FAQs
FAQs
What is the best way to invest in a Spanish SL: through a Spanish company or a UK company, and via a capital increase or a loan?
For a meaningful stake, investing through a Spanish SL via a capital increase is usually preferable. With at least 5% held for one year, future dividends and capital gains are 95% exempt (art. 21 LIS). Investing through a UK company means Spanish non-resident withholding tax, a review of UK tax treatment and filing form D-1A.
Last updated: 22/10/2026 · Commercial transactions
Is it correct for an Italian supplier to charge me VAT on an invoice for goods, and how can I reclaim it in Spain?
As a general rule, no. If you buy goods as a business from a supplier in another EU country and both of you have a valid VAT number in the VIES system, the invoice must be issued without VAT. You self-account for Spanish VAT on Modelo 303 and deduct it at the same time. Italian VAT cannot be deducted in Spain.
Last updated: 22/10/2026 · Tax management
Can you pay for a stake in a Spanish limited company (SL) in two instalments through a capital increase?
Not within the same capital increase. In a Spanish SL (Sociedad Limitada, private limited company), new shares – both nominal value and share premium – must be paid up in full when the increase is executed (art. 78 LSC). To invest in tranches, you carry out two successive capital increases or combine a first equity tranche with a convertible or participating loan, all governed by a shareholders' agreement.
Last updated: 22/10/2026 · Commercial transactions
How do I get the Spanish Social Security S041 form to register for healthcare in another EU country?
The S041 is not something you apply for or receive yourself. It is an electronic EESSI form that the INSS sends directly to the foreign health insurer to certify your insurance periods in Spain. If it is delayed, you can file a written request with the INSS to speed it up and provide your informe de vida laboral (Spanish contributions record) in the meantime.
Last updated: 22/10/2026 · Domestic workers
Tax on the sale of shares in a Spanish company carrying on a business activity, with no non-business property, by a Swiss tax resident
The gain is exempt from tax in Spain and is taxable in Switzerland under Article 13.4 of the Spain–Switzerland Double Taxation Agreement.
Last updated: 22/10/2026 · Capital gains
What penalties and costs does a hospitality business in Spain face if it cannot prove how tips were shared out among staff?
If the business cannot prove the tips were paid to staff, the Spanish Tax Agency (Hacienda) may treat them as sales: 10% VAT, Impuesto sobre Sociedades (Spanish corporation tax), interest and a penalty of 50% to 150%. If the distribution is proven, the cost is limited to IRPF withholding (Spanish income tax) and Social Security contributions, which are reduced by voluntarily correcting the position before any formal request from the authorities.
Last updated: 20/10/2026 · Tax inspections
Taxation of dividends from a Spanish trading company (with no non-business property) received by a Swiss tax resident
Swiss tax residents pay 15% Spanish withholding tax on these dividends (10% for companies holding over 25% directly), creditable in Switzerland under its domestic tax rules.
Last updated: 20/10/2026 · Capital gains
If I have a Spanish Golden Visa and a property in Spain, am I tax resident or can I still pay tax as a non-resident?
Holding a Golden Visa or a TIE card does not make you tax resident in Spain. What matters is spending more than 183 days a year in Spain or having your centre of economic interests here. If neither applies, you are taxed as a non-resident. With a property that is not let out, you file a Modelo 210 every year for deemed (imputed) rental income.
Last updated: 19/10/2026 · Annual income tax return for non-residents
I paid more tax on my Spanish rental income last quarter – could it be because of Brexit? Have my tax rate and deductible expenses changed?
Yes. Since Brexit, UK residents pay 24% tax on Spanish rental income with no deductible expenses, whereas EU residents pay 19% and can deduct costs.
Last updated: 19/10/2026 · Declaration of real estate rentals
How is Spanish wealth tax calculated for non-residents who own property in Spain?
Non-residents are taxed on a limited basis, only on assets located in Spain. Property is valued at the highest of three figures: cadastral value, value assessed by the tax authorities or purchase price. Debts taken on to buy the property and the tax-free allowance are deducted, and a progressive scale is applied to the result.
Last updated: 19/10/2026 · Wealth tax
How are tips taxed in Spain when a restaurant or bar collects them and shares them out among staff?
Voluntary tips are not part of the taxable base for Spanish VAT (IVA). If they are passed on in full to staff and recorded as a liability to employees, the effect on Corporation Tax is neutral. For the employee they are employment income: if the business collects and distributes them, they must go through payroll with tax withholding and social security contributions.
Last updated: 19/10/2026 · Business accounting
When does the Spanish income tax return season start and end, and what are the filing deadlines?
The Spanish income tax season (IRPF) runs every year from early April to 30 June. Online filing opens on day one; filing by phone from early May; and in person from early June. Direct debit payment closes a few days earlier, around 25 June. The Spanish Tax Agency (AEAT) sets the exact dates each year.
Last updated: 18/10/2026 · Personal income tax
Is it mandatory to provide the minimum share capital of €3,000 in the incorporation of limited companies?
In the constitution of companies, specifically in limited companies, and based on the regulations of article 62.2 of the Capital Companies Law, it is currently not necessary to prove the contribution of the share capital, if the shareholders are jointly and severally liable to creditors for the reality of them.
Last updated: 20/03/2022 · Incorporation of companies
If there are no rentals in a quarter, but I have received an income for a reservation in future periods, do I have to make a declaration?
Article 15 of the IRNR Law establishes that taxpayers who obtain income without the intermediation of a permanent establishment will be taxed separately for each total or partial merit of income subject to taxation, without it being possible to compensate between them. Therefore, if a property has not been rented in a period, but the reserve fees have been payable, the rent must be declared in the quarter in which the income has been received.
Last updated: 14/03/2022 · Declaration of real estate rentals