Non-Resident Income Tax: What is it and why do I have to pay it?

As you may remember, I have referred to this tax in previous posts without fully explaining what it entails exactly. Here is a breakdown of the key facts of Spanish Non-Resident Tax.

The determining factor regarding what kind of Income Tax a natural o legal person pays in Spain is residence. Residents pay regular Income Tax (IRPF) or Corporation Tax (IS), and non-residents, both natural and legal persons, pay must pay Non-resident Income Tax (IRNR).

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Why is it more important than ever to update your Spanish Will?

You may or may not know that a European regulation has been approved to regulate questions of jurisdiction, applicable law and enforcement of all successions where the deceased has passed away on or after the 17th August 2015 (Regulation No. 650/2012 of the European Parliament and of the Council of 4 July 2012).

This regulation can cause difficulties for those foreigners who have not made certain provisions regarding their last Will and Testament, especially for those habitually resident in Spain.

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Informative declaration of Assets and Rights located Abroad

A new tax form was approved in Spain in 2013 by way of Order HAP/72/2013 (Tax form 720). The purpose of this is for the Spanish Tax Authority to collect information on any assets or rights of residents (mainly, although not exclusively) located abroad. This measure was adopted as a means of combating tax fraud by establishing a certain level of control over those with assets abroad. Continue reading