The taxable items are your worldwide incomes (earnings from employments, businesses and stocks, Spanish incomes and capital gains, state retirement and other pensions and interest earned on deposit accounts in your country or offshore, etc), which must be paid in the country of residence. Although there are a few exception, such pensions received from local or central government (armed Services, Police, Firemen, teachers…) which are only taxable in the country of origin.
This matter is regulated in depth by double taxation agreements signed between Spain and different countries (Finland, United Kingdom, Republic of Ireland, etc.)
As a Spanish resident, you will need to submit a Spanish tax return and pay Spanish income tax at progressive scale rates.
In Spain, the fiscal year is the same as the calendar year and tax is paid in arrears. The income tax return campaign is from May to June and unlike other countries, individuals must complete and serve their own tax returns.
IRPF taxes are split between state and region and while the state has reduced taxes and simplified the income bands, this has not happened right across Spain. Each region sets its own tax bands and rate of income tax, so income tax liability depends on where you live.
Married couples can choose to be taxed separately or together.
Tax deductions, thresholds and allowances can vary year to year in Spain.
Please contact us if you want our company to file your tax returns by a modest fee.