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Tax Advisors for Expats in Torrevieja

Spain's tax system is comprehensive and — for expats — significantly different from what most northern Europeans are used to. Mistakes are common, penalties are high, and the interaction between Spanish law and your home country's system (e.g. the UK-Spain double tax treaty) is genuinely complex. A qualified asesor fiscal pays for themselves within the first year for most expats.

Am I a Spanish tax resident?

You are a Spanish tax resident if you spend more than 183 days per year in Spain or your primary centre of economic interests is in Spain. Spanish tax residents must declare and pay tax on their worldwide income — not just Spanish income. This is the biggest surprise for many expats.

If you are in Spain fewer than 183 days per year, you are a non-resident for tax purposes and pay a different, simpler tax.

Income Tax (IRPF) — Spanish resident rates

Taxable incomeRate
Up to €12,45019%
€12,451 – €20,20024%
€20,201 – €35,20030%
€35,201 – €60,00037%
€60,001 – €300,00045%
Over €300,00047%
Modelo 720 — Foreign Asset Declaration: If you are a Spanish tax resident with foreign assets exceeding €50,000 in any category (bank accounts, property, investments), you must file Modelo 720 each January. Failure to file carries severe penalties — minimum €10,000 per asset category. This catches many expats completely off guard. Your UK ISAs, pension pots, bank accounts and investments all count.

Non-Resident Tax (Modelo 210)

If you own property in Torrevieja but are NOT a Spanish tax resident, you pay Modelo 210 annually. For properties not rented out: a deemed income of 1.1–2% of the cadastral value is taxed at 19% (EU residents) or 24% (non-EU). For an average Torrevieja apartment, this is typically €100–400/year.

For properties that are rented out: EU residents pay 19% on actual net rental profit. Non-EU residents pay 24% on gross income with no expense deduction.

UK-Spain Double Tax Treaty — key points

  • UK state pension: Taxed in the UK, not Spain, but must be declared on the Spanish return
  • UK occupational/private pension: Generally taxed in Spain as a resident
  • UK rental income: Taxed in both countries, but UK tax is credited against Spanish liability
  • Investment income: Generally taxed in Spain as a Spanish resident

Common mistakes that advisors catch

  • Not filing Modelo 720 — extremely common and extremely expensive
  • Thinking UK pension is not taxable in Spain — it usually is for residents
  • Missing the non-resident tax filing for property owners
  • Not declaring worldwide income — Spain's automatic exchange with HMRC means this gets caught

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