The Spanish tax system – an overview
Spain has a comprehensive tax system that affects both individuals and businesses. Income tax (IRPF) is progressive and varies depending on the autonomous community, generally ranging from 19% to 47%. For expats, there is the possibility to apply for the advantageous "Beckham Law" regime, which implies a flat tax rate of 24% on income up to €600,000 for the first six years.
Corporate tax is generally 25%. Additionally, Spain levies a wealth tax (Impuesto sobre el Patrimonio), though rules and exemptions vary significantly between regions. Non-residents are subject to a specific income tax (IRNR). Capital gains tax and inheritance & gift tax are also dependent on regional legislation, while the standard VAT (IVA) rate is 21%.
Our services for Spain
We provide comprehensive tax advisory for those planning to relocate to Spain or who already have interests in the country. Our team possesses in-depth knowledge of both Swedish and Spanish tax law.
Tax optimisation
We assist individuals and businesses in structuring their assets and income to minimize their tax burden. This includes evaluating the possibilities of applying the "Beckham Law" and establishing optimal structures for your business when relocating to Spain.
Compliance
We ensure you meet all your tax obligations in Spain. This involves assistance with Spanish tax filings such as Modelo 100 (the general income tax return) and Modelo 720 (declaration of overseas assets), as well as advising on the filing obligations for Swedish nationals residing in Spain.
Relocation
Relocating from Sweden to Spain involves complex tax issues. We support you through the entire process of breaking your Swedish tax residency and establishing a new tax residency in Spain in a compliant and beneficial manner.
Tax advice
We offer ongoing, ad-hoc advice regarding the double taxation treaty between Sweden and Spain, pension taxation, and strategies for avoiding the double taxation of income and capital gains.
Tax returns
For individuals residing in Spain with income sources from Sweden (or vice versa), we assist in preparing correct tax returns in both countries, ensuring the appropriate deductions and tax reliefs are applied.
Why Spain?
Spain is a popular choice for many Swedes due to its high quality of life, pleasant climate, and EU membership. Spanish tax legislation, notably the "Beckham Law", presents interesting opportunities for expatriates. Furthermore, the double tax treaty between Sweden and Spain ensures fair taxation, and the country boasts a growing expat community alongside excellent infrastructure.