Residents pay tax on worldwide income (19%-47%). Non-residents pay only on Spanish income (flat 19%-24%). Status determines everything.
Resident Tax
Who: Anyone meeting 183-day, economic interests, or family tests.
Taxed on: Worldwide income.
Rates: 19% to 47% progressive.
Obligations:
- Annual return (Renta)
- Modelo 720 foreign asset declaration
- Wealth tax
- Quarterly payments if self-employed
Non-Resident Tax
Who: Non-residents with Spanish income or assets.
Taxed on: Spanish-source income only.
Rates:
- Employment: 24% (19% EU residents)
- Rental: 24% (19% EU)
- Property gains: 19%
- Dividends/interest: 19%
Obligations: File for Spanish income only. No Modelo 720. Wealth tax on Spanish assets only.
Why It Matters
Plan your residency before you move. Wrong timing creates tax problems.