capital gain tax in spain

Relevant Personal Income Tax Exemption in Spain

Requirements for not filing a personal income tax return in Spain if you have income from work obtained abroad. By WeLex, your Tax Advisor in Marbella!

By Welex, your multilingual economist and tax advisor in Marbella!      

Query: I am a tax resident in Spain and I get income from work. Do I have to file a personal income tax return in Spain?

Answer: Well, not always. In order not to have to present the corresponding Personal Income Tax return in Spain, it will be necessary to check if the exemption mentioned in Article 7 of the Law is fulfilled.

Having already written a lot about the taxation of non-residents in Spain and now that the 2020 Income Tax campaign is approaching, our office of economists and tax advisors in Marbella considers it relevant to write a few lines regarding one of the three exemptions mentioned in article 7 of the Spanish Income Tax Law.

Note that these exemptions are applicable to taxpayers who are tax residents in Spain

1)            Exemptions relating to compensation for dismissal of a worker in Spain.

2)            Exemptions from certain literary, artistic and scientific prizes.

3)            And those relating to income from work obtained abroad.

If you have any questions regarding taxes, please do not hesitate to contact one of the Tax Advisors in Marbella from our Welex Law and Economics office.

Exemption for income received from work carried out abroad.

According to this article of the Spanish Personal Income Tax Law, income from work actually performed abroad, which complies with the following provisions, is exempt from tax:

  1. A) If the employer is a company that is not tax resident in Spain.
  2. B) If in the country where the work is carried out, a tax identical or analogous to the tax on personal income in Spain is applied. This means that it is not a tax haven or that the country has signed an agreement with Spain to avoid international double taxation with exchange of information.
  3. C) If exemption has a maximum limit of 60,100 euros/year and be aware that for the calculation this limit must be taken into account the days that the employee has actually been abroad.

Example and conclusion: it is clear that an individual married to a tax resident in Spain becomes a tax resident in Spain as well, although when fulfils the above mentioned

requirements will not be obliged to present the corresponding income tax return for individuals in Spain.

Contact our firm of economists in Spain and Tax Advisors in Marbella now whether you are a resident or non-resident in Spain for tax purposes. We will be happy to assist you and answer any tax queries.

Although our offices are located in Marbella, Malaga, we offer our legal and fiscal services throughout Spain.