Share with your friends

Spain - Overview and Introduction

Spain - Overview and Introduction

Taxation of international executives


Related content

Crowded street with a round about in middle decorated with fountain and yellow flowers

Foreign individuals who become Spanish residents are subject to Spanish Personal Income Tax (PIT) on a worldwide basis. Non-residents will be subject to PIT, but only on income arising and capital gains obtained from Spanish sources.
A special tax regime for inbound assignees might be available for those individuals who become Spanish tax residents as a consequence of their assignment to Spain or of acquiring a director position in an entity, provided certain requirements are met.

An individual may be taxed as part of a family unit, usually consisting of two spouses and children under the age of 18 (except those living independently with parental consent).

The members of a family unit may choose to file separate tax returns. If one member of the family unit chooses to file a separate return, then the other members of the family unit must also file separately.

The tax year for an individual is the calendar year, unless the taxpayer dies on a day other than 31 December.

The official currency of Spain is the Euro (EUR).

Herein, the host country/territory refers to the country/territory to which the employee is assigned. The home country/territory refers to the country/territory where the assignee lives when they are not on assignment.

Specific Personal Income Tax regulations, scales of rates and special regime for inbound assignees apply in the territories of the Basque Country (Vizcaya, Guipuzcoa and Alava) and Navarra, and advice on the specific tax treatment applicable therein should be sought for assignments to/from them.

Connect with us


Want to do business with KPMG?


loading image Request for proposal