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What Are Your Legal Obligations as a Foreigner in Spain?

Whether it’s buying a house in Ibiza, starting a business or spending part of the year by the sea, there are many reasons to consider living in Spain. These may be dreams, but what are your Legal Obligations as a Foreigner in Spain?

Whatever your reason for coming to Ibiza, if you have assets, activities or income here, you are expected to comply with Spanish law.

However, the legal obligations of foreigners  can be confusing, particularly if you are not a full-time resident. That’s where the confusion begins and the problems arise.

In this article, we will explain real-life situations and what Spanish law requires of you in each case in a clear and simple way from the perspective of a local legal manager.

Legal Obligations as a Foreigner in Spain: What You Do vs. What the Law Expects

Foreigners in Spain often find themselves in situations that carry important legal obligations without realising it. Here are some of the most common examples:

You bought a property in Ibiza, but don’t live here full time

Many owners assume that, as they don’t live in Spain permanently, no action is required after purchasing a property.

However, if you are a non-resident, you are legally required to file a Non-Resident Income Tax return (IRNR) every year. You will also be subject to local taxes such as the property tax (IBI) and waste collection fees.

It is essential to keep up with this annual compliance to avoid fines, interest charges or tax inspections.

You’ve hired domestic help (cleaner, gardener…)

Although paying household staff in cash or informally is common, under Spanish law, you are considered an employer. 

This means that you must provide a written contract and monthly payslips and register them with the Social Security system.

To avoid fines and legal issues, make sure your domestic staff are properly registered. A legal manager can take care of the entire process for you.

You’re offering services online from Spain

If you invoice foreign clients and assume that Spanish regulations don’t apply to you, that’s not necessarily the case.

If you regularly generate income from Spain, you will probably need to register as self-employed (autónomo) and file quarterly VAT and income tax returns.

To ensure full compliance, it’s essential to determine whether your activity qualifies as economic activity under Spanish law.

You’ve received a letter from the Tax Office (Hacienda)

Receiving an official-looking letter in Spanish from the Agencia Tributaria can be intimidating. Such letters often relate to outstanding tax returns, reviews of residency status, or property-related matters.

Ignoring the letter will not make the issue go away, in fact, the situation may escalate. Acting quickly is key.

A legal manager can review your case, clarify your obligations and respond on your behalf with the necessary documentation.

Legal Obligations as a Foreigner in Spain

Even if you don’t reside full-time in Spain, these are key legal responsibilities you may need to meet:

• Getting a NIE (Número de Identificación de Extranjero): Required for nearly all legal and financial processes in Spain, from property purchases to opening a bank account.
• Understanding Tax Residency: Spending more than 183 days per year in Spain can make you a tax resident, with the obligation to declare worldwide income.
• Filing Non-Resident Tax Returns (IRNR): Owning property in Spain? Even if it’s just a holiday home, non-resident tax applies annually.
• Declaring VAT & Income Tax as autónomo: If you’re working from Spain, even remotely, you may need to register as self-employed, charge VAT, and declare quarterly taxes.
• Paying Local Municipal Taxes: Each Town Hall may charge annual fees: IBI (property tax), waste collection, and more. These vary by location and are often missed.

FAQ – Foreigners & Legal Compliance in Spain

1. Do foreigners have to pay tax in Spain if they don’t live there full time? Yes. If you own property in Spain, you’re expected to file non-resident tax returns yearly.
2. Am I considered a tax resident in Spain? If you spend more than 183 days a year in Spain or have significant economic ties here, you may be a tax resident, subject to worldwide income taxation.
3. What taxes do I pay as a non-resident property owner in Spain? You must pay non-resident income tax (IRNR) and local taxes like IBI and waste fees, even if the property is for personal use only.
4. Do I need to register my cleaner, gardener or other domestic staff in Spain? Yes. You’re considered an employer and must offer a written contract, payslips, and Social Security registration.
5. Can I work remotely from Spain without registering as autónomo? No, not if the activity is regular and generates income. You may be required to register as self-employed, declare VAT, and pay income tax.
6. What’s the difference between resident and non-resident tax obligations? Residents pay tax on global income (IRPF). Non-residents only pay tax on Spanish income or assets (IRNR).
7. What happens if I don’t declare VAT correctly in Spain? You may face fines, interest, and inspections. A Legal Manager ensures VAT compliance and handles declarations on your behalf.

Need Guidance? The Role of a Legal Manager

A legal manager acts as your trusted advisor on your Legal Obligations as a Foreigner in Spain. They are not just a lawyer for one-off issues; they are someone who:

– Oversees ongoing compliance
– Communicates with the authorities on your behalf
– Prevents legal and tax risks before they happen

Whether you own a property or a yacht, work remotely or are simply unsure of your tax situation in Spain, we can help you.

At Almar Lawyers, we support international clients by providing legal clarity and consistency tailored to life in Ibiza and the Balearic Islands.

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