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Local Spain
20 hours ago
- Business
- Local Spain
What Non-Lucrative Visa holders should know about Spain's annual tax declaration
Taxes For Members If you live in Spain on the Non-Lucrative Visa (NLV), then it's important to be aware that you'll still be taxed here and you will have to fill out the annual income tax return. The general rule is that anyone who lives in or stays in Spain for more than 183 days a year is considered to be a tax resident and must fill out the annual income tax form known as la declaración de la renta. The rules of the NLV state that you are that you are not allowed to work while in Spain, either for companies here or abroad, but you will still be taxed on your passive income and savings. Even though it has always been the case that you can't work, there has long been confusion about this, with many believing that it only meant you couldn't work for a Spanish company here, but you could still work remotely for clients abroad or online. To clear up any confusion, the Spanish government has actually made it crystal clear in the legal text of its new Immigration Law that you can't work while on the NLV. This means you can't work full stop – not even remotely. If you want to do this, you need to apply for the Digital Nomad Visa (DNV) instead. In order to be eligible for the NLV though, you have to be receiving a certain amount of passive income or have a certain amount of savings in order to be able to support yourself to live here. This is €2,400 per month or savings of €28,800 for the year. Passive income could be in the form of receiving rental payments for a property you own abroad, pension payments, returns on investments or capital gains from the sale of assets for example. As you are considered to be a Spanish resident while on the NLV, you must still pay tax on your passive income. Spanish law states that you must pay income tax on your worldwide income and capital gains. You must file la declaración de la renta each year between April and July. This year, campaign for filing your taxes for 2024 opened on April 2nd 2025, and will close on June 30th 2025. You can either complete it online yourself via the Agencia Tributaria website provided you have a Digital Certificate or a Cl@ve pin. It's important to keep in mind, however, that the process is quite complicated, even for native Spanish speakers, so if you're not sure what you're doing, it's worth hiring a gestor to help you out and file it for you. If you make a mistake, it could be very costly as it's likely you will be fined for it. A gestor will ask for information and evidence including: Information on dependents - husband/wife/legal partner/children and NIE/Resident cards Interest received from investments or bank account abroad The total amount you received from renting a property abroad and a copy of the rental agreement. Documentation of any property sold in Spain or abroad Pension payments As well as any income / profit you made passively from anything else. You may also be able to offset certain amounts you paid for private health insurance, dental work etc. but this will depend on your individual circumstances, as well as what region of Spain you live in. Ask your gestor what you're able to claim back where you live. You must also inform Tax Agency of any changes to your circumstances such as change of address, a new member of the family born during that year etc. The tax on savings includes interest and dividend income, capital gains made on the sale or transfer of assets, income derived from life assurance contract and pensions annuity income. In 2025 these tax rates are as follows: Up to €6,000 - 19% €6,000 to €50,000 – 21% €50,000 to €200,000 – 23% €200,000 to €300,000 – 27% € 300,000 upwards – 30% Pensions and rent are taxed the same as general income tax: From €20,200 to €35,200, the tax rate is 30% From €35,200 to €60,000, the tax rate is 37% From €60,000 to €300,000, the tax rate is 45% More than €300,000, the tax rate is 47% Be aware that you may also need to declare and pay wealth or solidarity tax on large fortunes during the same time as your income tax return. Each region has slightly different rules on this, so ask a professional in your area. You are required to pay wealth tax if after applying for regional allowances, the net result is positive or if the total gross value of your assets exceeds €2 million. Spanish Wealth tax is a progressive tax, so the more you have, the higher the tax you have to pay. The general rates range between 0.20 and 3.50 percent, depending on how much your assets are worth. The highest rates are payable for those with a taxable base above €10,695 million. Solidarity tax rates and allowances are the same across the country and only applies to those with net wealth above €3 million.
Coin Geek
a day ago
- Business
- Coin Geek
Spain tracks digital asset holdings for taxes under proposed law
Homepage > News > Business > Spain tracks digital asset holdings for taxes under proposed law Getting your Trinity Audio player ready... Spain is cracking down on tax evaders in the digital asset sector with a proposed law that requires exchanges to share user data with tax authorities. The proposal was submitted to Congress by the Council of Ministers, reports local outlet El Economista. It requires virtual asset service providers to report users' transactions and account balances to the tax authorities, enabling the tax agency—known as the Agencia Tributaria—to clamp down on tax cheats. The proposed bill aligns Spain's tax code with the 8th amendment to the Directive on Administrative Cooperation (DAC8). This EU-wide directive that mandates VASPs to report user transactions to EU tax authorities. It covers VASPs based in the region and offshore exchanges with EU users. By aligning with DAC8, Spain's proposed law will enable the Agencia Tributaria to receive data from other EU countries on digital assets held by Spanish investors. 'This will entail greater control over assets of this type located abroad and over balances,' the Ministry of Finance said in a statement. Beyond access to data, the proposal would enable the government to seize digital assets held by tax evaders as payment for arrears. According to Spanish digital asset lawyer Cris Carrascosa, the Finance Ministry consulted some industry stakeholders while drafting the bill. '…I trust that public-private collaboration in drafting regulations that affect evolving, yet highly technical, issues, such as innovation, is the only way to pass fair, sensible, and effective laws,' he stated on X. If legislators adopt the proposal, it would take effect in January 2026. Spain isn't alone in implementing the EU's DAC8. On Thursday, Slovakian lawmakers approved Bill No. 706, which aligns the country's tax regulations with the European framework. Providers who fail to report their users' data as required by the new law will face a €30,000 ($34,585) fine, while operators will face a €15,000 ($17,292) penalty. Kenya's digital asset sector decries proposed taxes In Kenya, stakeholders in the digital asset industry are waging a war against proposed taxes that they say could derail adoption. The East African nation is among the leading digital asset hubs on the continent, but regulators are still playing catch-up, including with taxation. The government proposed a 1.5% digital asset tax on every transaction two years ago. The uproar from the sector has kept the tax at bay, but in recent months, legislators have resumed debate on the proposals. The East African nation is among the leading digital asset hubs on the continent, but regulators are still playing catch-up, including with taxation. The government proposed a 1.5% digital asset tax on every transaction two years ago. The uproar from the sector has kept the tax at bay, but in recent months, legislators have resumed debate on the proposals. Industry stakeholders have been pushing back against the tax. Chebet Kipingor, the business operations manager at Busha exchange—one of only two licensed exchanges in Nigeria—says in one news outlet that the tax could drive startups to other friendlier jurisdictions and blow Kenya's fintech leadership. The Kenya Revenue Authority has previously stated that it collected $78 million in taxes from the sector in the 2023-24 financial year. The authority has set a target of $466 million, which would require an aggressive tax base expansion. Chebet says that while such an expansion is valid, 'the policy's current form could deliver unintended consequences for Kenya and financial inclusion efforts across the continent.' Other stakeholders have called for a more nuanced approach that accounts for digital asset complexity. Allan Kakai, who heads the local Virtual Assets Chamber of Commerce, says the best approach would be to tax on- and off-ramping transactions. Under the proposed framework, even transferring digital assets from one wallet to another would attract taxation. 'Stablecoins are utility assets. Bitcoin is speculative. Treating them the same makes no sense,' Kakai stated. The digital asset community has reiterated that it's not against regulations and taxation; all it seeks is a balanced approach that doesn't punish innovators. 'With the right regulations, those that promote innovation, attract investment, and expand economic opportunity, Kenya can lead the continent. Positive policies will unlock job creation, increase government revenue, and bring more traditional finance players into the space,' added Kakai. The tax framework could play a key role in whether Kenyan financial institutions support digital assets, with overly stringent requirements likely to put them off. According to the country's central bank, over 30% of the country's lenders are ready to integrate digital assets. Watch: Here's how Triple Entry Accounting guarantees trust in accounting
Local Spain
31-03-2025
- Business
- Local Spain
EXPLAINED: Who has to do a tax declaration in Spain in 2025?
The Spanish tax season is almost upon us, beginning on April 2nd and ending on June 30th, meaning that you have to file your income taxes between these dates. Personal income tax is known as IRPF in Spain (Impuesto sobre la Renta de las Personas Físicas) and the annual income tax return is called la declaración de la renta. This year you must report any income you earned during the previous financial year, which was 2024. The Spanish tax year is the same as the calendar year, unlike in the UK for example where it runs from April to April. The general rule is that anyone who lives in or stays in Spain for more than 183 days a year is considered to be a tax resident and must fill out the annual income tax form. 'If you stay in Spain for more than 183 days during the calendar year," you are usually considered a tax resident here states Spain's Tax Agency (Agencia Tributaria). If you have a complicated situation where you split your time between two or more countries, or if you have property or a business in other countries, there are international tax treaties, which state where you should be considered a resident and where you need to declare your income for tax purposes. In this case it would be best to hire a tax expert to guide you. Those who are classed as a tax resident in Spain will be subject to pay tax on their worldwide income, which includes income from rental properties overseas for example. Article 96 of the Personal Income Tax (IRPF) regulations establishes that all taxpayers must file a tax return, but there are certain exceptions. Generally, if you are resident in Spain you will have to complete la declaración de la renta if you meet the following requirements: You received more than €22,000 annually from a single employer. You had multiple employers, but your income from the second or subsequent ones exceeded €1,500 annually. You earned more than €15,876 from two or more employers, if the second employer paid you more than €1,500 annually. Individuals with capital income and capital gains subject to withholding or advance payment exceeding €1,600 per year. Autonómos or self-employed workers who were registered as such at any point in 2024. Even if they made a loss. Taxpayers with real estate income, non-withholding capital gains from Treasury Bills, subsidies for the purchase of social housing, and other public aid exceeding €1,000 per year. Those who received the Ingreso Mínimo Vital (IMV) or Minimum Vital Income in 2024, as well as members of their household. Those who want to request refunds such as deductions for maternity, large families, or disability, as well as deductions for withholdings and instalment payments. Taxpayers who applied for the transitional deduction regime for investment in housing, for international double taxation, or those who have made contributions to protected assets of people with disabilities, pension plans, dependency insurance, among other social security instruments. Those who exclusively earned gross income from exclusively from capital or economic activities, as well as capital gains exceeding €1,000 per year and capital losses of more than €500.
