Resident Taxes in Spain.Spanish government and local taxes - are you up-to-date?I am resident in Spain. What should I be paying?If you are resident in Spain you have to pay two types of taxes each year:•Local Taxes (Council Tax, IBI)These taxes are paid directly to your Town Hall or via the SUMA offices.•Government Taxes (Income Tax)These taxes are paid to the Agencia Tributaria (Tax Authority).How do I know if I am a tax-resident or not?When you live in Spain for more than 183 days in one calendar year you become legally liable to be charged Spanish Income Tax as a Resident. The 183 days do not have to be consecutive.My income is not paid into a Spanish Bank account so do I have to declare it?As a resident, with or without a residency certificate, Income Tax will be calculated on your worldwide income, including pensions from your home country (with the exception of some civil service pensions) even if your income is not paid into a Spanish bank account.There are tax allowances and deductions for residents that vary according to the individual’s personal situation.Four good reasons why not to ignore Resident Income Tax1.The Spanish Government needs to claw in more income via taxes.2.They are closing in on non-resident property owners who are not presenting the MANDATORY annual tax return and residents who should pay tax in Spain on their worldwide income and do not.3.The Tax Authorities have linked up with the Land Registry system and now knows who owns every property.4.Electric companies are now required to supply data to help identify which homes are continuously occupied by residents or tenants.The consequences of non-payment•Late declaration and payment will incur a fine.•Ignorance of the law or the system is not accepted as a reason for late or non-payment.•Property and bank accounts can now be embargoed until back taxes and fines are settled in full.•Worried? Only if you do nothing and mistakenly believe the myth that you are still somehow “below the radar” or that all your tax affairs are “taken care of in my country”.The SolutionWhat you should declare and how to declare it can be confusing.Let us guide you through the Spanish Tax Law to determine if you should pay tax in Spain, in your own country (ex-government employees) or maybe not at all.The recession has made the Spanish tax authorities extremely vigilant. Let us help you to remove the stress of worrying about your tax situation:
Find out about the company that know how important personal attention is.
Iberbrit | Legal, the team.
Meet the team who look after over 1000 satisfied customers
Testimonials Clients“We are delighted to hear that the apartment has been sold and would like to thank you and Miguel for your efficiency and assistance”Mark Hemmings“It was a pleasure to meet you and I cannot thank you enough for all your help. You are so efficient and have managed everything perfectly from beginning to end which made the whole process completely stress free for me”Wendy Church“We still feel totally comfortable with your company assisting us in our Spanish endeavours”Gail and Steve Young"It's nice to know that you're always there. Your one of the few companies I deal with that always answers e-mails promptly and informatively and show by actions you care about your customers. That's rare these days and it's refreshing to deal with you because of it."David Murphy“I would have to say that your assistance has been invaluable to us throughout all the processes we have gone through in buying our place in Spain and selling it.”Jasmine Sneddon“I am deeply grateful for all your help and guidance - I would have got nowhere without it.”Dennis Kelly
Iberbrit | LegalAv. Gran Vía - Monterrey building, Bajo comercialPC 30380 - La Manga del Mar Menor-CartagenaMurcia (Spain)Tel: +34 968 337 392 Fax: +34 968 563 224email: web@iberbrit.comwww.iberbrit.com