The Law in Spain: Why it Pays to Register for Spanish Residency

It’s quite a common perception for expats who move to Spain to believe that, by registering as a resident, they will be exposed to harsher and more stringent tax obligations. In fact, the opposite is true: a resident property owner has various tax advantages over the non-resident, even if some (such as exemption from capital gains tax) no longer apply following changes to the law.

HOW TO APPLY FOR RESIDENCY IN SPAIN

Tax Advantages for Residents. Imputed Income Tax

Imputed Income Tax

As a resident property owner, your inputed income tax does not apply to your official residence.

Tax Advantages for Residents. Capital Gains as Income Tax

Capital Gains as Income Tax

Residents of Spain pay any capital gains tax as part of their income tax, which is calculated on the year just passed. Hence, if you sell your property this year, the capital gains tax will be due the following year as part of your standard Income Tax.

Non-Residents Living in Spain Permanently

If you live in Spain permanently (classed as more than 180 days per year) and you have not registered as a resident, you are violating the terms of a tourist stay, even as an EU citizen – and you are fiscally liable. 

In this instance, you can be fined up to €300. So it pays, in more ways than one, to register as a resident in Spain.

Tax Advantages for Residents. Tax commitments are determined by the duration and permanence of your stay in Spain

Tax commitments are determined by the duration and permanence of your stay in Spain

PLEASE NOTE: Every effort was made to check the accuracy of the information contained within our “Legal Advice” articles at the time of writing, but it may have been superseded over time. VIVA cannot accept responsibility for any errors or omissions, nor for the authenticity of any claims or statements made by third parties. We therefore strongly recommend that readers of these articles make their own thorough checks before entering into any kind of transaction. Prices and figures were correct at the time of publication but may now vary due to circumstances beyond our control. The views and opinions of editorial contributors do not necessarily reflect those of VIVA.

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Victoria Atkins from Customer Service at yourVIVA

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