A Guide To Taxes In Spain
Official information on who has to declare, in the AEAT website.
Wealth Tax
The Wealth Tax levies the net assets of individuals, meaning the total of economic goods and rights they own, after deducting any charges and encumbrances that reduce their value, as well as any debts and personal obligations for which the owner is liable. Usual residence is not included among the goods.
- Case 1: wealth more than the exempt minimum established, set at 700,000 euros, and the declaration result is to pay
- Case 2: wealth more than 2.00.000 euros and the declaration result is whether to pay or not
Non-Residents Wealth Tax
Only charges and encumbrances affecting assets and rights which are located in Spanish territory or which may be exercised or have to be fulfilled in Spain, as well as debts for capital invested in the aforementioned assets, shall be deductible.
There is a exempt minimum of 700,000 euros , applicable to non-residents subject to a real obligation to contribute.
The Tax will accrue on December 31 of each year and will affect the assets of which is the owner on said date.
Taxes Related To Housing
There are two main expenses, one related to purchising a house, and another a annual tax.
Annual Council Tax on Properties
Impuesto sobre Bienes Inmuebles aka Contribución: The amount vary from city to city. For a 90 square metres apartment it can range from 150 EUR in mid-size cities to 500 EUR in big cities.
Taxes when purchising a house and mortgage
You can see these taxes in the dedicated page.
Taxes Related To Cars
Buying a car
In the same way than when buying a house, you may have to pay one out these two taxes:
- VAT: in the case that the car is brand new
- ITP: in the case the car is second hand
Annual car tax
You have to pay “Impuesto de circulación” to the City Council, which may vary from city to city, to an average of 60 EUR for a mid-size car.
VAT – IVA Sales Related Tax
The standard rate of VAT is 21%.
The current reduced rates are 10%, 5%,4% and 0%.
You can find out which goods and services these rates apply
Taxes Related To Customs
Customs regulations are the same acrros all European Union countries: is fully harmonized between all European countries so the same rules that apply for example in Spain, also apply in France thanks to the European Union Customs Code.
Customs duty is typically calculated as a percentage of the customs value of the goods. The percentage or rate varies depending on the type of goods. You can check the tariff applicable in the TARIC database. The customs value is based on the price paid for the goods.
Customs duty is not due for goods, provided directly to the buyer when their value does not exceed €150, excluding transport and insurance costs. This relief does not apply to perfumes and toilet waters, tobacco or tobacco products and alcoholic products which are subject to special duty-free limits on the quantity provided.
Inheritance and Gift Tax
The Inheritance and Gift Tax is a levy that taxes the transfer of goods and/or rights between individuals. In the case of inheritances, the tax applies to capital gains obtained by individuals gratuitously and mortis causa. In the case of gifts, it applies to inter vivos capital gains obtained by individuals gratuitously.
The ISD is delegated to the Autonomous Communities, which have authority over its collection and verification. Additionally, they can apply their own rules regarding aspects such as tax rates or reductions in the taxable base.
The Inheritance Tax is a progressive tax, meaning there is no fixed tax rate; the more you inherit, the more you pay. The general tax rate ranges from 7.65% to 34%, with the aforementioned deductions applied by each Autonomous Community.
Non-Residents
You must present a different Self-Assessment Form (650, 651 or 655) depending on whether it is a succession , a donation or the extinction of a usufruct
- 650 Form: Acquisition of property and rights by inheritance, bequest or any other succession, and receipt of amounts by beneficiaries of life insurance contracts, when the contracting party is a person other than the beneficiary.
Who is obliged to file it
Heirs, legatees or beneficiaries of a life insurance policy (individuals) who do not have their principal residence in Spain, or residents who acquire assets, or are beneficiaries of a life insurance policy, of a deceased person, who did not have their tax residence in Spain.
- 651 Form: Acquisition of goods and rights by donation or any other legal transaction free of charge, inter vivos
Who is obliged to file it
Natural persons who do not have their residence in Spanish territory for the assets and rights that were located, had to be fulfilled or could be exercised in Spanish territory that they acquire by donation or any other legal transaction free of charge and inter vivos.
Resident natural persons who acquire real estate located abroad by donation or any other legal transaction free of charge and inter vivos are also eligible.
- 655 Form: Consolidation of ownership in the person of the bare owner as a result of the extinction of a usufruct constituted through a lucrative transfer (succession or donation)
Who is obliged to file it
The owners who consolidate the domain as a consequence of the extinction of the usufruct.
The National Tax Management Office is responsible for managing the tax where this has not been transferred to any autonomous community. This applies in the following cases:
- Where the deceased was not resident in Spain at the date of death.
- Where the person liable to the tax (heir, legatee, beneficiary of life insurance) was not habitually resident in Spain at the date of death.
- Where the person liable to the tax (the recipient) was not habitually resident in Spain at the date on which they received the gift. Additionally, where the recipient is resident but the assets acquired by way of gift consist of immovable property located abroad.
Coportation Tax
The general tax rate for taxpayers of this tax will be 25 percent.
However, for the first tax period in which the taxable amount is positive and in the next, newly created entities that carry out economic activities will be taxed at the rate of 15 percent, unless they are required to pay tax at a lower rate.
Excise Duties
Products subject to Excise Duties are those subject to taxes on alcohol and alcoholic beverages (beer, wine and fermented beverages, intermediate products and alcohol and derived beverages), to the Tax on Hydrocarbons (petrol, diesel, natural gas, biofuels, etc.) and to the Tax on Tobacco Products (cigarettes, cigars, rolling tobacco, etc.).
Here’s a table with the excise duties for tobacco and alcohol in Spain, including the most common goods:
| Category | Item | Excise Duty |
|---|---|---|
| Tobacco | Cigarettes | €59.1 per 1,000 cigarettes plus 51% of retail price |
| Cigars and Cigarillos | 15.8% of retail price | |
| Rolling Tobacco | €41.5 per kg plus 41.5% of retail price | |
| Other Tobacco Products | €28 per kg plus 28% of retail price | |
| Alcohol | Beer | €0.91 per hectoliter per degree Plato |
| Wine | Exempt | |
| Sparkling Wine | €2.71 per hectoliter | |
| Intermediate Products (e.g., Vermouth) | €38.28 per hectoliter | |
| Spirits (e.g., Whiskey, Vodka) | €959.97 per hectoliter of pure alcohol | |
| Other Fermented Beverages | €8.30 per hectoliter |
Please note that these rates are subject to change, and it’s always advisable to check the latest information from official sources or consult with a tax expert for the most current rates.