Double taxation?

Do I need to pay tax twice?

You may have heard about double taxation and double taxation agreements? You might be worried that you need to pay the same tax in twice?

What is a double taxation agreement?

A double taxation agreement is an agreement between two countries with the aim of figuring out who will pay tax in which country. The purpose is to avoid that a person needs to pay tax twice in different countries for the same income.

Many countries have agreed a double taxation agreement with Spain which explains where you need to pay your tax.

In some cases you might need to pay a tax twice and then reclaim the tax amount from of the countries according to the double taxation agreement. 

I let my apartment in Spain and I am worried there won’t be any income left after all the taxes!

If you let your Spanish property, you will likely need to pay taxes on the income both in Spain and your home country if you are non-resident. The Spanish tax is quite similar to other European countries in the way taxes work for rental income. After deduccions you will usually pay between 10-15 % taxes in Spain which might be tax free or deductable from your taxation in your home country.

The Spanish tax needs to be declared four times a year, quarterly, while in your home country you need to declare once a year together with your normal yearly tax declaration. If you are resident in Spain you declare yearly.

If you need help, please do contact us and we will help you with any questions.

I have retired in Spain, where do I have to pay tax?

If you have chosen to retire in Spain fulltime, you will need to pay taxes in Spain. Depending from where you have moved you might also need to pay tax in part in your country of origin.

This will be determined in the double taxation agreement between Spain and your country of origin. Please do contact us and we will advise you how to fullfill your tax obligations.

I work in Spain, where do I pay taxes?

If you work in Spain, you will normally pay taxes in Spain.

Your country of origin might also tax you if you still have a strong connection to your home country, for example by owning property or having family members living there. This depends on the double taxation agreement between Spain and your country of origin.

I study in Spain, where do I pay taxes?

If you study in Spain, you will most likely only pay tax in your country of origin For degree studies or short term studies you will usually not be considered a Spanish tax resident even if you spend more than half the year in Spain. If you also work during your stay in Spain you might need to pay income tax for your spanish income.

What taxes do you need help with?