Spanish Tax Obligations for the 2024 Fiscal Year: A Comprehensive Guide to Income Tax, Wealth Tax, Temporary Solidarity Tax on Large Fortunes, and the Beckham Regime

Whether you are a tax resident, non-resident or you are under the Beckham Law regime, this guide provides an in-depth overview of the key tax declarations:

Under Spanish law, an individual’s tax residency status is pivotal in determining their tax obligations. According to Article 9 of the Personal Income Tax Law, an individual is considered a tax resident in Spain if they meet any of the following criteria:

• Physical Presence: Residing in Spain for more than 183 days during the calendar year. Temporary absences are included unless the taxpayer can substantiate tax residency in another country.
• Economic Interests: Having the principal center or base of economic interests directly or indirectly located in Spain.
• Family Ties: Having a non-legally separated spouse and/or minor dependent children who are habitual residents in Spain.

If you are deemed tax resident in Spain, you are subject to taxation on your worldwide income, unless you are a “Beckham Law Tax Payer”.

Tax residents must file the IRPF declaration using Form 100. The obligation arises under the following circumstances:

Employment Income: Exceeding €22,000 annually from a single payer, or over €15,000 when income is received from multiple payers and the amount from the second and subsequent payers exceeds €1,500.

Capital Gains, dividends, interest and Real Estate Income: Exceeding €1,600 annually.

Self-employed individuals are required to file regardless of income level.

The IRPF declaration encompasses all worldwide income, including:

• Employment and self-employment income.
• Investment returns and dividends.
• Rental income.
• Capital gains.
• Imputed income and other taxable income.

The “Beckham Law” refers to the special tax regime under Article 93 of the LIRPF, by which Beckham Law taxpayers report their worldwide salaries and Spanish income source. Any other foreign income it is not taxable in Spain.

A Spanish income source usually refers to dividends and capital gains from Spanish shares, income from Spanish Real Estate, interest from Spanish bond etc., without offsetting any expenses.

The tax rate is 24% up to EUR 600,000 and 47% for above EUR 600,000 taxable incomes.

Beckham Law taxpayers can apply only deductions for allowed NGOs.

The filing period aligns with the IRPF, from April 2 to June 30, 2025. For direct debit payments, the deadline is June 25, 2025.

Tax residents and non-residents are obliged to file the Wealth Tax declaration using Form 714 if:

Tax Residents:

• Their worldwide net assets exceed €2,000,000.
• The resulting tax liability, after applicable deductions and allowances, is positive.

Note: The minimum exemption threshold is generally €700,000, but depends on the region the taxpayer lives, with an additional €300,000 exemption for the primary residence.

Non- Residents and Beckham Law taxpayers:

• The net value of their Spanish assets and rights exceeds EUR 700,000.
• The filing period aligns with the IRPF, from April 2 to June 30, 2025. For direct debit payments, the deadline is June 25, 2025.

The declaration must include all assets and rights less debts and liabilities held as of December 31, 2024, such as:

• Real estate properties.
• Bank accounts and deposits.
• Investments in securities and shares.
• Shares in private companies.
• Economical Rights.
• Credits
• Luxury items (e.g., vehicles, yachts, jewellery).
• Life insurance policies.
• Liabilities and debts.

The valuation depends on the asset category. Generally, the valuations should adhere to the market value at December 31st or purchase price.

This tax applies to individuals with net assets exceeding €3,000,000 as of December 31, 2024. It is complementary to the Wealth Tax and mostly applicable to regions where the Region has no Wealth Tax.

Tax residents are subject to taxation on their worldwide income and global assets, whereas non-residents are taxed solely on income sourced within Spain.

Tax residents must file the IRPF declaration (Form 100) if they meet any of the following condition:

• Gross salaries exceeding €22,000 annually from a single payer.
• Gross salary exceeding €15,000 annually from multiple payers, with the amount from the second and subsequent payers exceeding €1,500 annually or not being subject to Spanish payroll tax.
• Dividends and interest and capital gains exceeding €1,600 annually.
  Real Estate income, grants, and other income exceeding €1,000 annually.
• Self-employed individuals are required to file regardless of income level.

The filing period for the 2024 fiscal year commences on April 2, 2025, and concludes on June 30, 202. For taxpayers opting for direct debit payments, the deadline is June 25, 2025

Taxpayers are obligated to file the Wealth Tax declaration (Form 714) if:

1. Their global net assets exceed €2,000,000.
2. The resulting tax liability, after applicable deductions and allowances, is positive.

The Wealth Tax applies to the total value of net wealth owned as of December 31, 2024, including:

• Real estate properties.
• Bank accounts and deposits.
• Investments in securities and shares.
• Luxury items (e.g., vehicles, yachts, jewellery)
• Life insurance policies.

Valuations should adhere to the highest of market value, cadastral value, or assessed value by the tax authorities.

The Temporary Solidarity Tax on Large Fortunes (Form 718) is a complementary tax introduced to ensure equitable taxation among high-net-worth individuals.

• Obligation to file Individuals with net assets exceeding €3,000,000 as of December 31, 2024.
• Filing period July 1 to July 31, 2025.
• Tax rates Progressive rates ranging from 1.7% to 3.5%, depending on the net wealth amount.

The “Beckham Law” refers to the special tax regime under Article 93 of the LIRPF, designed to attract foreign talent by offering favorable tax conditions.

It applies to taxpayers who have not being tax resident in Spain during the five years preceding relocation.

Their relocating to Spain should be to become an employee in a Spanish company or working remotely from Spain, because of acquiring the status of director of a company or start an entrepreneurial project in Spain.

Beckham Law taxpayers apply a flat rate of 24% on Global salaries and Spanish-sourced income up to €600,000 annually.

Foreign income and assets are not taxable in Spain under the special regime.

Our firm offers comprehensive services to ensure compliance with Spanish tax obligations:

• Tax Residency Assessment Determining your tax residency status and its implications.
• Tax Return Preparation and Filing Assisting with the preparation and submission of IRPF, Wealth Tax, and Solidarity Tax returns.
• Beckham Law Application Evaluating eligibility and managing the application process for the special expatriate tax regime.
• Tax Planning and Optimization Providing strategic advice to optimize your tax position and ensure compliance with Spanish tax laws.

Should you require personalized assistance or further information, please do not hesitate to связаться с нами.