Tax Guide for Expats
No matter where you live, taxes are not a fun exercise. Add the “living in a foreign country” factor, and it can be a real headache to figure out the process. In this section, however, we have tried to simplify the process as much as possible, as well as recommend some good people you can seek out for help with filing taxes in Barcelona.
Spain was once considered a bit of a tax haven. This is much less the case now, although there is still a strong under-the-table system despite increased policing and potentially heavy fines.
Income tax sits between 24% and 49%, depending on which of the four tax brackets you fall. The Spanish government is kind to people with children and family allowances fit into the first tax bracket (with a zero tax rate). Expats can access a special income tax bracket, designed to make Spain an attractive option for skilled foreign workers. You can read more about this in our Income Tax section.
There are other, incidental taxes in Spain. Some of these can be incredibly complicated, particularly regarding inheritance tax and deductions but the Spanish government is working hard to streamline these issues.
These incidental taxes deal mainly with daily goods and property and are detailed in the Other Taxes section of this guide.
Spain has double taxation agreements with most of the ex-pat origin countries and the Tax Office offers a computerized refund system (in English) that ensures you are the first to get your refund.
