Expat Guide to the Spanish Tax Return (IRPF)

Filing taxes in Spain as an expat can be a maze of specific terminology. The key is distinguishing between General Tax Base and Savings Tax Base, as they are taxed at different rates.

• General Tax Base (work, rent, pensions): The top marginal state rate is 43.5%, but this can be higher when combined with regional tax rates, often exceeding 45-50% depending on the region of residence. 

• Savings Tax Base (dividends, interest, capital gains): 19%: First €6,000 of income.to 28-30%: Over €300,000.

Big Three” areas for expats: Salary, Foreign Assets, and Deductions

1. Income & Wealth (Where the Money Goes)

This is the “General Base” where most people pay the highest rates. For most expats, this is the largest part of the declaration. Most expats will find their Spanish salary data pre-filled, but it’s vital to check these for accuracy:

Employment Income (Rendimientos del Trabajo)

Properties income

2. Investment, Savings, Properties: Double Taxation

Investments and savings (Savings Base)

Spain taxes residents on worldwide income. Even if money stays in a home country bank account, it must be declared here.

Global Strategy: The “Double Taxation Shield”

Spain taxes residents on their global income. If you earned it anywhere in the world, it likely belongs in one of these boxes:

Box 0588: If you paid tax to a foreign government (HMRC, IRS, etc.), do not skip this box, or you will pay twice! The most important box for expats. If you paid tax on foreign income in the source country, enter it here to avoid paying twice.

Foreign Rental Properties

Spain requires you to report income from abroad even if it never enters a Spanish bank account.

Note: The 60% “main residence” rental reduction is usually reserved for properties in the EU/EEA.

3. Deductions: Reducing the Bill

These are the most common ways expats can reduce their tax liability. These boxes can be left empty at the draft (borrador). You must check them manually.

National Level (Available to everyone)

Regional Level (Autonomous Communities)

These vary by where you live (Madrid, Catalonia, Andalusia, etc.). Check your regional section for:

1. Rental Deductions: For young tenants or those with low incomes.

2. Education: Some regions allow deductions for language classes or school uniforms.

3. Domestic Help: For those paying Social Security for cleaners or nannies.

• Renting a home (if under a certain age/income).
• Educational expenses (language lessons, school uniforms).
• Hiring domestic help (Social Security for a cleaner or nanny).

4. Summary Box Mapping

📄 Need an official form? > You can download the reference PDF and other tax models in our Spanish Tax Forms Library. We provide summaries and official BOE templates to help you prepare your filing.

The “Ready to File” Expat Checklist:

This checklist covers the most critical documents that expats often need to manually verify or add to their Renta Web profile. Keeping these in a dedicated folder (digital or physical) will make the filing process much smoother and provide the necessary evidence in case of a future audit.

Before opening the Renta Web portal, you should gather these documents to ensure the data in the boxes is correct. Before clicking “Presentar,” ensure you have:

1. Certificado de Retenciones:

Provided by Spanish employers (details for Box 0003).

2. Foreign Bank Statements:

To declare interest (Box 0027) and dividends (Box 0029).

Dividend Vouchers (showing gross amount and foreign tax withheld).

Foreign Interest: Bank statements for all savings accounts held outside of Spain.

Foreign Rental Receipts (and a list of expenses like repairs and local taxes).

Exchange Rates: All foreign currency must be converted using the average annual rate (or the rate on the day of receipt).

3. Rental Statements:

For foreign properties, including all deductible expense receipts (Box 0102).

Rental Expenses: Invoices for repairs, insurance premiums, foreign property taxes (e.g., Council Tax/IBI), and mortgage interest certificates.

4. Foreign Tax Certificates:

Proof of tax paid abroad to claim the credit (Box 0588).

Double Taxation: Official certificates or tax returns proving you already paid tax to a foreign government (HMRC, IRS, etc.).

5. Donation Certificates:

From Spanish NGOs to claim the 80% credit (Box 0723).

6. Regional Deductions

(Education): Detailed invoices for language classes, tutoring/support classes, or school uniforms (specific to Madrid, Andalusia, or Valencia).

(Rent): Proof of rent payments and the NIF/Tax ID of the landlord.

(Household): Social Security payment receipts for domestic employees, cleaners, or nannies (specific to Madrid and Andalusia).

Official Resources: For the most up-to-date tax information, official calendars, and technical details, you can visit the Agencia Tributaria website here.

Practical boxes guide for expats

Box 0029 and 0588

How to actually input a foreign dividend into Box 0029 and claim the credit in Box 0588

Declaring foreign dividends is a common task for expats. The goal is to report the total amount received and then “claim back” the tax you already paid in the country of origin.

Here is the step-by-step workflow to handle this in your Spanish tax return (Modelo 100).

Step 1: Declare the Gross Amount (Box 0029)

Even if you received the money in a foreign account (like a UK, US, or German account), you must report the Gross Dividend (the amount before any foreign taxes were taken out).

1. Locate Box 0029 (Dividendos y demás rendimientos…).
2. Click the pencil/edit icon.
3. Income (Ingresos): Enter the total gross amount in Euros.
   • Tip: Use the average exchange rate for the year published by the Bank of Spain.
4. Withholdings (Retenciones): Leave this at €0 if you used a foreign broker. Only enter a value here if a Spanish bank already withheld 19% tax for you.
5. Expenses (Gastos): You can include administration and custody fees charged by your bank (if applicable).

Step 2: Claim Double Taxation Relief (Box 0588)

To avoid paying tax twice, you must tell the system how much tax you paid abroad.

1. Navigate to the section “Deducción por doble imposición internacional” (usually found in the later pages of the return, around Box 0588).
2. Income (Ingresos íntegros): Enter the same gross amount you put in Box 0029.
3. Tax paid abroad (Impuesto satisfecho en el extranjero): Enter the amount withheld by the foreign country.
   • Crucial Rule (The 15% Cap): Most tax treaties (DTA) between Spain and other countries (like the US, UK, or Germany) limit the claimable amount to 15%.
   • If the foreign country withheld 25%, you can only put 15% in Box 0588. You must claim the remaining 10% back from the foreign tax authority (e.g., the IRS or HMRC), not from Spain.

Practical Example

Imagine you received a €1,000 dividend from a US company. The US withheld 15% ($150 / ~€138).

• Box 0029: You enter €1,000.
• Box 0588:
  • Gross Income: €1,000
  • Tax paid abroad: €138
• Result: Spain calculates the tax (e.g., 19% = €190) and then subtracts the €138 you already paid. You only pay the €52 difference to the Spanish Tax Agency.

📋 Document Checklist for these Boxes

To back up these entries in case of an audit, keep these ready:

• Dividend Voucher/Statement: Showing the gross amount, the date, and the tax withheld in the foreign country.
• Exchange Rate Proof: A printout of the exchange rate used if the dividends were paid in USD, GBP, etc.
• The “Modelo 720”: If your total foreign investments (shares/funds) exceed €50,000, remember you must file the separate informative Modelo 720 (usually due by March 31).

Boxes 0061 and 0102

Reporting foreign rental income in Boxes 0061-0102?

Reporting rental income from a foreign property is more complex than dividends because you have to balance the identification of the asset with a proportional calculation of expenses.

Here is the step-by-step guide to reporting foreign rental income in your Spanish tax return.

Step 1: Identify the Property (Boxes 0061–0069)

Before entering income, you must “register” the property in the return so the Tax Agency knows where the money is coming from.

1. Box 0065 (Situation): This is the “key” box. For properties outside of Spain, you must select Code 5 (Inmueble situado en el extranjero).
2. Box 0066 (Cadastral Reference): Since foreign properties don’t have a Spanish Referencia Catastral, you can leave this blank or enter the equivalent local ID from your home country.
3. Box 0062-0063: Confirm your ownership percentage (e.g., 50.00 if owned with a spouse).
4. Box 0075 (Usage): Mark the property as Rented (Arrendamiento).

Step 2: Declare the Income (Box 0102)

• Box 0102 (Gross Income): Enter the total rent received for the year in Euros.
  • Note: You must report the gross amount before any management fees or local taxes were deducted at the source.

Step 3: Deduct Expenses (Boxes 0105–0117)

Unlike dividends, you only pay tax on the net profit. However, you can only deduct expenses proportional to the days the property was actually rented.

• Box 0105 (Interest): Deduct the mortgage interest (not the principal) paid during the rental periods.
• Box 0106 (Repairs): Maintenance, painting, or fixing appliances.
• Box 0113 (Utilities): Electricity, water, or gas if you paid for them while the tenant was there.
• Box 0114 (Insurance): Home and liability insurance premiums.
• Box 0115 (Local Taxes): Include property taxes paid to the foreign local government (e.g., UK Council Tax or US Property Tax).

Step 4: The “Secret” Deduction (Box 0131 – Depreciation)

Many expats miss this. You are allowed to deduct 3% of the construction value of the property as “wear and tear” (Amortización).

• How to calculate: Take the purchase price, subtract the value of the land (usually found on your local tax bill), and multiply the remainder by 3%.
• Pro-rata: If the property was only rented for 200 days, you can only claim $\frac{200}{365}$ of that 3%.

Step 5: Claim the Foreign Tax Credit (Box 0588)

Just like with dividends, if you already paid income tax on this rent in the country where the property is located:

1. Go to Box 0588 (Doble Imposición Internacional).
2. Enter the Net Profit (after Spanish deductions) and the Tax Paid Abroad.
3. Spain will credit you for the foreign tax paid (up to the amount you would have paid in Spain) so you aren’t taxed twice.

⚠️ The “60% Reduction” Warning

In Spain, if you rent a property for long-term permanent housing, you get a 60% (or 50% for new contracts) tax reduction on the profit.

Important: The Spanish Tax Agency usually denies this reduction for foreign properties unless they are located within the EU or EEA. If your property is in the UK, USA, or Canada, you generally must pay tax on 100% of the net profit.

Would you like me to clarify the specific rules for “Imputed Income” (Box 0089) if your foreign property was vacant for part of the year?

Box 0089:

Reporting Imputed Real Estate Income (

In Spain, the tax agency assumes that any urban property you own (that isn’t your main home or a business premise) provides you with a “financial benefit,” even if it sits empty. This is called Imputed Real Estate Income (Imputación de Rentas Inmobiliarias).

If your foreign property was vacant for part of the year, you must declare that “fictitious income” in Box 0089.

Step 1: When do you use Box 0089?

You must fill this out for every day the property was not rented out and was not your primary residence.

• Scenario A: The property was vacant all year $\rightarrow$ Declare 365 days of imputed income.
• Scenario B: The property was rented for 200 days and vacant for 165 days $\rightarrow$ Declare rental income (Box 0102) for the 200 days and imputed income (Box 0089) for the 165 days.

Step 2: How to Calculate the Amount for Foreign Properties

Since foreign properties do not have a Spanish “Cadastral Value,” the law provides a specific formula:

1. Find the Base Value: Take the highest of these two:
   • The purchase price (acquisition value).
   • The value determined by a foreign administration for other taxes.
2. Apply the 50% Rule: For foreign assets, you only calculate the tax on 50% of that base value.
3. Apply the Percentage:
   • Multiply that 50% by 1.1%.
4. Prorate for Days: If it was only vacant for part of the year, multiply the result by $\frac{\text{Vacant Days}}{365}$.

Example: You bought a flat in London for €400,000. It was vacant for 180 days in 2024.

• Base: €400,000 $\times$ 50% = €200,000
• Annual Imputed Rent: €200,000 $\times$ 1.1% = €2,200
• Amount for Box 0089: €2,200 $\times$ $\frac{180}{365}$ = €1,084.93

Step 3: Entering it into the Return

1. Box 0085: Enter the number of days the property was at your disposal (vacant).
2. Box 0089: Enter the final calculated amount.
3. Note on Expenses: Unlike rental income, you cannot deduct any expenses (mortgage, repairs, etc.) against imputed income. It is a “pure” tax on ownership.

Summary Checklist for Expats with Vacant Property

A Final Tip on “Double Counting”

If you are a tax resident in Spain and your foreign property is worth more than €50,000, make sure you have also filed Modelo 720 (due by March 31st). While Box 0089 is for the tax on the income, Modelo 720 is just an informative declaration of the asset’s existence.