Spanish tax residency, the 183-day rule and Modelo 720 explained for expats
Agency Director | Wealth Protection & Expat Specialist
Moving to Spain doesn’t only change where you live: at some point it changes where you pay tax. Many expats are surprised by how early that happens, and by the fact that Spain can tax income and require information about assets they still have back home.
When are you tax resident in Spain?
For each calendar year, you’re generally considered tax resident in Spain if any of these apply:
You spend more than 183 days in Spain in the year. Temporary absences can count as time in Spain unless you prove tax residence elsewhere.
Spain is the main centre of your economic interests or activities.
Your spouse (not legally separated) and minor children live in Spain, which creates a presumption of residence, unless you prove otherwise.
Tax residency is different from your immigration status or your padrón registration. You can be resident for tax purposes without having thought about it.
What changes when you’re tax resident
Spain taxes your worldwide income: salary, pensions, rent, interest, dividends and gains, wherever they come from.
Double taxation treaties decide which country can tax each type of income and how to avoid paying twice. The treaty with your home country matters a lot.
Savings income, such as interest, dividends and gains, is taxed at progressive rates from 19% to 30% under the current scale.
Modelo 720: declaring assets abroad
Spanish tax residents must file the Modelo 720 informative return if they hold, abroad, assets worth more than €50,000 in any of these categories:
Bank accounts.
Securities, investment funds, and life and savings insurance.
Real estate.
It’s an information return, not a tax. It’s filed between 1 January and 31 March, for the previous year. After the first filing, you only file again if the value in a category increases by more than €20,000, or if you sell or close an asset.
The very heavy penalties that used to apply were declared disproportionate by the EU Court of Justice in 2022, and the regime was changed. Filing correctly and on time still matters. Crypto held abroad has its own return (Modelo 721).
Practical tips
Get advice before you move, not after: some decisions, such as selling investments or cashing in a pension, can be taxed very differently depending on when you do them.
Keep your home-country paperwork: valuations at 31 December, account statements and proof of when you arrived.
Review home-country tax wrappers: many lose their tax advantages here. See UK ISAs and pensions after moving to Spain.
This article is general information, not tax advice. Always check your case with a tax adviser (asesor fiscal or gestor).
Where we fit in
We aren’t tax advisers, but we help expats organise their savings in Spain under Spanish rules: investment funds with tax-free switching between funds, unit-linked savings and pension plans. We work alongside your tax adviser when needed.
How we can help
Come and see us in central Murcia or book a video call in English. We’ll look at your savings and explain the Spanish options clearly.
Organise your savings in Spain
The second generation leading the agency’s innovation and its national and international growth. He specialises in business protection and investment strategies, and personally leads our advice for the expat community in Spain.
MiFID II certified financial adviser