Question
Can pre-tax residency savings exempt Spain non lucrative visa renewal taxes, and does passive income like rentals or stocks incur taxes? Also, does receiving a gift affect taxation in this case?
Answers
These are the answers of some Facebook group members:
”Income is taxable, with a few exceptions. Savings are not taxable. You’ll be required to fill out a tax form every spring, and pay tax on your worldwide income for the previous year, assuming you were a Spanish resident in the previous year”
”Income is income. And Spain it has to be declared no matter what country it came from. Legal residency comes with a lot of things, including paying taxes”
”Savings are not taxed. All other worldwide income is including passive income, dividends, and interest. You don’t pay your taxes when you renew your visa. You pay your taxes at the normal tax filing deadline in any year that your Tax resident of Spain”
”The Immigration office just need to see you have sufficent funds to renew. Generally they don’t care about your taxes and just need to see a Bank Certificate with a current balance of 28800€. Plus 3-6 months bank statements to check you have not just borrowed money a few days before to renew”
”I think gifts are taxed in Spain in a similar way to inheritance”
”You don’t pay taxes on savings anyway. You would owe capital gains taxes if it were investments that made gains. Rental income is taxed differently for most expats due to the tax treaties in place. Gifts are a different category as well. Best bet is to consult an accountant or tax attorney and describe to them your various income types and amounts, and they will advise you on what you owe”
”Residency ie. Immigration office doesn’t care about taxes. Tax office deals with taxes, owed or not. All immigration cares is you have requirements to meet the renewal obligations, ie. The passive income required. And or savings in bank”
Conclusion
In conclusion, according to Spainguru Facebook group members, Spain non lucrative visa renewal requirements typically focus on proving sufficient funds or passive income, not specifically on tax obligations.
While savings are generally not taxed, worldwide income, including passive income like rentals or stocks, is taxable in Spain. Gifts might be subject to taxation, resembling inheritance taxes. Consulting a tax professional to assess specific income sources and amounts is recommended to ensure compliance with Spanish tax laws during residency renewals.
