Taxes in Spain (IRPF AND WEALTH)

23 / Apr

Taxes in Spain are a bit complicated. If you have recently settled in Spain you will already know this. There is a lot of information about whether or not you are required to submit tax declarations in Spain, but which taxes am I required to submit? What are the conditions for having to pay tax?

The first thing you probably already know is that a person is considered a Spanish taxpayer if he or she has lived in the country for more than 183 days a year. If this is the case, he or she is somehow taxed in Spain on all his or her worldwide income.

The two taxes that many people emigrating to Spain face are income tax (IRPF), Form 100, and wealth tax (Impuesto sobre el Patrimonio), Form 714.


It is the most common tax and the one that most citizens have to submit. There is not just one standard, as there are different types of income and depending on what income you have, there will be some different minimum standards, as well as other variables.

Minimum norms for the obligation to file tax returns

  • Income from work only:

Whether you have a salary or pension, your minimum norm is €22,000 per year, as long as you have one employer.

  • Minimum norm of €14,000 in the following cases:
  1. If you have two or more employers, i.e. if you work or have worked for more than one company;
  2. If your pension is from outside Spain and there are no deductions;
  3. If you receive a partner’s pension.
  • Only income from return on capital (dividends, interest among others):

Minimum norm of €1,600, as long as there are deductions or deposits on account.

  • Only income by allocation of income from property you own that is not your usual residence, whether rented or not.

Minimum norm of €1,000.

It is important to keep in mind that these minimum norms apply if there is no other type of income.

Also consider the following when determining the obligation to file a tax return:

– Taxpayers receiving any other type of income or exceeding the declared limits are required to submit returns;

– Exempt income (e.g. government pensions from the country of origin) is not taken into account.


This tax, which has the same deadlines as income tax, is levied on individuals’ net wealth, as the name suggests, and relates to the assets one owns on 31 December. If a taxpayer dies a day before 31 December, he/she is not required to declare this tax; this is not the case with income tax.

Two concepts come into play here:

  1. Personal obligation (obligación personal). Individuals who are resident in Spain. In this case, all assets and rights are declared, regardless of where the assets are located.
  2. Limited obligation (obligación real). Individuals who are not resident in Spain, but have assets in Spain. In this case, only assets located in Spain are declared.

Tax declaration obligation

There is an obligation to submit tax declarations, either by personal or limited obligation if you find yourself in one of these situations:

  • If the tax due, applying tax rules, is required to be paid;
  • If the tax due is not payable but the value of the assets or rights, calculated according to the tax rules, exceeds €2,000,000.

There is a general exemption limit of €700,000. In addition to this limit, it should be taken into account that the main residence is exempt up to a maximum amount of €300,000.

Isabel Riquelme