Tax Obligations in Ibiza as a Non-Resident

Wealth Management

For non-residents in Ibiza, compliance with tax obligations is essential.

Keeping proper records of income and expenses, using online platforms and keeping abreast of changes in regulations are key to smooth and efficient tax management.

In the event of doubt or changes in the financial situation, seeking professional advice early on can prevent future complications and ensure a smooth relationship with the tax system.

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Tax Obligations in Ibiza as a Non-Resident

Complying with your Tax Obligations in Ibiza as a Non-Resident is an essential aspect in order to avoid complications and to enjoy your stay without any worries.

Ibiza is not only a holiday paradise, it has also become an attractive destination for property and business investment. 

Non-residents who own or rent property or earn income on the island must comply with the specific tax rules for this group.

Tax rules for non-residents in Ibiza

Non-residents in Ibiza are subject to various taxes, including Income Tax (IRPF) on income such as rents and capital gains. And others such as

Capital gains tax:  applies to the sale of property or assets with a value higher than the purchase price.

Property tax (IBI): annual tax paid on the ownership of a property or premises.

Transfer of property Tax (ITP): Tax on the purchase of real estate in Ibiza.

Value Added Tax (VAT): applies to most goods and services.

In addition, those who own assets on the island, such as property or boats, must comply with specific tax obligations, such as municipal taxes.

Spanish Golden Visa for Investors

The Golden Visa is an excellent option for obtaining residency in Spain. By investing in property or qualifying financial assets, you can access this programme. 

Find out more about the requirements and benefits in our previous blog article.

Tax Obligations in Ibiza as a Non-Resident

Buying or Selling Property in Ibiza as a Non-Resident

When buying a property, you need to take into account transfer tax (ITP), VAT and stamp duty (AJD). Know the rates and plan your finances accordingly.

Keep your records organised, consult legal and tax advisors and make sure you meet all your obligations. 

Avoiding debts and liens is essential for a hassle-free experience in Ibiza.

Tax obligations for non-resident companies and for the self-employed persons

Differences according to the type of activity

Self-employed persons: must register with the Social Security and submit quarterly tax returns.

Civil companies: must register with the trade register and file annual tax returns.

Commercial companies: must register with the trade register and file annual tax returns.

They must keep accounts of income and expenditure. They must declare profits made on the island and pay the relevant withholding taxes to their employees.

Advice for Complying with Your Tax Obligations in Ibiza as a Non-Resident:

Keep detailed records of your income and expenses.

  • Seek advice from a lawyer or accountant with expertise in international tax law.
  • Use online platforms to manage your tax obligations.
  • Keep up to date with the latest tax changes.

Your peace of mind is our priority. Let our legal services for foreigners in Ibiza take care of the formalities so you can enjoy yourself to the full.

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