Advice on local and state taxes
Income Tax returns
Spain is a wonderful location in which to retire and you want to
be able to enjoy the time here to the maximum.
However, taxes are inevitable and when you spend more than 6 months
of the year in Spain and/or you have the centre of your economic
activity here then the law defines you as tax resident in Spain.
It is important to note that tax residency is not determined by
having a Residence Permit, which is an identity document required
by the Interior Ministry.
The tax year in Spain is January to December, and Income Tax returns
for individuals are required to be presented in May & June for
the previous year ended December.
Income Tax returns are required to include income from all sources,
both from within and outside Spain.
The tax treatment of income depends on the type of income involved,
so salary and pension income, investment income and capital gains
are treated differently for tax purposes.
Patrimonio Tax, often referred to as Wealth Tax, is a special tax
on net assets that may affect individuals depending on their particular