All the Costs, Legal Processes & More when Buying a property in Spain
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin All the Costs, Legal Processes & More when Buying a property in Spain Buying a property in Spain is possible for both Spanish and foreign buyers. Home Details There are no restrictions preventing foreign individuals or foreign companies from purchasing real estate in Spain. However, the buying process, legal checks, taxes and completion formalities may be different from those in other countries. For this reason, foreign buyers should understand the main stages of the Spanish property purchase process before signing any documents or paying a deposit. Can Anyone Buy Property in Spain? Yes. Any foreign person or foreign company can buy property in Spain. It does not matter where the buyer is resident, and there is no requirement to become resident in Spain in order to purchase a property. However, both individuals and companies will need a Spanish identification number. For non-residents, this is usually a non-resident identification number, commonly known as the NIE. This number is necessary for the purchase process, tax purposes and registration of the property. Main Stages of the Buying Process The first important stage is usually the private purchase contract. This contract is already legally binding and normally includes a deposit. In many cases, the buyer may lose the deposit if they later decide not to proceed with the purchase without a valid contractual reason. For this reason, a proper legal due diligence should ideally be carried out before signing the private purchase contract. The private contract will normally establish a timeframe for completion. The purchase is then completed before a Spanish notary through the signing of the notarial purchase deed. After completion, the final step is to register the new owner at the Land Registry. Why Due Diligence Is Essential Due diligence is one of the most important parts of buying property in Spain. Before signing a binding contract, the buyer’s lawyer should verify several key points, including: that the seller has legal title to the property;that there are no debts, charges or encumbrances registered against the property;that the property complies with building regulations;and that the construction is legal under the applicable town hall or regional planning rules. This is especially important because Spain does not have title insurance in the same way as some other countries. In practice, the buyer’s main protection is the proper legal work carried out by their lawyer. Axes and Purchase Costs Buyers should expect additional purchase costs of approximately 10% to 14% of the purchase price. The exact amount will depend on the type of property and the region where it is located. For second-hand properties, buyers pay transfer tax. This varies by region and may range from approximately 6% to 10%. For example, in Andalusia, the current transfer tax rate is 7%. For new-build properties purchased from a developer, buyers usually pay 10% VAT plus stamp duty, which can range from approximately 1% to 1.5%, depending on the region. In addition to taxes, buyers should also consider: notary fees;Land Registry fees;and legal fees, which are often around 1% of the purchase price. As a general rule, it is advisable to budget between 10% and 14% in additional costs when purchasing property in Spain. The Role of the Notary in Spain The Spanish notary is a public official who supervises the formal completion of the transaction. The notary verifies that the parties appearing before them have the legal capacity and authority to sell and purchase the property. However, the role of the notary in Spain is more limited than in some other countries. The notary does not usually negotiate the purchase contract or carry out the full legal due diligence. These tasks are normally handled by the buyer’s lawyer. For this reason, having an independent lawyer is essential. Differences Between Spain and the United Kingdom The Spanish purchase process differs significantly from the process in the United Kingdom. In the UK, completion is normally handled directly between lawyers and does not require a public notary in the same way. In Spain, however, the transfer of ownership is completed through a notarial title deed signed before a public notary. This makes the notary an important part of the Spanish completion process, even though the preparatory legal work is carried out by the lawyers. Differences Between Spain and Germany There are also important differences between Spain and Germany. In Germany, the notary has a much stronger role in the property purchase process. The German notary usually prepares the purchase contract, follows the procedure and carries out many of the checks. In Spain, the lawyer prepares or reviews the private purchase contract, carries out the due diligence and negotiates the legal terms. The Spanish notary mainly supervises specific formal aspects at completion. Therefore, German buyers should not assume that the Spanish notary will perform the same function as a notary in Germany. How to Make a Safe Property Purchase in Spain A safe property purchase in Spain begins with choosing the right professionals. First, buyers should work with a reputable and experienced real estate agency. Second, they should appoint an independent lawyer with experience in property transactions and completions. The lawyer should carry out a full due diligence on the property, review the contract, advise on taxes and costs, assist with anti-money laundering requirements and guide the buyer through the entire process until completion. With a good real estate agent and a good lawyer, the process should be much safer and smoother. Conclusion Foreign buyers can freely purchase property in Spain, whether as individuals or through a company. However, the Spanish purchase process has its own legal and tax requirements. Buyers should be prepared for additional costs of around 10% to 14%, depending on the property and region. The most important protection for the buyer is a proper legal due diligence before signing any binding contract.
Investieren auf Mallorca: Wichtige Tipps für deutsche Immobilienkäufer
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Investieren auf Mallorca: Wichtige Tipps für deutsche Immobilienkäufer Mallorca gehört seit vielen Jahren zu den beliebtesten Zielen für deutsche Immobilienkäufer. Home Details Mallorca gehört seit vielen Jahren zu den beliebtesten Zielen für deutsche Immobilienkäufer. Das mediterrane Klima, die moderne Infrastruktur, die gute Flugverbindung nach Deutschland und die hohe Lebensqualität machen die Insel besonders attraktiv für Menschen, die eine Ferienimmobilie, einen Zweitwohnsitz oder eine Investition in Spanien suchen. Der Kaufprozess in Spanien unterscheidet sich jedoch deutlich vom deutschen System. Deshalb ist es besonders wichtig, die rechtlichen, steuerlichen und praktischen Besonderheiten vor dem Kauf genau zu kennen. Warum Mallorca für deutsche Käufer so attraktiv ist Mallorca ist für viele deutsche Käufer fast wie ein weiteres deutsches Bundesland geworden. Ein großer Teil der ausländischen Immobilienkäufe auf der Insel wird von deutschen Käufern getätigt, gefolgt von britischen und anderen internationalen Käufern. Neben dem angenehmen Klima und der Lebensqualität spielt auch die gute Erreichbarkeit eine große Rolle. Mehrere tägliche Flugverbindungen zwischen Deutschland und Mallorca machen die Insel sowohl für Ferienaufenthalte als auch für längere Aufenthalte besonders interessant. Unterschiede zwischen dem deutschen und spanischen Kaufprozess Der Immobilienkauf in Spanien unterscheidet sich wesentlich vom Immobilienkauf in Deutschland. Das liegt unter anderem daran, dass das spanische Recht ein romanisches Rechtssystem ist, während das deutsche Recht zum germanischen Rechtssystem gehört. Diese Unterschiede wirken sich auf den gesamten Kaufprozess aus, insbesondere auf die Rolle des Maklers, den privaten Kaufvertrag, die Anzahlung, die Due Diligence und den Notartermin. Die Rolle des Maklers in Spanien Viele deutsche Käufer wenden sich zunächst an einen Immobilienmakler. Dabei ist wichtig zu wissen, dass die Rolle des Maklers in Spanien anders sein kann als in Deutschland. In Spanien ist keine Maklerlizenz erforderlich, um als Makler tätig zu sein. Natürlich gibt es auf Mallorca viele sehr gute und erfahrene Maklerbüros. Dennoch sollte man darauf achten, ein etabliertes Maklerbüro mit nachweisbarer Erfahrung auszuwählen, insbesondere wenn es um die Betreuung ausländischer Käufer geht. Ein erfahrener Makler kann den Prozess erleichtern, ersetzt aber nicht die rechtliche Prüfung durch einen spezialisierten Anwalt. Reservierungsvertrag und privater Kaufvertrag Sobald sich ein Käufer für eine Immobilie entschieden hat, kann zunächst ein Reservierungsvertrag abgeschlossen werden. Dieser dient dazu, die Immobilie für einen kurzen Zeitraum zu sichern, meistens gegen Zahlung einer kleineren Reservierungsgebühr. Danach folgt in der Regel der private Kaufvertrag. Dieser private Kaufvertrag ist im spanischen Immobilienrecht von großer Bedeutung. Er bindet die Parteien und enthält normalerweise eine Anzahlung von 10 % des Kaufpreises. Die Bedeutung der 10 %-Anzahlung Die 10 %-Anzahlung ist ein sehr wichtiger Punkt im spanischen Kaufprozess. Wenn der Käufer nach Unterzeichnung des privaten Kaufvertrags ohne rechtfertigenden Grund nicht zum Notartermin erscheint oder den Kauf nicht abschließt, kann diese Anzahlung verloren gehen. Umgekehrt schützt die Anzahlung auch den Käufer. Wenn der Verkäufer den Kauf nicht vollzieht, zum Beispiel weil er später ein höheres Angebot erhalten hat, muss er dem Käufer normalerweise die 10 % zurückzahlen und zusätzlich weitere 10 % als Vertragsstrafe leisten. Deshalb sollte ein privater Kaufvertrag erst unterschrieben werden, wenn der Käufer wirklich sicher ist, die Immobilie erwerben zu wollen. Due Diligence vor der Unterzeichnung Es ist dringend zu empfehlen, die rechtliche Prüfung der Immobilie vor Unterzeichnung des privaten Kaufvertrags durchzuführen. Zwar kann der Vertrag theoretisch unter Bedingungen gestellt werden, zum Beispiel abhängig von einem positiven Ergebnis der Due Diligence. In der Praxis ist es jedoch sicherer, alle wichtigen Prüfungen vorher abzuschließen, um spätere Streitigkeiten oder Auslegungsprobleme zu vermeiden. Die Due Diligence sollte unter anderem prüfen: ob die Immobilie lastenfrei ist;ob Schulden oder Belastungen bestehen;ob alle Baugenehmigungen vorhanden sind;ob Umbauten legalisiert wurden;ob die Bewohnbarkeitsbescheinigung vorliegt;und ob die Immobilie baurechtlich ordnungsgemäß ist. Baurechtliche Prüfung auf Mallorca Gerade auf Mallorca ist die baurechtliche Prüfung besonders wichtig. Es muss überprüft werden, ob das Haus legal errichtet wurde, ob alle Erweiterungen oder Renovierungen genehmigt sind und ob die Immobilie den geltenden baurechtlichen Vorschriften entspricht. Bei ländlichen Immobilien ist besondere Vorsicht geboten, da Erweiterungen, Renovierungen oder Nutzungsänderungen eingeschränkt sein können. Versteckte Risiken wie nicht genehmigte Anbauten, fehlende Lizenzen oder baurechtliche Unklarheiten können erhebliche Folgen haben. Zeitrahmen bis zum Notartermin Nach Unterzeichnung des privaten Kaufvertrags wird normalerweise eine Frist bis zum Notartermin vereinbart. Diese Frist ist frei verhandelbar. Üblich sind Zeiträume zwischen einem und drei Monaten, in manchen Fällen auch länger. Wenn der Käufer eine Finanzierung benötigt, insbesondere über eine spanische Bank, sollte ausreichend Zeit eingeplant werden. Finanzierungen in Spanien können leicht zwei Monate oder länger dauern. Zahlung des Kaufpreises beim Notar Ein weiterer wichtiger Unterschied zu Deutschland ist der Zahlungsablauf. In Spanien wird der vollständige Kaufpreis normalerweise am Tag der notariellen Kaufurkunde bezahlt. An diesem Tag erhält der Käufer die Schlüssel und wird Eigentümer der Immobilie. Eine spätere Rückabwicklung wie in Deutschland gibt es in dieser Form nicht. Deshalb müssen Finanzierung, Prüfung und Vertragsunterlagen vor dem Notartermin vollständig geklärt sein. Touristische Vermietung und Ferienlizenz Wenn die Immobilie als Investition gekauft wird, spielt die Möglichkeit der touristischen Vermietung eine wichtige Rolle. In Spanien gilt eine Vermietung in der Regel als touristische Vermietung, wenn die Mietdauer unter zwei Monaten liegt und die Immobilie über Plattformen oder Agenturen wie Airbnb vermietet wird. Für längere Mietzeiträume, zum Beispiel drei oder vier Monate, ist normalerweise keine touristische Vermietungslizenz erforderlich. Auf Mallorca und den Balearen sind touristische Vermietungslizenzen jedoch stark reguliert. Es gibt Zonen, in denen touristische Vermietung nicht erlaubt ist, und die Anzahl der Lizenzen ist begrenzt. Außerdem kann eine Eigentümergemeinschaft die touristische Vermietung in bestimmten Fällen untersagen. Wer eine Immobilie mit dem Ziel kauft, Mieteinnahmen über Ferienvermietung zu erzielen, sollte diesen Punkt unbedingt im Rahmen der Due Diligence prüfen lassen. Steuern beim Immobilienkauf auf Mallorca Auch steuerlich gibt es erhebliche Unterschiede zwischen Spanien und Deutschland. Beim Kauf einer gebrauchten Immobilie auf den Balearen fällt Grunderwerbsteuer an. Diese liegt je nach Kaufpreis in der Regel zwischen 8 % und 11 %. Die Notarkosten sind in Spanien im Vergleich zu Deutschland häufig niedriger, da der spanische Notar
Golden Visa in Spain Abolished
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Golden Visa in Spain Abolished What Non-EU Citizens Can Do Now | Legal Alternatives Explained Home Details The End of Spain’s Golden Visa: What Are the Alternatives? Spain’s Golden Visa programme has come to an end, marking an important change for non-EU citizens who wish to live in Spain through property investment. Although the Golden Visa was available to all non-EU nationals, it was particularly relevant for British citizens, many of whom have traditionally bought property in Spain and spent long periods of time in the country. With the abolition of this programme, non-EU citizens who want to move to Spain, spend extended periods here or become residents will now need to consider alternative visa options. What Was the Golden Visa? The Golden Visa was one of the most flexible ways for non-EU citizens to obtain residence in Spain. It was especially attractive because it allowed applicants to obtain a residence permit by investing more than €500,000 in Spanish property. One of its main advantages was flexibility. Golden Visa holders could spend as much time as they wished in Spain, while still avoiding Spanish tax residency if they stayed fewer than 183 days per year. This made it a very popular option for property buyers who wanted to enjoy Spain for long periods without necessarily becoming full tax residents. Why Has the Golden Visa Been Abolished? Spain is not the only European country to phase out property investment visas. Other countries, such as Ireland and Portugal, have also moved away from similar investment-based residence programmes. As a result, foreign property ownership alone will no longer be sufficient to obtain a Spanish residence permit. This is a major change for non-EU citizens who previously relied on the Golden Visa as a straightforward route to residency. The 90-Day Rule for Non-EU Citizens Without a residence visa, non-EU citizens can generally only stay in Spain and the Schengen Area for up to 90 days within any 180-day period. This limitation can be difficult for people who own property in Spain and wish to spend longer periods in the country. For example, it may not be enough for someone who wants to spend the entire winter in Spain, stay for several months each year or gradually move towards full residence. For these individuals, choosing the correct visa route is now more important than ever. What Visa Options Are Still Available? With the Golden Visa no longer available for new property investment applications, non-EU citizens must consider other immigration options. The most relevant alternatives include: the non-lucrative visa;the digital nomad visa;and the entrepreneur visa. Each visa has different requirements and is suitable for different types of applicants. The Non-Lucrative Visa The non-lucrative visa may be suitable for individuals who wish to live in Spain without working. This option is often used by retirees or people who have sufficient financial resources to support themselves. However, unlike the Golden Visa, the non-lucrative visa does not allow the holder to work in Spain. This is an important difference for anyone who wishes to continue professional or business activity while living in the country. The Digital Nomad Visa The digital nomad visa has become one of the most attractive alternatives for non-EU citizens who can work remotely. This visa may be suitable for professionals who work for a foreign company and are allowed to perform their work from Spain. For example, a British citizen working remotely for a UK company may be able to apply for the digital nomad visa, provided that all requirements are met. The visa is designed to attract qualified professionals, especially in technology and other sectors where remote work is possible. Another important advantage is that the applicant’s family may also be included in the visa application. Tax Benefits for Digital Nomads The digital nomad visa may also be linked to a very attractive tax regime. If the applicant qualifies, they may be able to apply for the Beckham tax regime. Under this regime, employment income may be taxed at a flat rate of 24%, while certain foreign income and foreign assets may remain outside Spanish taxation. This can make the digital nomad visa especially interesting for professionals, company directors and remote workers who want to live in Spain while continuing to work for a foreign employer. The Entrepreneur Visa The entrepreneur visa remains another possible route for non-EU citizens. This option may be suitable for individuals who intend to start a business or develop an innovative project in Spain. However, it is not suitable for everyone, as not every person moving to Spain wishes to open or operate a business. For those who do, the entrepreneur visa can still be an available option, provided the project meets the relevant legal requirements. Why Legal Advice Is Now More Important The Golden Visa was relatively simple because it applied to anyone who invested more than €500,000 in Spanish property and met the remaining requirements. Now, the situation is more complex. Each applicant’s personal, professional and financial circumstances must be reviewed carefully in order to identify the most appropriate visa route. For this reason, non-EU citizens who wish to move to Spain should obtain specialised legal advice before making decisions or starting the application process. What Happens to Existing Golden Visa Holders? People who already obtained a Golden Visa before the programme ended do not need to be concerned. Golden Visas granted before the abolition date remain valid. Family members may still benefit from the existing Golden Visa, and renewals should continue to be possible under the previous legal framework. In other words, the abolition mainly affects new applicants, not those who already hold a valid Golden Visa. Do Not Overstay in Spain One of the most important practical points for future applicants is to remain legally in Spain at all times. Anyone
Everything you need to know about Tax Residency in Spain
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Everything you need to know about Tax Residency in Spain Determining whether you are a tax resident in Spain may seem like a simple question, but in practice it can be complex. Home Details Tax Residency in Spain: When Are You Considered a Spanish Tax Resident? Determining whether you are a tax resident in Spain may seem like a simple question, but in practice it can be complex. Many individuals spend time in Spain, own property, have family connections or maintain economic interests in more than one country. As a result, tax residency can sometimes become a matter of dispute between Spain and another jurisdiction. Understanding the rules is essential before moving to Spain, spending long periods in the country or making important financial decisions. When Are You a Tax Resident in Spain? Under Spanish law, an individual may be considered tax resident in Spain if any of the following conditions apply: they spend more than 183 days in Spain during a calendar year;their spouse and minor children live in Spain, provided they are not legally separated;or their main economic or vital interests are located in Spain. Although these criteria may appear straightforward, each case must be analysed carefully. For example, a person may spend significant time in Spain but still maintain economic activities, businesses or assets in another country. In such situations, both countries may potentially consider the individual to be tax resident. The 183-Day Rule Is Not the Only Factor Many people assume that spending fewer than 183 days in Spain automatically means they are not Spanish tax resident. This is not always correct. Even if you spend fewer than 183 days in Spain, the Spanish tax authorities may still consider you tax resident if your family lives in Spain or if your main economic interests are located in the country. It is also important to consider whether Spain is the country where you spend the greatest number of days during the year. For example, if you spend 160 days in Spain but do not spend more time in any other country, and you cannot provide a tax residence certificate from another jurisdiction, there may still be a risk of being considered Spanish tax resident. What Happens If Two Countries Consider You Tax Resident? It is possible for two countries to consider the same person tax resident under their domestic laws. For example, Spain may consider someone tax resident because they spend substantial time in Spain, while another country may also consider them resident because they maintain their business or economic interests there. If there is a double tax treaty between Spain and the other country, the treaty will contain rules to determine where the person should be considered tax resident for treaty purposes. These rules usually examine factors such as permanent home, centre of vital interests, habitual residence and nationality. The aim is to prevent the same person from being treated as fully tax resident in two countries for the same purposes. How Can You Check If You Are Tax Resident? There is no single automatic answer that applies to every case. Tax residency depends on the individual’s personal, family and economic circumstances. For this reason, anyone who spends significant time in Spain should review their situation carefully. The most critical cases are often those where the individual believes they are not tax resident in Spain and has not registered as such. If the Spanish tax authorities later carry out an inspection, they may determine that the person should have been treated as Spanish tax resident. For this reason, professional advice is strongly recommended, especially for individuals with property, family, business interests or regular presence in Spain. Common Situations Where People May Become Spanish Tax Resident Without Realising Some of the most common situations include: families living in Spain while one spouse remains registered abroad;children attending school in Spain;individuals spending significant time in Spain without a clear tax residence elsewhere;property owners who gradually spend more time in Spain each year;or individuals who cannot provide a valid tax residence certificate from another country. Each case must be reviewed individually, as there are no universal rules that apply to every situation. Worldwide Income Taxation in Spain If you become tax resident in Spain, you are generally subject to Spanish taxation on your worldwide income. This means that you may need to declare income from all countries, including: salaries;pensions;rental income;dividends;interest;capital gains;and other investment or business income. Spain has an extensive network of double tax treaties, which may help prevent the same income from being taxed twice. Depending on the treaty, tax paid abroad may be deductible or creditable against the Spanish tax liability. If no treaty applies, Spanish domestic tax rules may still allow certain relief for foreign taxes paid. Pensions and Foreign Income Worldwide income taxation is particularly important for retirees moving to Spain. Pension income, investment income and rental income from abroad may all become reportable in Spain once the individual is Spanish tax resident. The exact tax treatment will depend on the type of income, the country from which it arises and the applicable double tax treaty. For this reason, retirees should analyse their tax position before relocating to Spain permanently or spending more than six months per year in the country. Taxation on Assets and Wealth Spanish tax residency can also affect the taxation of assets. If you are tax resident in Spain, you may be subject not only to tax on worldwide income, but also to taxation on worldwide assets. Depending on the autonomous region where you live, wealth tax may apply. In addition, Spain has introduced a state-level solidarity tax on large fortunes, which may affect individuals with significant net assets. This tax may apply to net assets above certain thresholds and can be especially relevant for high-net-worth individuals moving
All Your Moving to Spain Questions Answered
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin All Your Moving to Spain Questions Answered! – Retiring, Digital Nomad Visa & More COVID has significantly changed the way many people work. Home Details Moving to Spain: Retirement, Remote Work and the Digital Nomad Visa COVID has significantly changed the way many people work. In recent years, Spain has seen an increasing number of foreign clients who continue working for companies in their home countries while living remotely in Spain with their families. For many people, this has opened the door to a new lifestyle: living in Spain while maintaining employment or professional activity abroad. Coming to Spain from the European Union For EU citizens, moving to Spain is generally a straightforward process. EU nationals have the right to live and work in Spain. In order to register as residents, they usually need to prove that they have: private health insurance covering them in Spain, or public health cover from another EU country that can be transferred to Spain;sufficient financial means to support themselves;and either a rental contract or title deed proving that they have accommodation in Spain. The application is usually made directly at the police station in Spain, and the residence certificate is normally issued quickly. This right of residence also extends to spouses, even if the spouse is not an EU citizen. Coming to Spain to Retire from Outside the EU For non-EU citizens who wish to retire in Spain, the usual route is the non-lucrative visa. This visa is designed for people who do not intend to work in Spain but have sufficient financial resources to live in the country. Applicants generally need to provide: private health insurance;proof of sufficient funds;a criminal record certificate;and a medical certificate confirming that they do not suffer from any contagious illness that could pose a public health risk. Unlike EU residence applications, the non-lucrative visa process normally starts at the Spanish consulate in the applicant’s home country. If the applicant meets the requirements, obtaining a non-lucrative visa should generally be a manageable process. Working Remotely from Spain For EU citizens, working from Spain is simple because they do not need a visa to live or work in the country. However, for non-EU citizens who want to work remotely from Spain for a foreign company, the digital nomad visa has become a very attractive option. Spain introduced this visa to respond to the growing number of professionals who can work remotely and wish to live abroad without entering the local employment market. The Digital Nomad Visa The digital nomad visa is available to non-EU citizens who wish to live in Spain while working remotely for a foreign employer or clients located mainly outside Spain. This visa is particularly useful for highly qualified professionals who can perform their work from Spain without being employed by a Spanish company. To qualify, applicants generally need to show that: they have worked for their foreign employer or client for at least three months;the foreign company has been operating for more than one year;the work can be performed remotely;the employer authorises them to work from Spain;and the applicant has the necessary qualifications or professional experience for the role. The job must generally be considered highly qualified, which may be demonstrated through university qualifications or significant professional experience. Family Members One of the main advantages of the digital nomad visa is that it can also include family members. This may include: the applicant’s spouse;minor children;and adult children who remain financially dependent on the applicant. This makes the visa particularly attractive for professionals who wish to relocate to Spain with their family while continuing to work for a foreign company. Application Process and Duration The digital nomad visa application can be started either at the Spanish consulate in the applicant’s home country or directly from Spain, provided the applicant is legally in Spain at the time. For example, a person who is in Spain under the 90-day tourist allowance may apply from within Spain, as long as they remain legally in the country. If the application is submitted from Spain, the residence authorisation may be granted for three years and can be renewed. In practice, approval times can vary. Some applications may be approved within one month, while others may take up to three months. Tax Advantages of the Digital Nomad Visa The digital nomad visa may also provide access to a very favourable tax regime. If the visa is approved, the applicant may be able to apply for the so-called Beckham tax regime. Under this regime, although the individual lives in Spain, they may be taxed as a non-resident for certain tax purposes. This can mean that employment income is taxed at a fixed rate of 24%, while certain foreign-source income, such as dividends, interest or capital gains, may not be taxed in Spain. This makes the digital nomad visa particularly attractive for professionals with international income or investments outside Spain. A Competitive and Attractive System The digital nomad visa can create a beneficial situation for both Spain and foreign professionals. Spain attracts highly qualified workers and new residents who contribute to the local economy, without necessarily competing for jobs in the Spanish labour market. At the same time, professionals can enjoy living in Spain while continuing to work for foreign employers. For many remote workers, this offers the possibility of combining international employment with Spain’s climate, lifestyle and quality of life. Conclusion Spain offers several options for foreigners who wish to relocate, retire or work remotely from the country. EU citizens benefit from a simple residence process, while non-EU retirees may apply for a non-lucrative visa if they have sufficient financial means and health insurance. For non-EU professionals who wish to work remotely, the digital nomad visa has become one of the most attractive routes. Combined with the potential benefits of
Your trusted lawyers in Sotogrande, Marbella & Mallorca
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Your trusted lawyers in Sotogrande, Marbella & Mallorca The firm focuses mainly on assisting foreign clients who wish to move to Spain, invest in Spain or carry out business activities in the country. Home Details González & Sánchez & Partners: A Boutique Law and Tax Firm in Spain González & Sánchez & Partners is a boutique law and tax firm based in Mallorca, Spain. The firm focuses mainly on assisting foreign clients who wish to move to Spain, invest in Spain or carry out business activities in the country. With a multilingual team and extensive experience in legal and tax matters, the firm offers a personalised and highly specialised service to international clients. A Boutique Firm with an International Focus González & Sánchez & Partners can be described as a boutique law and tax firm because of its specialised approach and client-focused service. Rather than covering every possible area of law, the firm concentrates on the legal and tax needs of foreign individuals, investors and companies with interests in Spain. This includes clients who are planning to relocate, buy property, invest, start a business or organise their tax affairs in Spain. Experience and Background The firm was founded in 1997 and has developed more than 25 years of experience advising both private clients and companies. Over the years, González & Sánchez & Partners has built a strong reputation for assisting international clients with complex legal and tax matters in Spain. Its long-standing presence in Mallorca gives the firm a deep understanding of the local market, while its international profile allows it to work effectively with clients from different jurisdictions. A Multilingual Team The firm has a team of approximately 20 professionals. This size allows González & Sánchez & Partners to offer a personal and close relationship with clients, while still having the internal capacity to cover a wide range of legal and tax matters. The team can assist clients in several languages, including: GermanEnglishSpanishFrench This multilingual capacity is especially valuable for foreign clients who need clear legal advice in a language they understand. A Multilingual Team The firm has a team of approximately 20 professionals. This size allows González & Sánchez & Partners to offer a personal and close relationship with clients, while still having the internal capacity to cover a wide range of legal and tax matters. The team can assist clients in several languages, including: GermanEnglishSpanishFrench This multilingual capacity is especially valuable for foreign clients who need clear legal advice in a language they understand. Main Areas of Practice González & Sánchez & Partners covers several important areas of law, with a particular focus on tax law, property law, company law and civil law. The firm does not cover criminal law, as its practice is focused on legal and tax matters connected to private clients, businesses, real estate and investment in Spain. Tax Law Tax law is one of the main areas of the firm’s practice. The team advises clients on a broad range of tax matters, including tax planning, tax inspections and the preparation of tax returns. This is particularly important for foreign individuals and companies, as moving to Spain, owning property or investing in the country can create complex tax obligations. Property Law Property law is also a significant part of the firm’s work. The firm assists clients with property purchases, sales, completions, construction matters and urban planning issues. This area is especially relevant for foreign clients buying homes, holiday properties or investment properties in Spain. Company Law González & Sánchez & Partners also advises on company law. This includes setting up companies in Spain and ensuring that they comply with the relevant legal requirements. The firm helps companies operate properly from a legal point of view, providing support both during the incorporation process and throughout the life of the business. Civil Law The firm also handles civil law matters connected to its clients’ personal, family and business interests in Spain. This allows González & Sánchez & Partners to provide broader legal support to clients who require assistance beyond tax or property matters. Conclusion González & Sánchez & Partners is a boutique law and tax firm with offices in Mallorca and more than 25 years of experience advising international clients. With a multilingual team and a strong focus on foreign individuals, investors and businesses, the firm offers specialised advice in tax law, property law, company law and civil law. Its combination of local knowledge, international experience and personalised service makes it a trusted legal partner for clients who wish to live, invest or do business in Spain. CONTACT US MARBELLA 952 901 622 SOTOGRANDE 956 790 013 PALMA DE MALLORCA 971 626 860 info@gonzalez-partners.com Name Email Phone Service Office Select an officeMallorcaMarbellaSotogrande Message Send message ©2023 GONZÁLEZ SÁNCHEZPARTNERS HOME ABOUT US TAX LAW CORPORATE LAW REAL ESTATE LAW RELOCATION ADVISORY EMPLOYMENT LAW NEWS CONTACT MARBELLA Ricardo Soriano Avenue, 29, BuildingAzahara Offices, 5th Floor, 29601, Marbella, Málaga Tel: +34 952 901 622 Fax: +34 952 900 275 info@gonzalez-partners.com SOTOGRANDE Sotogrande Port, Plaza delAgua, E-1-1, Portal 1, 11310 Sotogrande,Cádiz Tel: +34 956 790 013 Fax: +34 952 790 120 info@gonzalez-partners.com PALMA DE MALLORCA Carrer dels Apuntadors, 4Centre, 07012 Palma,Illes Balears Tel: +34 971 626 860 info@gonzalez-partners.com Privacy Policy Coocky Policy Legal Notice Website designed by AlltimeMedia
What you need to know about international tax rules when moving to Spain?
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin What you need to know about international tax rules when moving to Spain? Double tax treaties are an essential part of international tax planning, especially for individuals and companies. Home Details Double Tax Treaties in Spain Double tax treaties are an essential part of international tax planning, especially for individuals and companies with income, assets or economic interests in more than one country. In Spain, double tax treaties are particularly relevant for expatriates, foreign property owners, retirees and international companies operating across borders. They help determine where a person or company is considered tax resident and which country has the right to tax certain types of income or assets. What Is a Double Tax Treaty? A double tax treaty is an agreement between two countries designed to prevent the same income or asset from being taxed twice. These treaties establish rules to determine: where a person is tax resident;which country has the right to tax specific income;how taxation is shared between countries;and whether taxes paid in one country can be deducted or credited in another. Spain has double tax treaties with many countries, including Germany, the United Kingdom, France and several others. Although each treaty has its own specific wording, most double tax treaties follow similar principles. Why Are Double Tax Treaties Important? Double tax treaties become relevant when a person has connections with more than one country. This may happen, for example, when someone: owns a holiday home in Spain;spends part of the year in Spain;receives income from another country;moves their tax residence to Spain;rents out Spanish property;or operates a business in Spain through a foreign company. Without a double tax treaty, two countries could potentially claim the right to tax the same person or the same income. Tax Residence and the 183-Day Rule One of the first issues to determine is where a person is tax resident. For example, if a German client buys a property in Mallorca, it may initially appear that they remain tax resident in Germany and simply own a holiday home in Spain. However, this can become more complex if the person spends significant time in Spain. Under Spanish domestic law, a person may be considered Spanish tax resident if: they spend more than 183 days in Spain during the calendar year;their spouse or dependent family members live in Spain;or their main economic or vital interests are located in Spain. Therefore, anyone buying a holiday home in Spain should be careful not to unintentionally become Spanish tax resident. The Risk of Dual Tax Residence A person may sometimes be considered tax resident in two countries at the same time. For example, Spain may consider a person tax resident because they spend more than 183 days in Spain, while Germany may also consider them resident because their main economic interests remain in Germany. This is where the double tax treaty becomes essential. The treaty contains rules to determine which country should be treated as the person’s tax residence for treaty purposes. In many cases, presenting a tax residence certificate from the other country may help challenge or override the Spanish assumption of tax residence, provided that Spain has a double tax treaty with that country. Spanish Property and Rental Income Double tax treaties are also very important when it comes to income generated from real estate. As a general rule, rental income from a property may be taxed in the country where the property is located. For example, if a German tax resident owns a holiday home in Mallorca and rents it out, the rental income generated from that Spanish property will be taxable in Spain. This principle generally applies regardless of whether the owner is tax resident in Germany, the United Kingdom, France or another country. In other words, income arising from Spanish real estate is normally subject to taxation in Spain. Property Ownership Through Companies In the past, many foreign investors used companies to acquire and hold properties in Spain. However, Spain has tightened its rules through new and amended double tax treaties. Under many modern treaties, the sale of shares in a company may be taxable in Spain if more than 50% of the company’s assets consist of Spanish real estate. This means that if a foreign company mainly owns Spanish property, the sale of the company’s shares may still trigger taxation in Spain. This rule is designed to prevent investors from avoiding Spanish tax by selling company shares instead of directly selling the property. Capital Gains, Foreign Income and Business Structures Double tax treaties are also relevant when dealing with capital gains, foreign income and international business structures. As a general rule, capital gains from movable assets are taxed in the country where the seller is tax resident. However, exceptions may apply, particularly when the assets sold are shares in companies whose value mainly derives from real estate located in another country. In such cases, Spain may have the right to tax the gain if the underlying assets are Spanish properties. When a foreign individual moves to Spain, the applicable double tax treaty will determine how income from the former country of residence is taxed. This may include pensions, rental income, dividends, interest, capital gains or business income. Private pensions are often taxable in Spain once the individual becomes Spanish tax resident, although public-sector pensions may remain taxable in the country that pays them, depending on the treaty. Dividends may be taxed in both countries, although any withholding tax paid abroad can usually be credited against the Spanish tax liability. Interest income, on the other hand, is often taxable only in the country of residence, although this depends on the specific treaty. Double tax treaties are also important for companies operating internationally. A foreign company doing business in Spain may choose between a permanent establishment or a
Inheritance & Gift Tax in Spain Explained | Why Andalusia Matters
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Inheritance & Gift Tax in Spain Explained | Why Andalusia Matters Each autonomous region has th e authority to introduce its own deductions, reductions and tax benefits. Home Details Inheritance and gift tax in Spain is a national tax, but each autonomous region has the authority to introduce its own deductions, reductions and tax benefits. As a result, the amount of tax payable can vary significantly depending on the region where the deceased person, donor, heir or beneficiary is resident. What Is Inheritance Tax? Inheritance tax is payable when a person passes away and their assets are transferred to their heirs. The amount of tax due depends on several factors, including: the value of the assets inherited;the relationship between the deceased person and the heir;whether the beneficiary is a spouse, child, grandchild, family member or non-family member;and the autonomous region involved. Close family members usually benefit from more favourable tax treatment than distant relatives or unrelated beneficiaries. What Is Gift Tax? Gift tax applies when a person transfers assets to another person during their lifetime. In other words, it covers gifts made voluntarily by a donor to a beneficiary before death. Inheritance tax and gift tax are closely connected, as they are governed by the same legislation and generally apply the same tax rates. However, the available reductions and tax benefits may vary depending on the autonomous region. Why Does the Region Matter? The region where the deceased person, donor, heir or beneficiary resides is extremely important due to the major differences in inheritance and gift tax rules across Spain. Some regions offer very generous tax reductions, while others may apply a significantly higher tax burden. For this reason, regional tax planning is a key element when organising an inheritance, lifetime gift or family succession strategy in Spain. Andalusia and Madrid: Favourable Regions for Tax Planning Andalusia and the Community of Madrid are currently considered two of the most favourable regions in Spain for inheritance and gift tax purposes. Both regions offer very significant reductions, especially for transfers between close family members. This makes them particularly attractive for families who are considering succession planning or lifetime transfers of assets. Inheritance Tax in Direct Family Lines In Andalusia, inheritance tax for direct family members benefits from highly favourable treatment. This applies to transfers between: parents and children;grandparents and grandchildren;and spouses. In these cases, the first €1 million is 100% exempt from inheritance tax. Any amount above €1 million benefits from a 99% reduction. In practice, this means that inheritance tax between close family members in Andalusia and Madrid has been almost entirely abolished. Gift Tax Advantages The same favourable treatment applies to gift tax in these regions. Gifts between close family members may benefit from a 99% reduction, making lifetime transfers of wealth much more tax-efficient than in many other parts of Spain. This can be especially useful for families who wish to transfer assets during their lifetime rather than waiting until inheritance takes place. Succession Planning Opportunities Due to these substantial exemptions and reductions, Andalusia and the Community of Madrid are often attractive regions for succession and estate planning. Families with significant assets may consider transferring property, shares or other assets during their lifetime in order to benefit from the almost non-existent gift tax regime currently available in these regions. However, every case must be analysed individually, as the applicable rules may depend on the residence of the parties, the type of asset transferred and the family relationship involved. Conclusion Inheritance and gift tax in Spain can vary dramatically depending on the autonomous region and the relationship between the parties involved. Andalusia and the Community of Madrid currently offer some of the most favourable tax conditions in Spain, particularly for transfers between spouses, parents, children and grandchildren. For individuals or families with significant assets, proper succession planning is essential. Obtaining specialised legal and tax advice is highly recommended in order to structure inheritances and lifetime gifts efficiently, reduce potential tax exposure and ensure full compliance with Spanish tax regulations. CONTACT US MARBELLA 952 901 622 SOTOGRANDE 956 790 013 PALMA DE MALLORCA 971 626 860 info@gonzalez-partners.com Name Email Phone Service Office Select an officeMallorcaMarbellaSotogrande Message Send message ©2023 GONZÁLEZ SÁNCHEZPARTNERS HOME ABOUT US TAX LAW CORPORATE LAW REAL ESTATE LAW RELOCATION ADVISORY EMPLOYMENT LAW NEWS CONTACT MARBELLA Ricardo Soriano Avenue, 29, BuildingAzahara Offices, 5th Floor, 29601, Marbella, Málaga Tel: +34 952 901 622 Fax: +34 952 900 275 info@gonzalez-partners.com SOTOGRANDE Sotogrande Port, Plaza delAgua, E-1-1, Portal 1, 11310 Sotogrande,Cádiz Tel: +34 956 790 013 Fax: +34 952 790 120 info@gonzalez-partners.com PALMA DE MALLORCA Carrer dels Apuntadors, 4Centre, 07012 Palma,Illes Balears Tel: +34 971 626 860 info@gonzalez-partners.com Privacy Policy Coocky Policy Legal Notice Website designed by AlltimeMedia
Wealth tax in Spain for foreigners
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Wealth tax in Spain for foreigners Spain has a national wealth tax that is levied on the value of an individual’s assets as of 31 December each year. Home Details What Is Wealth Tax in Spain? Spain has a national wealth tax that is levied on the value of an individual’s assets as of 31 December each year. Although it is a national tax, the different autonomous regions — such as Andalusia, Community of Madrid or Valencian Community — have the authority to regulate certain aspects of the tax and apply their own reductions or exemptions. How Does Wealth Tax Affect Residents and Non-Residents? The taxation rules differ depending on whether the individual is a tax resident in Spain or a non-resident. Tax Residents in Spain Spanish tax residents are taxed on their worldwide assets. This includes: real estate located in Spain and abroad; financial assets held in Spain or overseas; investments; vehicles; jewellery; and any other assets with economic value. Non-Residents in Spain Non-residents are only taxed on assets located in Spain. This may include: Spanish properties; Spanish bank accounts; investments in Spain; and other assets situated within Spanish territory. Is There a Tax-Free Allowance? Yes. There is a general tax-free allowance of €700,000 per taxpayer. However, autonomous regions may apply additional tax benefits depending on: the region where the taxpayer resides; or, for non-residents, where the assets are located. How Does Wealth Tax Vary Between Spanish Regions? Wealth tax rules vary significantly between Spain’s autonomous communities. Andalusia and Madrid: The Most Favourable Regions Currently, Andalusia and Community of Madrid offer some of the most favourable wealth tax regimes in Spain. Both regions apply a 100% rebate on Wealth Tax, meaning that in practice the tax is fully exempt. This represents a major advantage considering that the general wealth tax rates can range from 0.2% to 3.5%, depending on the total value of the assets. For high-net-worth individuals, this can result in substantial tax savings. What Is the Solidarity Tax on Large Fortunes? In an effort to partially harmonise wealth taxation across Spain, the Spanish Government recently introduced a new tax known as the Temporary Solidarity Tax on Large Fortunes. This tax applies regardless of the autonomous region where the taxpayer lives or where the assets are located. When Does It Apply? The tax applies to net assets exceeding €3.7 million. Its main purpose is to ensure a minimum level of taxation for high-net-worth individuals, even in regions where Wealth Tax is effectively exempt due to regional rebates. Conclusion Wealth Tax in Spain can have a significant impact on both residents and non-residents, particularly for individuals with substantial assets or major property investments. As tax rules vary between autonomous regions and new taxes such as the Solidarity Tax continue to evolve, obtaining specialised legal and tax advice is essential to optimise taxation and ensure full compliance with Spanish regulations. CONTACT US MARBELLA 952 901 622 SOTOGRANDE 956 790 013 PALMA DE MALLORCA 971 626 860 info@gonzalez-partners.com Name Email Phone Service Office Select an officeMallorcaMarbellaSotogrande Message Send message ©2023 GONZÁLEZ SÁNCHEZPARTNERS HOME ABOUT US TAX LAW CORPORATE LAW REAL ESTATE LAW RELOCATION ADVISORY EMPLOYMENT LAW NEWS CONTACT MARBELLA Ricardo Soriano Avenue, 29, BuildingAzahara Offices, 5th Floor, 29601, Marbella, Málaga Tel: +34 952 901 622 Fax: +34 952 900 275 info@gonzalez-partners.com SOTOGRANDE Sotogrande Port, Plaza delAgua, E-1-1, Portal 1, 11310 Sotogrande,Cádiz Tel: +34 956 790 013 Fax: +34 952 790 120 info@gonzalez-partners.com PALMA DE MALLORCA Carrer dels Apuntadors, 4Centre, 07012 Palma,Illes Balears Tel: +34 971 626 860 info@gonzalez-partners.com Privacy Policy Coocky Policy Legal Notice Website designed by AlltimeMedia
The market for tourist and short-stay rentals in Spain continues to grow,
HOME ABOUTS US How We Give Back Our Offices Our history MOVING TO SPAIN Relocation Real Estate Employment TAX INVESTING IN SPAIN Real Estate Investment Corporate TAX NEWS LET´S TALK Facebook Instagram Linkedin Tourist Rentals in Spain: Licenses, Taxes and How to Comply with the Law The market for tourist and short-stay rentals in Spain continues to grow Home Details El mercado de los alquileres turísticos y de corta estancia en España sigue creciendo, especialmente a través de plataformas como Airbnb y Booking.com. Sin embargo, muchos propietarios todavía tienen dudas sobre qué licencias necesitan, qué impuestos deben pagar y cómo cumplir correctamente con la normativa vigente. En este artículo te explicamos de forma clara cómo funcionan los alquileres de corta duración en España y qué obligaciones fiscales y legales debes tener en cuenta. What is considered a short-term rental? Short-term rentals are defined as any rental for a period of less than two months. This includes, in particular, vacation rentals marketed through online platforms such as Airbnb, Booking.com, and similar services. What legislation applies to tourist rentals? Tourist rentals are primarily regulated by the autonomous communities. Each regional government establishes its own rules, requirements, and licenses for holiday homes or short-term rentals. However, the Spanish government recently approved new regulations with the aim of partially harmonizing these regulations across the country. When is the new state license required? This new requirement primarily affects: rentals advertised on online platforms;bookings managed digitally; payments made through the platform itself. In other words, typical bookings made through Airbnb or Booking.com. What happens if you rent through an agency? If the rental is managed through a traditional agency and payment is not made through an online platform, this new specific state license will not be required. In that case, you will only need to comply with the tourist license required by your autonomous community. What taxes are paid on tourist rentals? Taxation depends on whether the owner is a tax resident in Spain or a non-resident. Tax Residents in Spain Residents in Spain must declare income obtained from short-term or holiday rentals in their annual income tax return. In addition, they may deduct expenses related to the rental activity, such as: utilities; maintenance; community fees; insurance; professional fees; mortgage interest, among others. In this case, tax is calculated on the net profit. Non-Residents in Spain Non-resident property owners must file a specific tax return for income obtained from holiday rentals in Spain. The taxation depends on the country of tax residence: Residents in the European Union Citizens residing in EU countries may deduct expenses and are taxed on the net rental income at a rate of 19%. Residents Outside the European Union Property owners residing in non-EU countries — such as the United Kingdom, the United States or Switzerland — cannot deduct expenses and are taxed on the gross rental income at a rate of 24%. How to Ensure Legal and Tax Compliance To avoid penalties and legal issues, property owners should: 1. Obtain All Necessary Licences It is essential to verify which licences are required under both regional regulations and the new national legislation. 2. Seek Legal Advice A specialised lawyer can confirm which permits and obligations apply in each specific case. 3. Work with a Spanish Tax Advisor A Spanish accountant or tax advisor can correctly prepare the required tax returns and ensure that the appropriate taxes are paid on the rental income. Conclusion Holiday rentals in Spain can be an excellent source of income, but they also involve important legal and tax obligations. Regulations vary depending on the autonomous region and the owner’s tax residency status, so obtaining professional advice is essential to operate safely and profitably. If you own a holiday property or are considering renting out your property on a short-term basis, ensuring compliance from the beginning can help you avoid significant problems in the future. CONTACT US MARBELLA 952 901 622 SOTOGRANDE 956 790 013 PALMA DE MALLORCA 971 626 860 info@gonzalez-partners.com Name Email Phone Service Office Select an officeMallorcaMarbellaSotogrande Message Send message ©2023 GONZÁLEZ SÁNCHEZPARTNERS HOME ABOUT US TAX LAW CORPORATE LAW REAL ESTATE LAW RELOCATION ADVISORY EMPLOYMENT LAW NEWS CONTACT MARBELLA Ricardo Soriano Avenue, 29, BuildingAzahara Offices, 5th Floor, 29601, Marbella, Málaga Tel: +34 952 901 622 Fax: +34 952 900 275 info@gonzalez-partners.com SOTOGRANDE Sotogrande Port, Plaza delAgua, E-1-1, Portal 1, 11310 Sotogrande,Cádiz Tel: +34 956 790 013 Fax: +34 952 790 120 info@gonzalez-partners.com PALMA DE MALLORCA Carrer dels Apuntadors, 4Centre, 07012 Palma,Illes Balears Tel: +34 971 626 860 info@gonzalez-partners.com Privacy Policy Coocky Policy Legal Notice Website designed by AlltimeMedia