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Income tax in Spain (IRPF) for residents with foreign income or assets

22 / Jul

One of the most frequently asked questions regarding income tax in Spain (IRPF: Modelo 100) is whether certain income received abroad is also taxed in Spain. We will explain it to you.

In Spain you will be taxed on all worldwide income, regardless of the fact that in the country of ORIGIN of that income is also taxed.

However taxes paid outside of Spain are also taken into account here, thus avoiding double payment and therefore no double taxation!

So in the end you can either have zero tax on that income, or you will have to pay a result, but only for the proportional part of what would have been paid in Spain if it had been fully taxed here. This type of income is usually income from salaries, pensions, dividends, interest and life insurance policies.

Income from rented or non-rented properties abroad must also be declared on the IRPF tax return.

Your income from abroad is the most common information we need. You will also need to provide information on your usual residence, your assets and/or income in Spain, your family situation, your property sales, reinvestments, shares and dividends.

With all this information we can also determine your assets worldwide (Modelo 714 Wealth Tax Spain: for assets with a net value of more than 500.000 Euros or 700.000 Euros depending on the Autonomous Community) and know whether or not you need to declare this as well.

Finally, don’t forget that an annual declaration of assets abroad is also required for residents in Spain with a net worth of over 50.000 Euros via the well-known Modelo 720.

Lucia Guillén Molina