (including immovable ones) to foreign entities.
The obligation lies with the owner, the beneficiary or the authorised signatory. This also includes the assets held by a trust or fiduciary.
If the value of the total assets listed in each group above or the value of all three groups together are less than €50,000, you are not liable to report it.
The obligation continues for the following years provided that the value of your assets have increased more than €20,000 per group or taking into account all groups together. This obligation also applies in the event of a sale of any of the assets reported.
Penalties for non-compliance with the obligation are relatively high with a minimum penalty amounting to €10,000.
Tax Obligations for Non-Resident Foreigners in Spain
This is a complex situation where generally people are being affected without being aware. They are often paying duplicate taxes for the same type of income in two different countries.
If you are not resident in Spain, but you have income, dividends, capital gains, etc. in our country, you may find yourself in this situation.
Our legal department and accounting specialists will study your case and help you claim the refund of overpaid taxes through Double Taxation Agreements.
Real estate taxes: if you are a non-resident in Spain but you own a property in Spain, you are liable to submit your non-Spanish resident tax for the property in January each year and if you rent the property you shall submit this tax quarterly (you will be able to offset property expenses if you are resident in a European Union country). Please contact us and we will assist you to pay your taxes.
What Taxes Should a Company Pay in Spain?
When we talk about companies, there are three sections to which you should pay special attention when paying taxes in Spain:
- Impuesto de Sociedades (the equivalent of Corporation Tax): This tax is applied to the profit generated by the company. After the annual accounting process of subtracting expenses, a flat tax rate by 25 % is applied.
- IVA (the equivalent of VAT): This is also a flat tax at 21 %-10 %-4 %. In this case, the company acts as an intermediary or «collector» of this tax, by selling a good or offering a service. The company should add this VAT to the invoice paid by the client and return it to the Spain Tax Office on a quarterly basis.
When Are Taxes Paid in Spain?
The tax year in Spain coincides with the calendar year, from 1st January to 31th December. It is during this period that everything related to taxes should be optimised and controlled.
However, tax returns may vary depending on the type of activity:
- In the case of an employee, their taxes are normally discounted by the company for which they work on a monthly basis. Every year, in the months of May and June, the worker is obliged to file their income tax return. This tax return should include income obtained in the immediately preceding fiscal year and the total taxes contributed are reported. A tax advisor in Spain can advise you on presenting that documentation, as well as on the tax benefits to which you are entitled as a foreigner in our country.
- With regards to freelancers, they should also present this annual tax return. However, these professionals are also required to submit quarterly returns on their income for VAT purposes and other incomes. It is also highly recommended to have a tax advisor in Spain for this type of quarterly tax returns.
- In the case of companies, accounting is the most complicated example. There are situations or types of taxes that have recurrence periods of all types: monthly, quarterly and annually. The correct tax advice for companies established in Spain is essential in order to avoid tax defaults that may lead to penalties.
What Happens if the Tax Administration Claim Non-Payment of Taxes?
The Spanish administration usually communicates tax defaults through very technical communications and generally with an unfriendly tone. No need to worry, our expert chartered tax advisor in Spain will study the case in order to defend your interests.
The tax advisor’s procedure in the case of non-payment:
- The claim complies with Spanish and international law.
- The amount claimed is correct and appropriate to the infringement.
- There is a possibility of cancelling or delaying the payment.
In each case, you will receive the most appropriate tax advice to ensure that your rights are respected and the payments you shall face are minimised.
Contact an English-Speaking Tax Advisor near Me
Whether you are a self-employed professional, an employee or if you have a company and need tax assistance in Spain, contact our accounting and tax law department.
The best way to obtain financial peace of mind and legal protection with a tax advisor in Spain near yo