Taxes in Spain are levied by national (federal), regional and local governments. A wide range of taxes are levied on different sources, the most important ones being income tax, corporate tax, value added tax; some of them are applied at national level and others at national and regional levels. Most national and regional taxes are collected by the Agencia Estatal de Administración Tributaria which is the bureau responsible for collecting taxes at the national level.

Other minor taxes like property transfer tax (regional), real property tax (local), road tax (local) are collected directly by regional or local administrations.

The tax year in Spain follows the calendar year (1st January to 31st December). The tax collection method depends on the tax; some of them are collected by self assessment, but others (i.e. income tax) follow a system of PAYE with monthly withholdings that follow a self assessment at the end of the term.

You will become liable for tax as a resident of Spain if:

• a) You spend more than 183 cumulative days in one calendar year in Spain. Or
• b) Your centre of economic interests is in Spain, i.e. the base for your economic or professional activities is in Spain or
• c) Your centre of vital interests is in Spain, i.e. your spouse lives in Spain and you are not legally separated, and/or your dependent minor children live in Spain.

As a resident of Spain you will be liable for tax on your worldwide income at scale rates after any available allowances and deductions.