Spanish Income Taxes for American “Non-Resident” in Spain?

Hi everybody,

I have a few questions. I am currently an auxiliar de conversacion in Madrid, and this is an official government grant so this is exempt from income taxation. I came to Madrid in September 2010. With this program, I have a NIE estudiante.

However, I also work at a non-profit, and I am hired as a non-resident contractor from the USA. I had to provide a certificate of fiscal residence, certifying that I have filed income taxes abroad (in the US) to be considered a non-resident contractor. My work told me that if I could not provide this document, they would have to tax my earnings at 24%. But since I got the document from the IRS and gave it to them, they said they could pay me the pure rate of earnings without taking out any taxes.

In this situation, would I have to file an income tax return to the Spanish government? How much taxes would be taken out?

Another question, in the US I have an ING Direct Orange Savings Account, however, they only let you link US bank accounts and deposit US dollars. Now, I would like to open one in Spain so that I could start saving and earning interest on my Euros: http://www.ingdirect.es/ They currently have an attractive offer of 3.30% interest for new clients for their first 4 months, which is really cool. In the US, I have to report my interest income earned on my income tax return. So IN SPAIN, do I have to do the same thing? How would I do this?

Any advice would be appreciated as I want to make sure I am doing everything properly!

Hello,

You do not have to declare any income nor pay taxes as you ar on a student visa and not a residence permit, but as you said in a non profit organization. You are a temporal resident. As you have provided with the IRV certificate that indicates you are a fiscal resident in another country, you will not be requested to pay Taxes in Spain.

In relation to the question about the ingdirect bank account, you can only open a non-resident account, and check with the bank if you can still enjoy the offer.

Regards,