Tax Obligations in Spain: What You Actually Owe as an Expat
Tax Obligations for Digital Nomads in Spain: What You Actually Owe
Cut through the confusion around Spanish taxes for remote workers. Tax residency rules, deductions, filing requirements, and how to stay compliant without overpaying.
Introduction
Spanish taxes for digital nomads are confusing—and the internet is full of contradictory advice. Are you a tax resident? Do you owe Spanish income tax? What about your home country? Can you claim deductions?
This guide provides clarity on your actual tax obligations as a digital nomad in Spain, based on current law and practical experience from accountants who work with remote workers.
Are You a Spanish Tax Resident?
This is the critical question. Spanish tax residency is determined by:
The 183-Day Rule
If you spend more than 183 days in Spain during a calendar year, you're automatically a tax resident.
How it's calculated:
- January 1 - December 31 (not rolling 12 months)
- Includes partial days
- Count days in Spain even if you travel within the country
The "Center of Economic Interest" Test
Even if you spend less than 183 days in Spain, you may still be a tax resident if:
- Your primary income source is Spain-based
- Your spouse and dependents live in Spain
- Your business operations are centered in Spain
What Tax Residency Means
Tax residents:
- Pay Spanish income tax on worldwide income
- File annual Spanish tax returns
- May owe Spanish social security (autonomo)
Non-residents:
- Only pay tax on Spanish-sourced income
- Different tax rates (often higher for some income types)
- Simplified filing requirements
Income Tax Rates for Digital Nomads
For Tax Residents (Worldwide Income)
Spanish income tax is progressive:
| Income (€) | Rate |
|---|---|
| 0 - 12,450 | 19% |
| 12,450 - 20,200 | 24% |
| 20,200 - 35,200 | 30% |
| 35,200 - 60,000 | 37% |
| 60,000 - 300,000 | 45% |
| 300,000+ | 47% |
Note: Regional governments add 0.5-3% to these rates
For Non-Residents
Non-resident tax rates depend on income source:
- Employment income: 24% flat rate
- Freelance/business income: 24% flat rate
- Investment income: 19%
- Rental income: 24%
The Beckham Law (Special Expat Regime)
Digital nomads on certain visas may qualify for the Beckham Law, allowing you to be taxed as a non-resident for up to 6 years—even if you're a tax resident.
Benefits:
- 24% flat tax on Spanish income up to €600,000
- Foreign income tax-free
- No wealth tax
- Simplified filing
Eligibility:
- Must not have been a Spanish tax resident in the prior 10 years
- Must move to Spain for work purposes
- Must apply within 6 months of arrival
What Income Do You Owe Tax On?
As a Tax Resident
- Spanish employment income: ✓ Taxed
- Foreign employment income: ✓ Taxed
- Freelance income (any country): ✓ Taxed
- Investment income (dividends, capital gains): ✓ Taxed
- Rental income (any country): ✓ Taxed
As a Non-Resident
- Spanish employment income: ✓ Taxed
- Foreign employment income: ✗ Not taxed in Spain
- Freelance income (Spanish clients): ✓ Taxed
- Freelance income (foreign clients): ✗ Not taxed in Spain
- Spanish property income: ✓ Taxed
Double Taxation: How to Avoid Paying Twice
Spain has tax treaties with 90+ countries, including the US, UK, Canada, and Australia.
How it works:
- You pay tax in Spain on your income
- You claim a foreign tax credit in your home country
- You only pay the difference (if home country rate is higher)
Example:
- Earn $80,000 from US company
- Pay €18,000 in Spanish taxes (as a resident)
- US tax on same income would be $20,000
- You owe $2,000 to the US (the difference)
- Total tax: $20,000 (not $38,000)
Digital Nomad Visa Tax Implications
The Spanish digital nomad visa has specific tax benefits:
- First 4 years: Reduced income tax rates (may qualify for Beckham Law)
- No requirement to register as autonomo immediately
- Simplified tax filing in first year
However, if you stay beyond 183 days, you're still a tax resident with worldwide income reporting.
Social Security (Autonomo) - Do You Need It?
If you're self-employed in Spain, you may need to register as autonomo:
Required if:
- You have Spanish clients
- You operate a Spanish business
- You're a freelancer and tax resident
Not required if:
- All clients are outside Spain
- You work for a foreign employer
- You're on a nomad visa with only foreign income
Cost: €294-545/month (includes healthcare)
💡 Pro Tip: Many digital nomads on short-term stays (under 183 days) avoid autonomo by maintaining clients outside Spain.
Deductions You Can Claim
As a Tax Resident
- Coworking space costs
- Internet and utilities (proportional to work use)
- Professional equipment (laptop, phone)
- Travel for business purposes
- Professional development and courses
- Health insurance premiums
As an Autonomo
- Rent (portion used for work)
- All business expenses
- Professional services (accountant, legal)
- Marketing and advertising
- Depreciation of equipment
Average deductions: 30-40% of income
Filing Requirements & Deadlines
Annual Tax Return (IRPF)
- Deadline: April 1 - June 30
- Who must file: All tax residents earning over €22,000 (or €14,000 from multiple sources)
- Where: Online via Agencia Tributaria website
Quarterly Declarations (Modelo 130)
- Deadline: April 20, July 20, October 20, January 20
- Who must file: Autonomos and self-employed
- What: Advance payments on estimated annual tax
VAT Returns (If Applicable)
- Deadline: Quarterly
- Who must file: Anyone charging VAT to Spanish clients
- Rate: 21% standard VAT
How to Stay Compliant
Step 1: Determine Your Status
- Count your days in Spain
- Assess where your income comes from
- Determine if you're a tax resident
Step 2: Register (If Required)
- Get a NIE (foreigner ID number)
- Register with Agencia Tributaria
- Register as autonomo (if self-employed with Spanish income)
Step 3: Track Everything
- Keep records of days in/out of Spain
- Save all receipts for deductible expenses
- Document income sources and amounts
Step 4: File on Time
- Quarterly autonomo payments
- Annual tax return (June deadline)
- Penalty for late filing: 20% + interest
Step 5: Hire an Accountant
Spanish tax law is complex. A gestor or tax accountant costs €500-1,500/year but saves you from costly mistakes.
Common Mistakes to Avoid
- Assuming you're not a tax resident - If you're in Spain over 183 days, you are
- Not filing because you paid tax elsewhere - You still must file and claim the foreign tax credit
- Ignoring autonomo requirements - Fines for non-registration are steep
- Mixing personal and business expenses - Keep separate accounts
- Missing deadlines - Penalties start at 20% and increase with time
Conclusion
Spanish taxes for digital nomads boil down to one question: Are you a tax resident?
- Under 183 days: You're likely not a resident. Pay tax only on Spanish income.
- Over 183 days: You're a resident. Pay tax on worldwide income, but claim foreign tax credits.
The key is tracking your time, keeping good records, and working with a Spanish tax professional. With proper planning, you can stay compliant without overpaying.
Resources
- Agencia Tributaria - Spanish tax authority
- Beckham Law Info
- Find a gestor: Recommended to search locally or via expat Facebook groups
Tax laws change. Consult a Spanish tax professional for personalized advice.
