Question
If you’re becoming a tax resident in Spain for the first year in Spain but don’t own any assets, have income, or are employed, what Spanish taxes might you be required to pay?
Answers
These are the answers of some Facebook group members:
”If you have no income, there are no income taxes. If you have some income, you may need to file, but not pay. Maybe you saw something about the wealth tax, it is different from income tax, but it also has floors and caps. There is also a report of assets abroad similar to the US FBAR and Form 8938. It looks you owe nothing. But maybe for other purposes (immigration) you need to file a nil return, that is out of my competence to answer.”
”Spain taxes world income, you have to declare all interest earned”
”The US or other income you used to qualify for legal residency here is generally taxable here in Spain. As others suggest, if you are a legal resident here, get a local Gestor or a local tax accountant and work with them to determine your Spanish tax obligations.
In general, the US/Spain Tax Treaty offsets Spanish taxes. Personally, I use a local Gestor to do my Spanish taxes, then take that info and use US tax preparer with specific expertise on Americans and Resident Aliens living abroad to do my US taxes. I think many here outside Madrid or Barcelona will find it difficult to find a tax professional competent to do taxes for both countries”
Conclusion
In conclusion, according to Spainguru Facebook group members, if you’re becoming a tax resident in Spain but have no income or assets, you might not owe any taxes. However, if you have income, even from abroad, it could be taxable in Spain.
It’s essential to declare all sources of income and seek advice from a local tax professional (like a Gestor) who understands both Spanish and potentially US tax obligations, especially for residents abroad. Spainguru can recommend tax advisors experts in US and Spanish filings.
Spain generally taxes worldwide income, and there may be specific requirements for reporting assets abroad, similar to the US FBAR.
