In the event you dwell in Spain on the Non-Profitable Visa (NLV), then it’s necessary to bear in mind that you just’ll nonetheless be taxed right here and you’ll have to fill out the annual earnings tax return.
The final rule is that anybody who lives in or stays in Spain for greater than 183 days a 12 months is taken into account to be a tax resident and should fill out the annual earnings tax type often known as la declaración de la renta.
The foundations of the NLV state that you’re that you’re not allowed to work whereas in Spain, both for corporations right here or overseas, however you’ll nonetheless be taxed in your passive earnings and financial savings.
EXCLUSIVE: Spain clarifies two key rules of the Non-Lucrative Visa
Though it has at all times been the case that you could’t work, there has lengthy been confusion about this, with many believing that it solely meant you couldn’t work for a Spanish firm right here, however you would nonetheless work remotely for purchasers overseas or on-line.
To clear up any confusion, the Spanish authorities has truly made it crystal clear within the authorized textual content of its new Immigration Regulation that you could’t work whereas on the NLV. This implies you possibly can’t work full cease – not even remotely. If you wish to do that, you’ll want to apply for the Digital Nomad Visa (DNV) as an alternative.
As a way to be eligible for the NLV although, you must be receiving a specific amount of passive earnings or have a specific amount of financial savings so as to have the ability to assist your self to dwell right here. That is €2,400 monthly or financial savings of €28,800 for the 12 months.
Passive earnings may very well be within the type of receiving rental funds for a property you personal overseas, pension funds, returns on investments or capital positive factors from the sale of property for instance.
As you’re thought-about to be a Spanish resident whereas on the NLV, you could nonetheless pay tax in your passive earnings.
EXPLAINED: Who has to do a tax declaration in Spain in 2025?
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Spanish legislation states that you could pay earnings tax in your worldwide earnings and capital positive factors.
You could file la declaración de la renta annually between April and July. This 12 months, marketing campaign for submitting your taxes for 2024 opened on April 2nd 2025, and can shut on June thirtieth 2025.
You possibly can both full it on-line your self by way of the Agencia Tributaria website offered you could have a Digital Certificate or a Cl@ve pin.
It’s necessary to bear in mind, nevertheless, that the method is sort of difficult, even for native Spanish audio system, so should you’re unsure what you’re doing, it’s value hiring a gestor that will help you out and file it for you.
In the event you make a mistake, it may very well be very expensive because it’s possible you can be fined for it.
A gestor will ask for info and proof together with:
- Info on dependents – husband/spouse/authorized accomplice/youngsters and NIE/Resident playing cards
- Curiosity obtained from investments or checking account overseas
- The full quantity you obtained from renting a property overseas and a duplicate of the rental settlement.
- Documentation of any property bought in Spain or overseas
- Pension funds
- In addition to any earnings / revenue you made passively from anything.
READ ALSO: How to complete Spain’s Declaración de la Renta tax return
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You may additionally be capable to offset sure quantities you paid for personal medical insurance, dental work and so on. however this can rely in your particular person circumstances, in addition to what area of Spain you reside in. Ask your gestor what you’re in a position to declare again the place you reside.
You could additionally inform Tax Company of any adjustments to your circumstances resembling change of deal with, a brand new member of the household born throughout that 12 months and so on.
The tax on financial savings contains curiosity and dividend earnings, capital positive factors made on the sale or switch of property, earnings derived from life assurance contract and pensions annuity earnings.
In 2025 these tax charges are as follows:
As much as €6,000 – 19%
€6,000 to €50,000 – 21%
€50,000 to €200,000 – 23%
€200,000 to €300,000 – 27%
€ 300,000 upwards – 30%
Pensions and hire are taxed the identical as basic earnings tax:
From €20,200 to €35,200, the tax fee is 30%
From €35,200 to €60,000, the tax fee is 37%
From €60,000 to €300,000, the tax fee is 45%
Greater than €300,000, the tax fee is 47%
READ ALSO: What’s the difference between Spain’s wealth tax and the solidarity tax?
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Bear in mind that you could be additionally must declare and pay wealth or solidarity tax on massive fortunes throughout the identical time as your earnings tax return.
Every area has barely completely different guidelines on this, so ask knowledgeable in your space.
You might be required to pay wealth tax if after making use of for regional allowances, the web result’s optimistic or if the entire gross worth of your property exceeds €2 million.
Spanish Wealth tax is a progressive tax, so the extra you could have, the upper the tax you must pay.
The final charges vary between 0.20 and three.50 p.c, relying on how a lot your property are value.
The very best charges are payable for these with a taxable base above €10,695 million.
Solidarity tax charges and allowances are the identical throughout the nation and solely applies to these with web wealth above €3 million.
Our journalists at The Native usually are not tax consultants. This text is meant to be useful and informative, however earlier than submitting your tax return or making any monetary choices, you need to at all times search the recommendation of knowledgeable accountant or gestor.
