How do I declare income earned in Spain if I am a non-resident?
If you are a non-resident and receive income in Spain (e.g., rental income, investment income, or income from work performed in Spain), you must use specific forms. For example, Form 210 is the self-assessment form for Non-Resident Income Tax (IRNR) for income earned without a permanent establishment.
At Xolo, we can help you complete this form if needed. Contact us at ayuda@xolo.io for more information.
What should I report if I am included in the special regime for expatriates (Beckham Law)?
If you qualify for the special regime:
- You are taxed as a non-resident in some respects, even though you are a tax resident.
- You pay taxes at the fixed rate of the regime (e.g., 24% up to a certain limit) on Spanish employment income.
- You are not required to declare foreign assets using Form 720.
- For annual filing, you must use Form 151 under this regime.
You will declare your income subject to the regime, but general deductions available to regular residents do not apply.
What about assets abroad that are jointly owned under the Beckham Law regime?
One advantage of the special regime is that you are not required to file Form 720 for foreign assets, provided you remain in the regime.
However, this exemption has nuances: if you fail to meet the regime requirements, you may lose its benefits and become subject to the standard resident tax regime, which requires declaring all assets, including foreign holdings.