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taxes in Spain

Vsonia

Hi. I'm a US citizen wishing to buy a home in Catalunya, just south of Barcelona. The taxes thing is more than my brain can handle at the moment. Can someone recommend a financial specialist who can clear things up for me?  But a burning question I have in advance of speaking with someone is: if you live in your purchased property (in Spain) only 3-4 months out of the year, are you considered resident and taxed as such, or much less? thanks

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gwynj

Welcome @Vsonia to the expat.com forum, and good luck with your move to Spain!

Don't worry, tax residence is separate from legal residence, and is based on your physical presence. The line is 183 days, so no issues with a few months.

However, there is an annual property tax for your property, paid to the local authority. I believe that non-residents are also subject to the wacky "notional" (what you could rent your property for, if you weren't keeping it for your own use) rental income tax, and a wealth tax on your assets in Spain. I think they're all quite small, so shouldn't be too much of a bother, unless you're buying a fancy beachfront mansion in Sitges.

property tax = Impuesto sobre Bienes Inmuebles (IBI)
wealth tax = Impuesto sobre el Patrimonio
notional rental tax = Impuesto sobre la Renta de los No Residentes (IRNR)

By my calculations, for our little pad in Elche, IBI is about 150 euros... the rental tax is similar... and the catastral value is too low to incur the wealth tax.

Here's a good non-resident tax link:
https://perezlegalgroup.com/non-resident-tax/

marialuisa7677

Vsonia:

You become a tax resident in Spain if:

Natural persons are considered resident in Spanish territory in any of the following cases:

1. If they spend more than 183 days in Spanish territory in the same calendar year.

When determining the amount of time spent in Spanish territory, sporadic absences are counted unless taxpayers can prove that they are resident for tax purposes in another country.

In the case of countries or territories classified as tax havens, the tax authorities may ask for proof that the taxpayer has spent 183 days in the tax haven during that calendar year.

2.If the main hub or base for their activities or economic interests is located in Spain, directly or indirectly.

3.If the spouse (where not legally separated) and minor children who are dependent on the natural person have their habitual residence in Spain. Evidence to the contrary may be submitted in this third case.

Natural persons of Spanish nationality who provide proof of their new residence for tax purposes in a country or territory considered a tax haven retain their status as IRPF taxpayers. This rule shall apply in the tax year in which the change of residence occurs and for the four subsequent tax years.

On the contrary, a natural person will be considered to be non-resident in Spain if they do not meet any of the above requirements.

But, there are other property related taxes which are paid noyt because of your tax residenct but because of the location of the property.

- Local Council Taxes ( IBI, Garbage...)
- Non Resident Annual Notional Tax

You can find good advisors at www.costaluzlawyers.es

Vsonia

thank you so much!