Overview: Who Pays Tax & What Types
- Tax Residency You are considered a Spanish tax resident if you spend more than 183 days in a calendar year in Spain, or your primary economic interests are in Spain (e.g. business, investment) or close family resides there. Residents are taxed on worldwide income; non-residents are taxed only on income sourced in Spain.
- General Income Tax (IRPF) / Income from Spain For residents, Spain applies a progressive tax rate on general income, with top marginal rates up to ~ 47%depending on region. Non-residents pay a flat 24% on Spanish-source labor income, and 19% for EU/EEA citizens.
- Special Expat Regime (Beckham Law / Imposed Regime for Inbound Workers) Under certain conditions, foreign workers moving to Spain may elect to be taxed as non-residents for up to 6 years, paying 24% flat rate on Spaniard-source employment income (up to €600,000). Income above €600,000 and other types (dividends, capital gains) are taxed separately under higher rates.
- Capital Gains, Investments, Dividends & Savings Income These are taxed under the “savings income” regime, with slab rates (e.g. 19%, 21%, etc.) depending on the amount. Non-residents also pay capital gains tax and dividend tax at fixed rates on Spanish-sourced income.
- Wealth Tax / Net Assets Residents (and some non-residents owning property in Spain) may be subject to wealth tax, which is progressive and regionally variable.
- Inheritance & Gift Taxes Transfers by inheritance or donation are taxed, but rates, allowances, and reductions vary significantly between autonomous communities.
- Exit Tax / Departure Rules If a Spanish resident leaves Spain having held shares or substantial assets, an “exit tax” may apply on unrealized gains over certain thresholds.
How Dogpay Makes Dealing with Spain Taxes Easier
Many tax obligations involve payments, filings, and cross-border transfers. Here’s how Dogpay can add value:
- Transparent Payment of Spanish Tax Bills (From Abroad) If you must pay Spanish taxes (e.g. income tax, wealth tax) from an overseas account, Dogpay helps you convert and remit funds with full visibility into exchange rates and fees, ensuring the tax authority gets the exact amount.
- Handling Tax Withholding or Prepayments Some taxes require upfront withholding or prepayment. Dogpay allows you to schedule or execute those payments from foreign accounts without losing value to hidden banking margins.
- Paying for Professional / Advisory / Filing Services Hiring tax advisors, legal firms, translators, auditors—especially in cross-border scenarios—often involves paying foreign service providers. Dogpay helps you send those payments reliably and with audit trails.
- Managing Dividends, Capital Gains, Investment Income Transfers If you invest abroad or obtain dividends from Spanish companies, Dogpay helps repatriate funds or settle taxes, reducing friction and costs.
- Proof & Documentation for Compliance Tax authorities may ask for proof that you paid certain taxes, showed receipts, or transferred funds. Dogpay maintains detailed logs, receipts, and exportable records to support audits.
- Mitigating Hidden Banking / FX Leakages Standard international transfers often carry markups or intermediary fees that erode value. Dogpay minimizes these “leakages,” so more of your money goes to the intended purpose (tax payments or investments).
