Tax Law

LEGAL ADVISE REGARDING TAX LAW IN SPAIN

If you emigrate to Spain or start a business there, you probably will become a taxpayer of the Spanish country.

Tax agreement between the Netherlands and Spain

If you are still taxable or living in the Netherlands or Belgium, there may be double tax imposition for example. In order to avoid this double taxation, tax agreements have been concluded within the European Union that determine in which country the tax must be paid and by whom. The tax agreement between the Netherlands and Spain determines in which situation a country can collect taxes. For personal income tax (IB) and wealth tax (VB) the country of your residence is crucial. However, if you continue to receive income from the Netherlands, you will have to pay taxes in the Netherlands. An exception to this is when you permanently settle in Spain.

Resident or non-resident in Spain

We strongly advise to make sure you are a resident or not as this fact has a big impact on your taxes.

If you stay more than 183 days per calendar year in Spain, you will be considered a tax resident of Spain. After purchasing real estate and with income in Spain, both residents and non-residents must deal with the Spanish tax authorities. Depending on whether you are a resident or a non-resident, certain taxes apply. Taxes are collected by three public administrations, at state, regional (Autonomous Community) and municipal level.

Fill in the “M-biljet” form after emigrating

After you are discharged from the Netherlands Population Register, you will receive a form M (M-biljet) from the Netherlands Tax and Customs Administration in the year following your emigration. With the M-biljet you perform the tax declaration regarding the year of emigration. In addition, the Tax and Customs Administration asks specific questions about the tax and premium liability period and the conservation assessment. The experienced advisers of OTIS can assist you.