The ‘declaracion de la renta’ is the personal income tax return in Spain.  It is completed by filing the Modelo 100 tax declaration form.

Who has to File a Declaracion de la Renta Personal income Tax Return in Spain

All Spanish residents are obliged to declare the income that they recieve.  This includes income arising outside of Spain.  There are some allowances and exceptions.  For example:

• You are employed or recieving a pension from one payer below €22,000 per year
• You have earned income from more than one source e.g. pensions, less than €14,000 per year

Savings interest of less than €1,600 does not have to be declared and the general personal allowance is €5,550 for under 65’s and €8,700 for over 65’s receiving a pension.

Read more about tax in Spain and allowances.

When does the Declaracion de la Renta Personal income Tax Return have to be filed?

The tax year in Spain runs with the calendar year, i.e. from 1st January to 31st December.  The personal income tax declaration is filed from early April to the 30th of June the following year.

Spain’s tax office provides information about the campaign here: https://sede.agenciatributaria.gob.es/Sede/en_gb/Renta.html

Any tax that is due has to be paid by the 30th of June and it is possible to split the payment into two instalments interest free, 60% paid immediatley and 40% paid in November. Monthly instalments by direct debit over longer periods are also possible however this does incur a small amount of interest

Do I need to do a Joint Declaracion de la Renta Personal Income Tax Return

In a household for example, where a married couple has one one with income and the other without, part of the ‘unused’ tax allowance can be made use of by completing a joint tax return.

If both have income, thhe tax office system has a similutor which allows you to check whether the tax outcome will be better, joint or single returns.  The accountant or gestoria submitting the return should always check which way will result in the lowest tax bill.

Documents & info needed to complete a Personal Income Tax Return

For and accountant or gestor submit a return on your behalf you will need to be registered with the tax office as a resident and they need the following:

• Your digital certificate
• TIE front and back / both sides of your residency certificate
• Cadastral reference of your home address.
• Your Spanish bank IBAN

The cadastral reference can be found on the IBI bill. If you are renting, you also need to provide the property owner / landlord’s DNI or NIE.  This information should be found in your rental contract, if not you will need to ask your landlord or rental agent for this.

If you don’t have a Spanish Bank account, or it is not registered with your NIE number, (e.g. non-resident account, then it will not be possible to set up for your tax to be paid by direct debit.  If you are not yet registered with the Spanish tax office, this will also need to be done.

What has to be included in your Personal Income Tax Return

Your main / regular income – pensions, salary, rent etc
Secondary / other income – interest from savings, dividends, capital gains (property or shares sold with a profit / loss)

As the Spanish tax year runs from January to December, there is a 3 month overlap with the UK tax year.  If your regular income has changed from one UK tax year to the next, the income reported for the Spanish tax year, will be the last 3 months of the previous UK tax year, and then 9 months of the current UK tax year.

Income to be declared is either calculated on a pro-rata basis from the figures on the last 2 P60’s, or using payslips or pension payment advice letters.

If you have rental income to declare, expenses relating to the letting of the property can be taken into account, however must be evidenced by receipts or invoices issued by registered companies or registered tradespeople.

Need help with you personal income tax declaration or not sure if you need to do one. Use our online form to provide the information needed to check, get an assesment or request assistance preparing and submitting your return.

Spanish Tax Return Assessment / Registration

Related reading:

Overseas Assets Declaration and Modelo 720

Making Your First Tax Declarations in Spain

1. What is Modelo 720?

Modelo 720 is a mandatory tax form in Spain for tax residents to declare assets held outside Spain if they are above a certain value.

2. Who is required to file Modelo 720?

Any individual or entity that is a tax resident in Spain and holds assets abroad exceeding the reporting limits must file this declaration.  When you move to Spain, you complete it the year after you become tax resident.

3. What are the declaration thresholds?

The Modelo 720 must be filed if the total value of assest in three categories exceeds €50,000. If previously declared, updates are required only if the value has increased or decreased by more than €20,000.

After moving to Spain your first tax declarations are due the year after you become tax resident in Spain.  The tax year in Spain runs with the calendar year, 1st January to 31st December and the basic rule is that you become tax resident when you’ve spent 183 days in the year in Spain.

Your tax obligations arise for the fiscal year in which you become resident in Spain, not from the date you got your residency.

Here we provide a useful summary and information of the first tax declarations for anyone who doing their Tax in Spain for the first time.

Understanding and planning fiscal residency and Spanish tax is a very important when making the transition to become a resident in Spain.  Tax in Spain is very different to the UK, and has become even more complicated since the UK left the EU as the way certain types of income are treated changed.

Here we provide an overview of the tax related requirements and key points that most need to consider when becoming a Spanish resident.

Getting your tax right when moving from the UK to Spain requires an understanding of all the things that need to be done and when to do them.  Here we provide information about all the things you may need to do or consider to make sure you get your tax right both on the UK side as a leaver and on the Spanish side becoming tax resident in Spain.

Things you may need to do to get Your Tax Right Before Moving from the UK to Spain

Check Capital Gains Tax (CGT)
Selling assets before leaving could have tax implications. UK property remains subject to CGT even if you are non-resident. Conversely, assets such as your main home which are exempt from CGT in the UK, could get caught in Spanish CGT if sold around the time or after your move to Spain.

Personal Pensions, ISA’s and Investments
Growth in personal pensions such as SIPP’s is subject to CGT annually and ISA’s lose the tax status that they offer to you as a UK resident.  Anyone who has these type of financial assests should get professional advice on getting their financial affairs optimised for Spanish tax before becoming tax resident.

Tax Planning Advice
Seek expert help to optimise tax efficiency, especially for pensions, investments, and property.

Understand Ongoing UK Tax Obligations
Although Spanish residents are liable for tax in Spain on all income including that arising in the UK, there are some exceptions and types of income that continue to be taxed in the UK.

For example, pensions from Government employment, such as police, local authority, teachers NHS etc, under the double tax agreement are only taxed in the UK.  Income from letting property must have any tax due in the UK settled first, but may also be taxed in Spain, if the amount of tax due in Spain is higher than that already paid in the UK.  In this case you pay the difference in Spain.

Aside from the above and income from employment while physically present in the UK, all other personal income is no longer liable for UK tax once you are tax resident in Spain.

If you receive rental income, you will need to register as a Non-Resident Landlord and continue submitting a tax return in the UK as a non-resident.

Notify HMRC that you have left the UK
Once you have left the UK, you should notify HMRC by completing form P85. You can submit form P85 to notify that you left the UK.  If you have a Government Gateway ID you can do this online.

https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

If you are bringing personal possessions such as household goods or a car to Spain as part of you move, you can apply for a customs duty and VAT exemption.  The customs tax office will usually accept proof of notifying HMRC of leaving the UK, amongst other docs, to grant a waiver.

National Insurance (NI) Contributions
Consider Voluntary NI Contributions: If you plan to claim a UK State Pension in the future, you may want to continue making Class 2 or Class 3 contributions if you don’t alreayd have the maximum years of contributions.

Getting Your Tax Right After Moving from the UK to Spain

Get a Digital Certificate

A digital certificate is an electronic document that verifies a person’s identity online. It functions like a digital ID card and is used to authenticate users, encrypt data, and digitally sign documents, ensuring secure online interactions with public administrations, banks, and businesses.  A bit like the UK’s Government Gateway ID.

Having a digital certificate in Spain provides several benefits, including:

>Secure Online Identification, – Allows individuals to authenticate themselves securely in online transactions with public and private entities.
>Electronic Signatures – Enables legally valid digital signatures on official documents, contracts, and applications.
>Access to Public Services – Facilitates online interactions with Spanish government portals (e.g., tax agency, social security, and municipal services) without needing in-person visits.
>Convenience & Time-Saving – Eliminates the need for physical paperwork, reducing bureaucracy and allowing 24/7 access to essential services.
>Tax & Administrative Procedures – Enables filing tax returns, obtaining official certificates, and managing business registrations electronically.

Spanish Tax Office Registration
If you are not already registered with the tax office in Spain as then you will need to do this.  If you own a property, you should already be registered, however as a non-resident.  In either case the registration or updating of status is done by completing form ‘modelo 030’.

Overseas Assets Declaration – Modelo 720
The Modelo 720 is a mandatory tax form in Spain for tax residents to declare assets held outside Spain if they of value above €50k.  If applicable, it has to be completed by 31st March the year after your first tax year in Spain.

Final Non-Residents Tax Return- Modelo 210
New Spanish residentrs who owned property in Spain prior to moving, may need to file a final modelo 210 non-residents tax return.

Personal Income Tax Return – Modelo 100
Your first personal income tax return is due the year after you complete your first tax year in Spain.  E.g. if you moved in 2024 and spent 183 days in Spain in that year, your first income tax return is due by June 30th 2025.  You will need to complete a tax return in Spain if you want to de-register from paying tax in the UK and or make a claim for a refund of tax from HMRC under the double tax  agreement.

Double Tax Refund Claim
You will continue to be registered with HMRC as a UK tax payer until you have provided proof that you are now a Spanish tax payer.  The proof required is a certificate of fiscal residence issued by the Spanish tax office.  This certificate usually cannot be obtained until you have completed your first tax return in Spain,

In many cases there will be a period where you pay tax in both the UK and Spain.  Fortunately there is a Double Taxation Agreement (DTA) between the UK and Spain, so if you do pay tax twice you will be able to claim back the tax paid in the UK that you shouldn’t have paid.

The Double Tax Claim Form can be downloaded here.

When you submit or send the form, you’ll need to include the Certificate of Tax Residence in Spain and a copy of your residency certificate / TIE (front and back).

If you need to make a claim for a refund of tax paid in the UK, then you can complete a double tax claim form and send it to HMRC.

https://www.gov.uk/government/publications/double-taxation-united-kingdomspain-si-1976-number-1919-form-spain-individual

The following is a link to the section of the HMRC website that provides information about tax when you’ve left the UK.

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

In 2024 Spain implemented significant reforms to its immigration laws to enhance migrant integration and address labour market needs.

Key Spain rule and law changes that are relevant to people that are not citizens of EU countries who are looking to move to Spain include:

Property Investor ‘Golden Visa Residency

In November 2024, the residency scheme for property investors, or ‘Golden Visa’ as it’s commonly known, was deleted from the Law, (Ley 14/2013, de 27 de septiembre, de apoyo a los emprendedores y su internacionalización), that brought it into being.  As of 3rd April 2025, the ‘Golden Visa’ is no longer available to new applicants.  Existing holders of the visa / residency and their family members can carry on renewing their residency, for as long as they continue to qualify under the rules as they were.  New applications by family members of existing holders are also possible.

Non-Lucrative Visa

An update to another law published in january 2025, (Real Decreto 1155/2024, de 19 de noviembre, por el que se aprueba el Reglamento de la Ley Orgánica 4/2000, de 11 de enero, sobre derechos y libertades de los extranjeros en España y su integración social), adds a condition of renewal that the applicant must ‘have actually and effectively resided in Spain for more than one hundred and eighty-three days during the calendar year’.

This counters the September 2023 Spanish Supreme Court ruling which declared null, the article of law that allowed temporary residence permits to be terminated when there had been absences from Spain for more than 6 months in the year.

This means that becoming tax resident in Spain is now a requirement for anyone who wants to renew their non-lucrative residency on an ongoing basis.  The same article also notes that at renewal, ‘failure of the foreign person to comply with their tax and social security obligations during the validity of their authorization, will also be checked and assessed.

Other changes in the same law also defined specific details that documents from foreign institutions such as bank statements must include.  These are listed as:

a) The business name or full name of the bank or credit institution, as well as its address.
b) The complete identification of the accounts.
c) The date of opening or cancellation or, where applicable, the dates of granting and revoking the authorization.
d) The account balances as of December 31 of the year prior to the year in which the application is submitted and the average balance for the last year.

Although not mention in this law, we have experienced an increasing number of requests from immigration for foreign bank statements to be certified by a notary public and legalised and translated.

Other Visas & Residency

Student Visa

For those who come to Spain to study higher education for more than one year they will now not hhave to renew their residency permission every year.  The initial permit will be vaild for the full duration of the period of study.

Options for working up to 30 hours per week, while studying and or getting a work permit after finishing studies are also improved.

Undocumented Immigrants

Changes in the Law lighten the requirements for individuals who are in an ‘irregular residency situation’ who wish to get themselves straight.  Theses changes include shortening the period of ‘irregular reidence’ from three to two years, removing the requirement of proving integration where the individual has immediate family that are permanently resident in Spain, and second chance for those who have not been able to renew the residency that they had.

According to new agency Reuters, Spain plans to regularize approximately 300,000 undocumented migrants annually over the next three years to address labor shortages and sustain its welfare system amidst an aging population.

All of these changes, effective May 20, 2025, aim to streamline the processing of residence and work permits, aligning with national regulations and European directives. They reflect Spain’s commitment to improving migrant integration, addressing demographic challenges, and ensuring that immigration policies align with labour market needs.

Property Tax of 100% for Non-EU Buyers

Despite what you may have seen or heard, a 100% property tax for non-EU buyers of property has not come into affect and is unlikely ever to.  It was simply an idea put forward by the Prime Minister as a measure to help address some significant imbalances in Spains property market.

Foreign buyers make up around 15% of ther overal market, and this percentage includes nationals of EU countries (approximately half) and Non-EU nationals who are resident in Spain.  The actual percentage of non-resident non-EU national buyers is really quite small, so bringing in such a tax woudl have little  effect.

In any case even if this tax were to come in, it should not scupper anyones plans for buying a property and moving to Spain.  All they’d have to do is move first and then buy which is what a lot of people do anyway, i.e. rent for 6 to 12 months to explore, get a feel living in Spain and find that perfect home in Spain before committing to their purchase.

Understanding tax in Spain is essential, not just if you live here, but also if you own a property in Spain.

The Spanish tax year runs from 1st of January to 31st December.  Residents have to complete their income tax return, declaracion de la renta, by 30th of June the following year, and non-residents have until 31st December.

Spain has a double taxation treaty with the UK, US and many other countries so if you are a foreign national from one of those countries living in Spain with income from your home country you can avoid getting taxed twice on the same income.

Resident or Non-Resident for Tax in Spain?

You are considered to be tax resident in Spain if any of the following apply:

When buying holiday money or sending money abroad, many banks and brokers include hidden fees and or a mark-up in the exchange rate.  Not surprising, a recent study into international money transfers and payments found that 75% of consumers do not know about, or do not understand currency exchange rate mark-ups.

In recent years specialised currency exchange companies have broken the monopoly on the supply of currency exchange services.  Banks and high street exchanges are no longer the go to choice for changing currency.

These currency exchange companies deliver much more competitive exchange rates to consumers, more personalised service, and faster transfer times than banks offer. It’s no surprise than savvy overseas property buyers and expats choose these companies to get a better deal.

A high street bank may seem like the easy or convenient option, and may be your choice through habit, however using a specialist foreign currency exchange provider is just as easy and more importantly works out much cheaper!

Andalucía has become one the top 3 regions in Spain with the least taxes.  On the 21st September 2021, the regional president, Juanma Moreno, announced the scrapping of Wealth Tax in Andalucía.

The tax has accounted for just 0.6% of income for the regional government (€95m annually), and Moreno believes the change will have a very positive impact on increasing revenue by attracting investment.

A large number of the highest wealth tax payers left Andalucía in 2020, resulting in a loss of income of estimated at around €18m (€3.5 million euros in wealth tax and €14 million in personal income tax).

The president is hoping that removing Wealth Tax will encourage people with high income who spend long periods in Andalucía, but are not tax resident, to make it the region their permanent home and pay tax there.

Moreno’s estimate is that the tax reduction will attract 7,000 new residents, the result being that the 0.6% of income lost will be far exceeded, through income tax and other indirect taxes collected.

As wealth tax hasn’t been abolished, the annual tax return still has to be done according if, according to the law, ‘ . . . the value of their assets or rights, determined in accordance with the tax regulations, is greater than €2,000,000 euros.’  However 100% tax relief will be being granted to zero the liability.

New ‘Large Fortune’ Tax Proposed

The good news of Andalucía’s Wealth Tax reform, was shortly muted by news that the Spanish government plans to impose a temporary national ‘tax on large fortunes’.  The tax is yet to be approved by parliament, but is is expected to be implemented for 2023 and 2024 and will affect individuals with net wealth above €3 million.

Since wealth tax is collected by the regional Government, it was confirmed that any wealth tax paid would be offset against any ‘large fortune tax’ bill.  As Andalucía now give 100% wealth tax relief, residents in Andalucia won’t have to pay wealth tax, however if their net assets equal €3 million or more, they would have to pay the ‘large fortune tax’.

The proposed rates are as follows:

• 0% up to €3 million of net wealth
• 1.7% between €3 million and €5 million of net wealth
• 2.1% between €5 million and € million of net wealth
• 3.5% for a net wealth of over €10 million

According to the information provided by the Spanish Ministry of Finance, the tax on ‘large fortunes’ tax will affect 23,000 taxpayers and raise €1.5 billion in revenue, which will be used to finance policies to support the most vulnerable who are affected by the recent steep rises in cost of living.

Aside from Local (IBI), Capital Gains, Wealth and Inheritance Taxes, non residents must pay tax on any income they receive that arises in Spain.  Income tax for non-residents is charged at a fixed rate of 19% if you are a resident in an EU or EEA country  For non-residents from the rest of the world, the rate is 24%.  This includes a non residents property tax.

Non Residents Property Tax on No Income

If you own a property in Spain and earn rental income from it, then this has to be declared.  What some non-resident owners of property in Spain are not aware of, is that they are also required to pay tax, regardless of whether the property is let out or not!

This tax is often referred to as an imputed income tax. Spanish tax legislation for some reason assumes that a non-resident owner derives some sort of benefit from owning property and provides a system to tax it.