Relocating to Spain is a dream for many. But if you’re planning your move in 2026, there’s one crucial step you shouldn’t overlook: your fiscal planning. Spain’s tax system is complex and can significantly impact your income, property, and investments—especially if you’re a non-resident or moving from a country with a different tax framework.
Whether you’re retiring, working remotely, or investing in Spanish property, a solid tax roadmap will save you stress, money, and time.
Why Tax Planning Before Moving to Spain Matters
Spain taxes worldwide income for residents, and only Spanish-sourced income for non-residents. But the moment you cross the 183-day threshold, your tax obligations change dramatically.
Without proper planning, you might:
- Trigger unexpected tax residency
- Pay double tax on income or pensions
- Miss out on deductions or allowances
- Be liable for wealth or inheritance taxes
Key Tax Points for Expats in 2026
Here’s what to consider before moving:
1. When Do You Become a Tax Resident?
You’re considered a Spanish tax resident if:
- You spend more than 183 days in Spain per calendar year
- Your main economic interests or family are in Spain
Once resident, you must declare and pay taxes on global income, including:
- Foreign salaries
- Rental income
- Dividends, pensions, or capital gains
2. Dual Taxation Agreements
Spain has tax treaties with many countries (including the UK, USA, Germany, etc.) to avoid double taxation. However, the protection is not automatic—you must file the proper documentation to benefit.
A tax advisor can help you determine:
- Which country has taxing rights
- How to credit foreign taxes
- If your foreign pension is taxable in Spain
3. Wealth and Property Taxes
Even if you don’t live in Spain yet, owning property here may subject you to:
- Non-Resident Income Tax (IRNR) on rental or potential rental income
- Wealth Tax on assets over certain thresholds (varies by region)
- Capital Gains Tax when selling a property
Regions like the Comunidad Valenciana or Andalucía have specific rates—regional planning is key.
4. Plan for Income Structuring
If you earn income from abroad (e.g. dividends, remote work, rental), consider how to:
- Time your move to avoid being resident in two countries in the same fiscal year
- Restructure your income or assets for better tax treatment
- Benefit from deductions, exemptions, or flat rates
5. Declare Overseas Assets – Modelo 720
If you become a resident, you’re required to declare foreign assets over €50,000 (bank accounts, investments, property) via Modelo 720. Late or incorrect filing can lead to severe penalties.
This form is informational, but critical for compliance and future audits.
Timeline: When to Start Planning
12–6 months before your move:
- Book a consultation with a Spanish tax advisor
- Review your home country’s exit tax obligations
- Study your country’s tax treaty with Spain
6–3 months before:
- Restructure accounts and income if needed
- Plan the timing of your arrival carefully
1 month before:
- Gather all documentation (pensions, income sources, assets)
- Ensure you have health insurance and proof of income for visa/residency purposes
Why Work with Fuster & Associates?
At Fuster & Associates, we specialise in guiding international clients through safe and efficient relocation to Spain, including:
- Pre-move tax roadmap design
- Advice on IRNR, income tax, and Modelo 720
- Guidance on choosing the right visa/residency path
- Property and inheritance tax planning
We combine over 25 years of experience with multilingual legal and tax teams to provide seamless support across Spain’s key regions.
We want to help you navigate all the legal complexities that come to buying or selling a house in Spain, but this article is legal information and should not be seen as legal advice.
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