Filing your first Spanish tax return as a new resident

Terms used

• Beckham — The Beckham law is Spain's special tax regime for some newcomers who move to Spain for work.
• AEAT — The AEAT is Spain's tax agency, which runs income tax and the online filing service.
• Renta WEB — Renta WEB is the AEAT's online service for preparing and filing your income tax return.
• Cl@ve — Cl@ve is Spain's electronic identity system for logging in to government websites.
• Modelo 210 — Modelo 210 is the form non-residents use to pay tax on income from Spanish sources.
• Modelo 720 — Modelo 720 is the declaration of assets and accounts held abroad.
• Beckham regime — The Beckham regime is a special tax regime for people who move to Spain for work.
• Datos fiscales — The datos fiscales are the tax data the AEAT already holds about you from employers and banks.

Key rules

• Worldwide income: Your first return covers income from every country, including what you earned before you arrived that year.
• 183 days: More than 183 days in Spain in a calendar year makes you resident for that whole year.
• Draft: The draft will not show your foreign income, foreign property or family situation, so you must add them.
• Foreign tax credit: You can deduct foreign tax you paid, up to the Spanish tax on that same income, so keep proof of it.
• Earlier years: You do not file resident returns for years before you became resident.

What makes a first return different

Your first return covers your income from everywhere in the world, not just Spain. The draft the tax office offers will be thin or nearly empty for you.

Which year is your first return?

Spanish income tax runs by calendar year. If you spend more than 183 days in Spain in a year, you are resident for the whole year. There is no split year. Your first return then includes worldwide income from 1 January, including income you received before you arrived.

Tax treaties can change the result if you were also resident in another country that year. If that applies to you, check the treaty with a tax adviser.

You do not have to file Spanish resident returns for years before you became resident. For those years, the only Spanish duty is non-resident tax on income from Spanish sources, such as rent from Spanish property. It is usually filed on Modelo 210. Foreign income earned before you became resident is not taxed in Spain. The exception: if you met the residency test in an earlier year, even without registering, you owed a resident return for that year.

Special regime for people who moved for work

If you moved to Spain for work, you may qualify for the Beckham regime. It taxes you as a non-resident on Spanish income at a flat rate and exempts most foreign income. You opt in by notifying the AEAT within six months of starting work or registering with Social Security. Conditions and rates have changed in recent years, so check the current rules before you decide.

What the draft will contain

The draft only holds data the AEAT gets from third parties. That means income and withholdings from a Spanish employer and interest from Spanish banks. It will not hold:

• foreign income
• foreign property
• your personal and family circumstances

Check the family data first, then add everything missing before you confirm anything.

Filing step by step

1. Open Renta WEB and log in with Cl@ve, an electronic certificate or the Renta reference.
2. Check your personal and family data, then open the draft with its datos fiscales (the tax data the AEAT holds on you).
3. Review each income section. Add foreign income, rentals and gains, and correct errors.
4. Add deductions and regional items. Fill in the section for tax paid abroad.
5. Check the result: a payment, a refund or zero. Choose how to pay or receive the refund, with your IBAN if needed.
6. Submit, then download and save the receipt with its secure verification code.

The filing campaign usually runs from April to the end of June. Dates and access methods are set each year, so check the current campaign.

Claiming credit for foreign tax

You can deduct foreign income tax you actually paid on income that Spain also taxes. The deduction is the lower of two amounts:

• the foreign tax you really paid
• the Spanish tax that corresponds to that foreign income

Calculate it separately for each country and each type of income, whether it falls in the general base or the savings base. Enter the income, the country and the tax paid in the Renta WEB section on international double taxation. If the foreign tax is more than you can use, you can carry the excess forward for four years.

Treaties decide which country may tax and cap the foreign tax that counts. Tax that a treaty does not let the other country charge, and that you could reclaim there, does not count. Keep proof of the foreign tax paid, because the AEAT may ask for it. The documents list below shows what to keep.

Foreign assets

Foreign assets you held before arriving may need reporting on Modelo 720 from your first year as a resident. Gather your account details at 31 December with the rest of your papers.

Timeline and deadlines

• Count your days in Spain: more than 183 days in the calendar year makes you resident for the whole year: during the calendar year of your arrival

• Log in to Renta WEB with Cl@ve, an electronic certificate or the Renta reference, then confirm your personal and family data: during the Renta campaign, which usually runs from April to the end of June

• Review the draft, add foreign income, rentals and gains, and fill in the tax paid abroad section: after confirming your data and before submitting

• Check the result, choose how to pay or receive a refund, and submit: before the campaign closes

• Download and save the receipt with its secure verification code: right after you submit

Documents you need

• Proof of the foreign tax you paid on each foreign income, such as a certificate or assessment from the foreign tax authority. Keep it in case the AEAT, Spain's tax agency, asks for it.

• A way to log in to Renta WEB: Cl@ve, an electronic certificate, or the Renta reference number.

• Your own records of foreign income, foreign property and family circumstances, because the draft will not contain them and you must enter them yourself.

Documents and figures to gather before you file

• Find your ID or NIE and set up a way to log in: Cl@ve PIN, a digital certificate or the reference number.

• Collect your payslips and employer certificates, both Spanish and foreign, and note which payers paid you in the year.

• Gather bank interest and dividend statements for the year.

• Collect proof of foreign tax paid, such as a tax-authority certificate, a foreign tax assessment, payslips or employer certificates showing the withholding, or a copy of the foreign return.

• Check that each foreign tax document shows the amount and type of tax, and get a translation if the AEAT asks for one.

• Write down the dates you arrived in Spain.

• Gather property details: purchase deeds, cadastral reference, and mortgage and rental data.

• Download your account statements at 31 December and the details of your foreign accounts for Modelo 720, the declaration of assets held abroad.

• Pull together records of any capital gains, crypto transactions and family data.

• Add up your employment income from each payer and compare it with the filing limits set out in Who has to file the Spanish income tax return (Renta).

Frequently asked questions

Is income I earned before moving to Spain included in my first return?

Yes, if you count as resident for that year, income earned before you arrived is included in your first return. Spain taxes you as a resident for the whole calendar year, with no split year, so worldwide income from 1 January counts.

Do I have to file Spanish returns for the years before I became resident?

No, you do not have to file resident returns for years when you were not a Spanish tax resident. The only duty then is non-resident tax on Spanish income, such as rent from a Spanish property, filed with the Spanish tax agency (AEAT) on Modelo 210. Foreign income from those years is not taxed in Spain.

Can I choose a special tax regime when I move to Spain for work?

Yes, workers who moved to Spain for work can opt for the special regime for incoming workers (the Beckham law), if they meet its conditions.

How does the foreign tax I paid reduce my Spanish tax?

You can deduct foreign income tax you actually paid on foreign income that Spain also taxes, up to the Spanish tax that income produces. It is worked out by country and type of income.