If you have been living in Spain for 6 months, or have established your family and business in Spain, you are classified as a resident in the country, and you’ll have to pay taxes on your worldwide income, according to a calculation based on a progressive scale; on the other hand if you are deemed as a non-resident in Spain, you’ll only be liable to pay tax on Spanish income, based on a flat rate.
As Spain consists of 17 autonomous regions, each community can decide on its own its tax rate; hence the income tax, property tax, inheritance and social security tax are not uniform across the country; consider that your total tax will be a calculation of the state’s general tax rates, plus the regional tax rates.
If you are deemed as a Spanish resident, and have not been resident in the country for the past 10 years, you can apply for a special Spanish tax for foreigners working under assignment, also known as Beckham’s Law: under this regime you’ll only be liable to pay 24% of tax on your income, up to €600,000.
The tax year in Spain spans from January 1st up December 31st.
The Certificado de Retenciones, is the annual statement which you obtain from your employer at the end of the tax year or during the year when you leave your job. It shows the total amount of money earned and the amount paid by the employer to the tax office as an advance tax, as well as social and health insurance. Make sure you receive your Certificado de Retenciones form from your employer when leaving the job. Also do not forget to check if there is a stamp and your employer's signature on your document.
As we mentioned above, Spanish income taxes are divided between state and region: while the state has simplified income tax bands, not all of the regions did; hence your IRPF (Impuesto sobre la Renta de las Personas Fìsicas) could differ across the country.
If you fail to obtain the Certificado, or don’t understand how the IRPF works, you can contact Dendax, our team will manage to retrieve it for you and provide you all the informations you need.
How many years back can I apply for a tax refund?
If you are considering applying for a tax refund, keep in mind that according to the Spanish authorities you can ask for a tax refund up to 4 years back.
How long does it take to get my tax refund?
From the very moment your documents are received by the Spanish tax authorities, It takes 6 months on average. Please notice that the actual time may differ on some cases.
What is the service fee?
The price is 22% from the refunded amount. There is a minimum fee of 99 EUR.. All fees exclude VAT, bank charges or bank transfers