Income and gains in the year you arrive

Terms used

• Beckham — The Beckham law is Spain's special tax regime for some newcomers who move to Spain for work.
• Modelo 100 — Modelo 100 is the Spanish personal income tax return, filed once a year for the previous calendar year.
• Modelo 149 — Modelo 149 is the form you file to apply for the special expat tax regime.
• Beckham regime — The Beckham regime is the special tax regime for workers who move to Spain, taxing them like non-residents for several years.

Key rules

• Worldwide income: Once you are a Spanish resident, income from before you arrived in the same year is still taxed in Spain.
• Salary exemption: The exemption for work abroad does not cover work done entirely abroad before you moved.
• Double tax relief: Foreign tax paid can be credited, capped at the Spanish tax on the same income.
• Special expat regime: If you qualify, foreign gains and investment income are generally outside Spanish tax, but you must apply within six months.
• Return: The whole arrival year goes on Modelo 100, filed in the campaign that follows.

The short answer

If you become a Spanish tax resident, Spain taxes your worldwide income for the whole calendar year. That includes what you earned abroad before you arrived. There is no split by days of residence. The exception is the special expat regime, covered below.

Salary earned abroad before you arrived

Salary for work done abroad before the move goes into your Spanish return. You convert it to euros and it is added to your general taxable income.

The exemption for work done abroad does not help you here. It covers work done for a foreign entity while you are in Spain, not work done entirely abroad before you moved.

Check the tax treaty between Spain and the country where you worked. Under many treaties, the country where the work was done has the right to tax it. In that case the income can be exempt in Spain or you get credit for the tax paid. If Spain taxes it, you can claim a foreign tax credit for tax already paid abroad.

Dividends, interest and rental income

Dividends and interest received before you arrived, in the same year, are taxed in Spain. They go into the savings part of your return. Rental income goes into the general part.

Foreign tax you paid on that income can be claimed as a deduction for double taxation. It is capped at the Spanish tax due on that same income. A treaty may limit how much foreign withholding tax qualifies.

Which return covers it

Everything goes on the personal income tax return, Modelo 100. You file it in the campaign after the calendar year ends. The campaign normally runs from early April to 30 June, with an earlier cut-off of about 25 June if you pay by direct debit. The Ministry of Finance sets the exact dates each year, so check them with the tax agency.

The timeline below shows the steps in order.

Does the special expat regime change this?

Yes, it can. Under the special regime for workers who move to Spain (often called the Beckham regime), you are taxed like a non-resident. That means only on Spanish-source income. Foreign capital gains and foreign investment income are generally outside Spanish tax.

Key conditions:

• You must not have been a Spanish tax resident in the previous five years.
• You need a job in Spain, a director role or a qualifying activity.
• You apply with Modelo 149 within six months of starting work or registering with Social Security.
• It applies for the year of arrival and the next five years.
• Spanish-source income is taxed at 24% up to €600,000 and 47% above that.

Some limits remain. Gains on Spanish property stay taxable. Some foreign income linked to work you do in Spain is also taxable.

If you do not qualify, or do not apply in time, the normal worldwide rules above apply to the full arrival year.

Choosing your move date

Your move date changes how much of a year is taxed. The comparison below sets out moving before year-end, after it, or splitting the years. If you have already moved and sold assets this year, read the "What if" section below.

Moving before year-end, after it, or splitting the years

Compares three timing choices for a move to Spain: arriving early in the year, arriving late or in the next year, and spreading your income events across both years. Shows what to ask a tax adviser and which facts change the answer.

The short answer

The date you arrive decides which country taxes your income events in the move year, and Spain does not split the year. Settle the date for your biggest taxable event first, then pick the option below.

What the calendar-year rule means for your arrival year

If you are resident in Spain for a year, Spain taxes your worldwide income for the whole of that year, including what you earned before you arrived. You count as resident if you spend more than 183 days in Spain in that calendar year, or if your main economic interests are there. Short trips abroad still count as days in Spain unless you can prove tax residence in another country. Spain may also presume you are resident if your spouse and young children live there.

So arriving in October usually keeps you under the day count, while arriving in March almost certainly does not.

The three options side by side

Spain has no part-year split, so "splitting the years" means placing different events in different calendar years. It does not mean being half resident.

Leave out of the table any event you do not have. Fill in the rest with your adviser's answers.

What to gather before you choose

Note down four facts. They are the inputs your adviser needs:

• Your target move date, and whether it is fixed, a rough window or undecided.
• The dates of any taxable events in your first tax year in Spain, such as a sale, a withdrawal or share options.
• The date you plan to sell a home or other asset, if you plan to.
• Your origin country, since its exit tax and treaty with Spain change the result.

What to ask a tax adviser

• Will the move date make you resident for the whole year, or can you stay under the day count?
• Could your economic interests make you resident anyway?
• Does your origin country charge exit tax on shares or large unrealised gains?
• Which country taxes the home sale, and at what point?
• Which country taxes a pension withdrawal or lump sum under the treaty?
• Which country wins the tie-breaker if both treat you as resident?
• Does the Beckham regime fit your case?
• Will you need to file a Modelo 720 for foreign assets?

Facts that would flip the choice

• A home sale. If it lands before you are resident, the gain may be taxed only in your origin country. After, Spain taxes it.
• Shares with large gains. An exit tax in your origin country can make the year you leave the costly one.
• A pension or lump sum. The treaty decides, so the year you take it can change the tax.
• Day count close to 183. A few days either way can change which option you are in.
• Family already in Spain. Resident family can make Spain treat you as resident.
• A Beckham claim. It must be made within 6 months of starting work in Spain, so the start date matters.

Until the date is fixed

Keep a record of the days you spend in each country. Gather purchase and sale papers and valuations as at the move date. Avoid sales or withdrawals you cannot undo, and keep your origin-country tax ties documented.

Treaty and exit-tax outcomes depend on your origin country and exact dates, so confirm them with a tax adviser before fixing your move date.

Timeline and deadlines

• Apply for the special expat regime (Modelo 149) if you qualify: within 6 months of starting work or registering in Social Security

• Pay by direct debit if you choose that option: a few days earlier, around 25 June

What if you already moved and sold assets this year?

If you were resident in Spain at any point this year, Spain taxes your whole year, including assets you sold before you arrived. Residence means more than 183 days in Spain in the year, or your main economic interests being there. The date of the sale counts, not the date you moved. Gains from earlier years, when you were not resident, are outside Spanish income tax. The exception is anyone on the Beckham regime, whose foreign gains are not taxed this way.

Three steps remain: declare the gain, claim credit for tax already paid abroad, and use the treaty procedure if two countries both tax you.

Declare the gain

Report the sale in your annual income tax return (Modelo 100) for the year of sale, in the savings income section. You file it between April and June of the following year.

If you miss the deadline, file late yourself before the tax agency (AEAT) contacts you. The surcharge starts at 1% for each full month of delay and rises the longer you wait, to 20% after 12 months. From the 12th month you also pay late-payment interest. Penalties are waived when you file voluntarily. Interest rates are set each year, so check the current rate with the tax agency.

If the tax agency finds the omission first, the penalty is usually 50% to 150% of the tax due, plus interest.

If you already filed and made a mistake, fix it with a rectification request or a complementary return.

Claim credit for foreign tax

If you paid tax on the same gain in another country, Spain lets you deduct it. The deduction is the lower of two amounts: the foreign tax you actually paid (within any treaty limit) and the Spanish tax due on that income. It is worked out separately for each type of income and each country.

• Keep certificates or receipts that prove the foreign tax you paid.
• Foreign tax above the Spanish tax is not refunded. In some cases you can carry it forward for four years.
• If you pay the foreign tax later, claim the deduction in the year you pay it. File a complementary return for the earlier year if needed.

Use the treaty procedure if both countries tax you

If Spain has a tax treaty with the other country, you can ask for relief through the mutual agreement procedure. It fits cases such as both countries claiming you as resident, or both claiming the right to tax the sale.

• Where to send it: Spain's international taxation office at the tax agency, or the equivalent authority in the other country.
• Deadline: usually 3 years from the first notice of the action that caused the double tax. Some treaties differ, so read yours.
• What to include: a written request with your identity, the facts, the treaty articles you rely on and proof of the tax charged.
• Result: the two authorities consult, and any agreement they reach is then applied. Outside the EU they do not have to reach one. Within the EU, an arbitration process can apply.

The procedure runs alongside normal appeals, not instead of them, and the appeal deadlines keep running. Treaty terms and the facts of your arrival year can change the outcome, so get individual advice before you file.

Frequently asked questions

Does salary I earned abroad before moving count in my Spanish return?

Yes, salary earned abroad before you arrive is added to your Spanish return for the full year, unless you are under the special expat regime. A tax treaty may give the taxing right to the country where you worked, so the income can be exempt or credited in Spain. Otherwise Spain taxes it and gives you credit for the foreign tax paid.

Is my foreign salary exempt because I worked outside Spain?

No, the exemption for work done abroad does not cover work done entirely abroad before your move. It only applies to work done for a foreign company while you are in Spain.

Are dividends and interest from before I arrived taxed in Spain?

Yes, dividends and interest received before you arrive in the same year are taxed in Spain for the full year, with no split by days. Dividends and interest go into the savings base, and rental income goes into the general base. Foreign tax you paid can be claimed back up to the Spanish tax on that income.

Does the special expat regime exclude my foreign gains?

Yes, under the special expat (Beckham) regime foreign gains and investment income are generally outside Spanish tax, because you are taxed like a non-resident on Spanish income only. You need no Spanish residence in the previous five years and a job or qualifying role in Spain.