Tax in Spain
Information on tax in Spain, the rules that will apply to you should you be planning to move to Spain and tax issues that you need to be aware of when moving to Spain.
Spain’s fiscal/tax year is the natural calendar year unlike the UK. Income taxes in Spain should be paid between May 1 and June 30 for the previous year’s income. With a DNI or NIE, you can apply for a Número de Identidad Fiscal , also known as NIF so that you can pay your taxes in Spain. If you are tax resident in Spain then you will need to pay income tax. If you reside in Spain for over 183 days each year then this will apply to you. In many cases you need only file a tax return in Spain if your income was over 22,000 euros, or if you received a rental income of over 1,000 euros. Also if you have a savings income or capital gains of more than 1,000 euros. Personal allowances for Spanish income tax purposes are €5,151, which increases to €6,069 for persons over age 65 and €6,273 for persons over age 75.
If you are going to become a resident in Spain you must complete form FD9 to apply for UK income tax exemption. By completing this form you are consenting to the Spanish Revenue, certifying to HMRC that you are resident in Spain for the purposes of Spanish tax.