Valencia Trader

If you are resident in Spain you will be liable for income, capitals gains and succession duty (inheritance tax) on your worldwide assets. This is in addition to other incidental tax liabilities such as IVA (VAT) and gift taxes. It is worth noting that gift tax and inheritance tax in Spain are payable by the receiver of the gift or inheritance.

If you live on a boat within 12 nautical miles of Spanish land, you are a Spanish tax resident. A day within 12 nautical miles is a day spent in Spain for tax purposes.

Fiscal Identity Numbers If you reside in Spain, or if you own a property and are non-resident, you need a Numero de Identificacion de Extranjeros (NIE). The number identifies you to the Spanish taxman and is required when you pay your taxes or have any dealings with the Hacienda (Spanish tax office).

To obtain one, present yourself at the nearest police station with a foreigners’ department (comisaria), along with your passport and a photocopy of it. Fill in the form, keep the copy given to you, and wait for the number to be assigned. Check with the comisaria how long the process will take as it varies from a few days to a few weeks, and remember to take your passport and the copy of the form when you go to collect the NIE certificate from the comisaria.

Obtaining this NIE is this first thing you should do if you plan to reside in Spain and is also required if you buy a property (whether resident or non-resident). This system however is currently under review, and may even be abolished.

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