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International tax planning advice in Spain
Optimize your global and cross-border taxes with Pellicer & Heredia
An international tax planning in Spain requires a coordinated review of your tax residence, worldwide income and assets, applicable double taxation treaties, reporting obligations and any special tax regimes that may reduce unnecessary exposure.
At Pellicer & Heredia, we advise expatriates, investors, entrepreneurs, company owners and internationally mobile families before they move to Spain, invest, restructure a business, transfer assets, receive an inheritance or sell property.
Reviewed by Guillermo Romano Ortiz, International Tax Advisor at Pellicer & Heredia firm
- Member of the Alicante Association of Administrative Managers
- Languages: English and Spanish
- Last updated: August 2026.
Don’t pay more tax than necessary and let our international tax experts guide you
Our lawyers and tax advisors in Spain identify the correct treatment in advance, apply available treaty relief, ensure compliance with Spanish reporting duties and design a cross-border strategy that protects your interests across every jurisdiction involved.
When do you need international tax planning advice?
A cross-border review is especially important when your personal life, income, investments or business activities connect you to more than one tax system. The correct answer often depends on the timing of a move or transaction, the legal ownership of an asset, the source of the income and the wording of the relevant double taxation treaty.
- You are planning to move to Spain and need to understand when Spanish tax residence may begin.
- You already live in Spain and receive salary, pensions, dividends, interest, rental income or capital gains from abroad.
- You own Spanish property while remaining tax resident in another country.
- You hold foreign bank accounts, securities, investment funds, pensions, cryptoassets, companies or real estate.
- You operate a company, partnership, trust, foundation or family business across jurisdictions.
- You are considering the Beckham Law or another tax regime linked to your relocation.
- You plan to gift, inherit, restructure or transfer wealth between family members in different countries.
- You are selling a business, shares, investments or Spanish property and need to model the tax outcome before completion.
What is inheritance tax in Spain?
Spanish inheritance tax is a personal tax charged on the assets and rights that a natural person receives after someone dies. It applies to inheritances, legacies, succession rights and, in many cases, life insurance payments where the policyholder is different from the beneficiary.
The tax is not calculated on the estate as a single block. Each heir is taxed separately on the net value of what they receive. This is why two people inheriting from the same estate may pay different amounts: one may be a spouse or child, another may be a sibling or unrelated beneficiary, and each may live in a different country.
Inheritance tax is closely connected to succession law, but it is not the same thing. Succession law determines who inherits and in what proportion. Inheritance tax determines how much each heir must pay to accept and register the inherited assets.
Key facts about international taxation in Spain
Tax residence
A person may be resident if they spend more than 183 days in Spain, have their main economic interests here, or fall within the family presumption.
Residence normally changes the scope of taxation from Spanish-source income to worldwide income.
Treaty residence
When two countries treat the same person as resident, the relevant treaty may apply tie-breaker tests.
A domestic residence result does not by itself resolve every cross-border conflict.
Worldwide income
Spanish tax residents are generally taxed on income from all countries, subject to treaty rules and relief for double taxation.
Foreign pensions, dividends, interest, rent and gains must be classified correctly.
Foreign assets
Residents may have information-reporting duties for certain assets held abroad, including Form 720 and, where applicable, Form 721.
Reporting is separate from paying tax and may apply even where no immediate tax is due.
Special inbound regime
Eligible individuals may elect for the Article 93 regime, commonly known as the Beckham Law.
Eligibility, timing and the six-month application deadline must be reviewed before it is lost.
Non-residents
Non-residents may still pay Spanish tax on Spanish property, rent, gains and other Spanish-source income.
Ownership structure, deductible costs, treaty protection and filing dates affect the result.
Wealth and succession
Wealth Tax, the Temporary Solidarity Tax on Large Fortunes, Inheritance Tax and Gift Tax may depend on residence, asset location and regional rules.
The autonomous community and the timing of a transfer can materially change the liability.
How Spanish tax residence is determined
Spanish tax residence is assessed for each calendar year. Spending more than 183 days in Spain is one of the principal tests, and sporadic absences may be included unless tax residence in another country is proven.
A person may also become resident when the main centre or base of their activities or economic interests is in Spain, directly or indirectly. There is also a rebuttable presumption where a non-separated spouse and dependent minor children habitually reside in Spain.
The 183-day test is not the only test
Counting days is important, but it should not be used in isolation. Working patterns, the management of a business, the location of investments, family circumstances and documentary evidence can all become relevant. A person who spends fewer than 184 days in Spain may still face a residence issue if the centre of their economic interests is located here.
What happens if two countries claim you as tax resident?
Dual residence is normally analysed under the double taxation treaty between Spain and the other country. Depending on the treaty, the analysis may consider the location of a permanent home, the centre of vital interests, habitual abode, nationality and, in some cases, a mutual agreement between the two tax authorities. The order and wording of these tests must be checked in the specific treaty.
What does our international tax planning service cover?
Our work begins with a complete map of the client’s personal circumstances, jurisdictions, income streams, entities and assets. We then identify the taxes, forms, treaty provisions and deadlines that may affect the proposed decision. Recommendations are documented so that each step can be implemented and supported with the appropriate evidence.
Tax planning before moving to Spain
Relocation planning should begin before the date of arrival. We review the likely residence year, payroll and self-employment income, foreign pensions, investment portfolios, property income, company ownership, stock options and potential access to the Beckham Law. The objective is to avoid creating an unexpected Spanish liability through a transaction completed shortly before or after the move.
Cross-border income and double taxation relief
Income must first be classified correctly under Spanish law and the applicable treaty. Employment income, directors’ fees, pensions, dividends, interest, royalties, rental income and capital gains may be allocated differently. We assess which country may tax the income, whether Spain must provide an exemption or foreign tax credit, and what documentation is needed to support the treatment.
Foreign assets and information reporting
Tax residents may need to report certain assets located outside Spain. Depending on the circumstances, this may include foreign bank accounts, securities, investment funds, insurance products, real estate and cryptoassets. We determine whether Form 720, Form 721 or another filing applies, review valuation rules and coordinate the information with the annual income and wealth tax returns.
Wealth Tax and large-fortune exposure
We model potential exposure to Spanish Wealth Tax and the Temporary Solidarity Tax on Large Fortunes. The analysis considers tax residence, the location and ownership of assets, liabilities, exemptions, the autonomous community rules and the interaction between both taxes. For non-residents, the review focuses on assets and rights located or exercisable in Spain.
International inheritance and gift planning
Cross-border succession requires coordination between civil law, tax law and the rules of every relevant jurisdiction. We review the residence of the donor or deceased, the residence of the beneficiary, the location of the assets, regional reductions, existing wills, lifetime gifts and the risk of separate tax charges in different countries. Planning must preserve the client’s legal objectives rather than focus only on the lowest immediate tax bill.
Business owners, companies and permanent establishments
Entrepreneurs and shareholders may create Spanish tax consequences through management activity, personnel, premises, dependent agents or a change in the place from which a company is effectively directed. We review corporate residence, permanent establishment risks, remuneration, dividends, shareholder loans, transfer pricing, VAT and the tax treatment of a restructuring or exit.
Property investment and disposals in Spain
Property planning may involve Non-Resident Income Tax, rental taxation, imputed income, capital gains, the 3% withholding on a sale by a non-resident, local capital gains tax, Wealth Tax and succession taxes. We model these costs before purchase, rental, transfer or sale and coordinate the tax filings required after completion.
Our cross-border tax planning process
Step 1 - Initial fact-finding
We collect information about nationality, residence history, family, planned dates, income, assets, liabilities, entities and transactions.
Step 2 - Residence and treaty analysis
We assess Spanish domestic residence rules and, where necessary, the tie-breaker provisions of the relevant double taxation treaty.
Step 3 - Tax exposure map
We identify the Spanish taxes, foreign taxes, reporting forms and compliance deadlines that may apply.
Step 4 - Scenario modelling
We compare practical alternatives, including different transaction dates, ownership structures, remuneration methods or succession options.
Step 5 - Written recommendations
We explain the recommended approach, assumptions, risks, required documents and implementation sequence.
Step 6 - Implementation and filings
Where instructed, our team coordinates registrations, elections, returns, disclosures and communication with the Spanish Tax Agency.
Step 7 - Ongoing review
International circumstances change, so the plan is updated when the client moves, acquires or sells an asset, changes employment, restructures a company or prepares a gift or inheritance.
International tax planning before and after moving to Spain
The year of relocation often produces the highest risk because two tax systems may treat the same income, bonus, pension withdrawal, investment gain or company distribution differently. A pre-arrival review should establish the likely residence date, the source and timing of income, whether assets should be reorganised, and which evidence should be retained.
Confirm the expected Spanish residence year and examine treaty residence.
Register and file under the correct Spanish status.
Review salary, bonuses, equity compensation and pension payments.
Declare worldwide income and claim treaty relief where available.
Test eligibility for the Beckham Law and preserve the application deadline.
Coordinate Form 149, Form 151 and related employer documentation where applicable.
Review foreign companies, partnerships, trusts and management functions.
Monitor corporate residence, permanent establishment and attribution risks.
Map foreign assets and valuations.
Prepare Form 720, Form 721, Wealth Tax or Solidarity Tax filings when required.
Plan disposals, gifts, dividends and capital distributions.
Maintain evidence of acquisition values, foreign taxes and treaty positions.
Double taxation treaties - What they do and what they do not do?
Spain has an extensive network of bilateral double taxation treaties. These agreements allocate taxing rights and usually provide a mechanism to relieve double taxation. They do not automatically make foreign income tax-free, and they do not replace Spanish filing obligations.
The result depends on the type of income, the residence of the taxpayer, the source country, domestic legislation and the wording of the treaty in force.
Common treaty issues we review
- Employment performed in more than one country.
- Government, private and social security pensions.
- Directors’ fees and remuneration from foreign companies.
- Dividends, interest and royalties with withholding tax abroad.
- Rental income and capital gains from foreign property.
- Capital gains on shares, investment funds and business interests.
- Permanent establishment and business profits.
- Residence conflicts and tax authority certificates.
Common international tax planning mistakes
Most cross-border problems arise because a decision is implemented before its Spanish tax treatment is reviewed. Correcting the position later may require amended returns, interest, penalties or a dispute over residence and treaty relief.
- Assuming that fewer than 183 days in Spain automatically means non-residence.
- Believing that a double taxation treaty removes the obligation to declare foreign income in Spain.
- Taking a pension lump sum or selling investments immediately after moving without modelling Spanish taxation.
- Applying for the Beckham Law after the statutory deadline has expired.
- Failing to report foreign assets because they produced no income.
- Using a foreign company while managing it from Spain without reviewing corporate residence or permanent establishment risk.
- Transferring property or investments to relatives without analysing Spanish Gift Tax and capital gains consequences.
- Treating trusts, foundations or foreign entities according to their foreign label rather than their Spanish tax classification.
- Keeping inconsistent day-count, residence, banking and travel evidence.
Why choose Pellicer & Heredia for international tax planning?
Cross-border decisions frequently involve tax, immigration, property, corporate and succession law at the same time. Pellicer & Heredia brings these areas together within one multidisciplinary team, reducing the risk that a tax solution creates a legal, administrative or commercial problem elsewhere.
A coordinated legal and tax approach
Our advisors work with the firm’s lawyers and administrative professionals to align the tax analysis with residence permits, property transactions, company structures, wills, inheritances and Spanish filing obligations.
Advice designed for international clients
We regularly assist residents and non-residents whose income, assets and family relationships extend beyond Spain. Advice is presented clearly, with defined actions, deadlines and supporting documents, so clients can coordinate with advisors in their home country.
Planning followed by implementation
A written plan is useful only when it can be implemented. Where required, we support registrations, tax elections, annual returns, non-resident filings, foreign asset reports and communication with the Spanish Tax Agency.
Frequently Asked Questions
What is international tax planning?
International tax planning is the advance review of tax residence, income, assets, companies and transactions that involve more than one country. The purpose is to apply domestic law and double taxation treaties correctly, use available reliefs or special regimes, complete the required disclosures and avoid unnecessary double taxation. Lawful planning is based on transparent facts and documented transactions; it is not the concealment of income or assets.
When should I obtain international tax advice before moving to Spain?
Advice should ideally be obtained before the calendar year in which you expect to move. The timing of employment income, bonuses, share awards, pension withdrawals, dividends, property sales and investment gains can affect the Spanish result. An early review also allows time to assess treaty residence, organise evidence, evaluate the Beckham Law and identify foreign asset reporting obligations before deadlines begin.
What is the Beckham Law and who should review it?
The Beckham Law is the common name for the special tax regime in Article 93 of the Spanish Personal Income Tax Law. Eligible individuals who move to Spain may elect to be taxed under special non-resident rules for the year of arrival and the following five tax years. Eligibility, income type and the six-month application deadline should be reviewed before relying on the regime.
Can I legally reduce tax by changing the date of a transaction?
Timing can lawfully affect which country taxes a transaction, the applicable residence year, the use of losses, the availability of exemptions or the reporting period. However, the transaction must have genuine legal and economic effect, and residence cannot be changed merely on paper. A timing strategy should be based on documented facts and reviewed before contracts, disposals or distributions are completed.
How do I know whether I am tax resident in Spain?
Under Spanish domestic rules, you may be tax resident if you spend more than 183 days in Spain during the calendar year, if the main centre or base of your economic interests is in Spain, or under a rebuttable family presumption involving a spouse and dependent minor children. When another country also treats you as resident, the applicable double taxation treaty must be reviewed.
Can I be tax resident in Spain and another country at the same time?
Yes. Two countries can initially treat the same person as resident under their domestic laws. Where a double taxation treaty exists, its tie-breaker rules may resolve the conflict by examining matters such as a permanent home, centre of vital interests, habitual abode and nationality. The result must be analysed under the specific treaty rather than assumed from the day count alone.
Does a double taxation treaty mean that I only file tax in one country?
No. A treaty allocates taxing rights and provides relief from double taxation, but it does not normally remove all filing obligations. You may need to declare the same category of income in both countries and then claim an exemption or foreign tax credit in the country required to provide relief. Separate information returns may also apply even where no additional tax is payable.
Will Spain tax my worldwide income after I move?
Spanish tax residents are generally subject to Personal Income Tax on worldwide income, subject to special regimes and treaty rules. This can include foreign salary, pensions, dividends, interest, rental income and capital gains. Each item must be classified under Spanish law, converted where necessary and coordinated with tax already paid abroad so that the available double taxation relief can be claimed correctly.
Are foreign pensions taxed in Spain?
The treatment of a foreign pension depends on the type of pension, the country of source, the taxpayer’s residence and the applicable double taxation treaty. Private pensions, social security pensions and government-service pensions may follow different rules. Before taking a lump sum or changing the payment method, the Spanish classification and the treaty article should be reviewed.
Do I have to report bank accounts and investments outside Spain?
Spanish tax residents may have information-reporting obligations for assets held abroad. Form 720 may apply to specified categories such as foreign accounts, securities and real estate when the relevant thresholds and conditions are met. Form 721 may apply to certain cryptoassets held with foreign custodians. These filings are separate from annual income and wealth tax returns and require consistent valuations.
Can Spain charge Wealth Tax on assets located abroad?
Spanish tax residents may be exposed to Wealth Tax on worldwide net assets, subject to exemptions, allowances and autonomous community rules. Non-residents are generally assessed on qualifying Spanish assets and rights. The Temporary Solidarity Tax on Large Fortunes may also apply above its statutory threshold. Ownership, debt deductibility, business exemptions and the regional position should be modelled each year.
Does Spain tax my foreign company if I manage it from Spain?
A foreign-incorporated company can create Spanish tax exposure if its effective management is exercised from Spain or if its activities create a Spanish permanent establishment. Relevant factors include where strategic decisions are made, where directors work, where contracts are concluded, and whether personnel or premises are available in Spain. The shareholder’s salary, dividends and loans also require separate analysis.
Can a US LLC, UK limited company or foreign partnership be treated differently in Spain?
Yes. Spain does not automatically follow the classification used in the entity’s home country. A foreign LLC, partnership, trust or other vehicle must be analysed by reference to its legal characteristics and Spanish tax rules. A mismatch can affect attribution of income, corporate taxation, dividend treatment, foreign tax credits and reporting. Entity classification should be reviewed before distributions or restructuring.
Do non-residents need international tax planning for Spanish property?
Yes. A non-resident owner may face Spanish Non-Resident Income Tax on rental income or imputed income, capital gains tax on sale, a 3% withholding when selling Spanish property, local taxes, Wealth Tax and succession taxes. The tax treaty and the owner’s country of residence may also affect foreign relief. Planning is useful before purchase, letting, gifting, inheritance or sale.
How are inheritances and gifts taxed when several countries are involved?
Cross-border inheritances and gifts may trigger tax in Spain and another country because of the residence of the deceased, donor or beneficiary, or the location of the assets. Spanish rules also vary by autonomous community. The analysis should coordinate tax residence, asset situs, treaty or unilateral relief, wills, lifetime transfers and filing deadlines so that legal ownership and tax reporting remain consistent.
What documents are needed for an international tax planning review?
Useful documents normally include passports and residence certificates, travel history, employment and company agreements, recent tax returns, payslips, pension statements, bank and investment reports, property deeds, mortgage details, company accounts, trust or foundation documents, wills and information about planned transactions. The exact list depends on the jurisdictions and the decision being analysed.
Can Pellicer & Heredia coordinate with my accountant or tax advisor abroad?
Yes. Cross-border planning is usually more reliable when Spanish advice is coordinated with the professional responsible for the other jurisdiction. With the client’s authority, we can explain the Spanish treatment, identify the treaty questions, request supporting figures and align filing positions. Each advisor remains responsible for advice in their own jurisdiction.
How often should an international tax plan be reviewed?
A plan should be reviewed whenever there is a material change and at least annually for clients with complex international affairs. Relevant changes include moving country, starting or ending employment, receiving equity compensation, buying or selling property, changing company management, making a gift, receiving an inheritance, taking pension benefits or acquiring significant new assets.
Make your cross-border decisions with the tax position already mapped
Tell us where you live, which countries are involved and what you are planning to do. Our international tax team will identify the Spanish tax issues, the relevant treaty provisions and the steps that should be taken before the transaction or relocation proceeds.