What tax deductions can I claim in Spain?


What tax deductions can I claim in Spain?

In general, you also have a right to tax deductions in Spain for:
  • Payments for the Spanish social security system.
  • Spanish pension contributions.
  • Costs of buying and renovating your main home.
  • Your charitable donations.


What is the tax loophole in Spain?

With Beckham Law, foreign workers who move to Spain and become residents can pay a fixed reduced tax rate of 24% for income up to €600,000 (USD 644,000). After €600,000, the tax rate goes up to 47%. The rate only applies to income generated in Spain for the first six years.


What tax breaks do foreigners get?

The foreign tax credit is a U.S. tax break that offsets income tax paid to other countries. To qualify, the tax must be imposed on you by a foreign country or U.S. possession and you must have paid the tax. Taxes on income, wages, dividends, interest, and royalties generally qualify for the foreign tax credit.


Do foreigners pay taxes in Spain?

Both residents and non-residents can be taxed, although non-residents are only taxed on assets located in Spain. Tax rates are progressive and start at 7.65% (0-7,993 EUR), up to 34% (over 797,555 EUR).


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