Question
I have heard that on a non lucrative Spain visa, you still have to pay taxes on your income. Are they able to tax the income you are receiving if it is Social Security Disability or Veterans Disability Benefits?
Also, I have seen in another post that it says you have to have the income in your account you can’t show them bank statements and disability letters proving you have this monthly income.
Answers
These are the answers of some Facebook group members:
”As a resident under a non lucrative Spain visa, you will be a tax resident and therefore subject to declaring your worldwide income. Certain income types will not be taxed in Spain if they are covered by a Double Taxation Agreement but everything should be declared. With the way information is exchanged between countries nowadays, it is unlikely that the Spanish Tax Authorities will be unaware of any income you receive elsewhere”
”Social Security Disability and Military Disability do not get taxed that I am aware of so how would that work? Where can I find more information about this? I’m so confused”
”Moving abroad will be a huge change and beautiful new start, they need to stop making it so hard though. They want the American Dream and I just want the Pure Life so let me just come live there already”
”I hired a lawyer… 100 euro provided me with a letter with laws in Spain in regards to military retired pay, civilian government retired pay and VA comp, SSI state pension like teachers. None can be taxed in Spain. Regular social security is taxed. Rental income worldwide can be taxed. 401k TSP etc taxed. Hope that helps I arrive in September from Florida”
”I’m not sure what post you are referring to. But you can prove you receive your income monthly by providing bank statements and Letters from your pension or government agencies”
”I am referring to income tax. You will have to pay other taxes like wealth tax if you qualify”
In conclusion, according to Spainguru Facebook group members, as a resident under a non lucrative Spain visa, you’ll need to declare your worldwide income for tax purposes. While some income may be exempt, such as Social Security Disability and Veterans Disability Benefits, it’s important to consult official sources for accurate information. Bank statements and letters can be used as proof of monthly income. Understanding tax obligations and seeking guidance can help simplify the process of moving abroad.
