How non-resident taxation works in Spain

Being part of an international network such as Kreston Global allows us to offer audit, accounting, consulting and tax services locally and globally. This gives us the possibility to help our domestic clients to grow abroad, just as our foreign clients can open up markets in our country.

But in order to start a business venture in other markets, it is very important to know how they work, starting with the current tax legislation.

For this reason, at Kreston Iberaudit we wanted to help our foreign clients with the publication of a tax
guide for non-residents in order to give them a better understanding of the Spanish tax system.

Non-Resident Tax Guide PDF

What is the non-resident tax guide

Kreston Iberaudit’s non-resident tax guide is a document on practical taxation aimed at individuals and legal entities that obtain income in Spain when it is not obtained through a permanent establishment.

We want it to be a practical tool that, in a schematic way, helps to understand from a technical point of view how Spanish tax legislation works for non-residents in our country.

We have given it a general perspective because international taxation is also affected by the Double Taxation Agreements signed between different countries and it would have been impossible to describe the specific tax system of each country.

However, we have tried to provide a global approach on how the Spanish tax system as a whole works, addressing the consequences not only on Non-Resident Income Tax, but also Inheritance and Gift Tax, Wealth Tax and other taxes of a municipal nature.

It is a very useful guidance document for our clients, a starting point that in no way intends to or can replace the ad hoc and personalised tax advice that we offer our clients, through the professionals, experts in international taxation that make up the firm Kreston Iberaudit.

What this guide contains

This tax guide for non-residents that we have prepared at Kreston Iberaudit covers issues of interest to our clients, with updated information on this subject from different points of view.

Thus, in the different chapters you will be able to find out about:

• The tax requirements to be considered a resident in Spanish territory in accordance with domestic legislation.
• The obtaining of dividends from Spanish companies by non-residents, as well as the taxation of royalties and interest paid by Spanish individuals or entities to non-residents.
• The receipt of employment income, pensions and similar income paid by entities resident in Spain or for work carried out in Spain.
• The special tax regime for impatriates, known as the Beckham Law, which applies to individuals who acquire their tax residence in Spain when they move to Spain for work purposes, when they meet certain requirements.
• The taxation of income obtained from the ownership, rental or sale of real estate located in Spain.
• Obligations such as the need to appoint a tax representative in Spain or to have a NIE or NIF in certain cases.
• The procedures for obtaining the GOLD VISA, i.e. the residence permit for investments made in Spain.
• The rates applicable in agreements with different countries for each source of income.
• The updated list of territories that are considered tax havens and non-cooperative jurisdictions for the Spanish Administration.

At Kreston Iberaudit we believe that this guide is very complete and that it can be very useful for our foreign clients who are or will be taxed as non-residents in Spain, because it will facilitate many procedures and will help them to see their business in our country from a more complete perspective.

In any case, you can always count on us to provide you with the specific advice you need.