Taxes in Spain for Non-lucrative visa holders

I am planning to get a non-lucrative visa and live in Spain...but my main concern is long term taxation in Spain if I decided to settle down there and make it my base.

I am an Indian citizen and earn in excess of 100k euros a year from Investment income. I pay full taxes on my income in India. I also own assets worth in excess of 1 million euros...and may in future inherit more assets in India.

1) If I spent most of my time living in Spain while earning out of other countries through investment income - then will I be taxed at all in Spain on my worldwide income???

2) Do I have to pay any social charges / taxes in spain if I am not earning any income in Spain at all???

3) Is there a wealth tax in Spain on worldwide assets?

4) If I die while resident in spain then are my assets overseas subject to any Spanish inheritance taxes? I find it morally wrong to pay any tax even after my death to the Spanish government for assets acquired before I moved to Spain just for living a few years in Spain.

5) Lastly, if I inherit further assets in my country AFTER, I become resident in spain - then do I have to pay any tax on my new inheritance at all?

And the absolute last question - If I only spend 183 days a year in Spain - then do I need to file or declare any taxes at all? If that solves all my problems then i'd rather just spend 6 months in spain and the rest in other countries.

Muchos Gracias!!!

Hello Globetrot,

Please see the replies to your queries below:


1) If you attain residency ( fiscal residency if you spend more the 183 days per year in Spain ) you will pay your worldwide income tax in Spain- I understand India and Spain signed a Treaty to avoid double taxation, in the event you pay taxes in India for your assets there.

2) No, if you do not generate income in Spain, you do not have to pay Seguridad Social.


3) Not as such, though you are liable for the Wealth Tax, regulated by the Ley 19/1991, 6th June, del Impuesto sobre el Patrimonio y en su modificación de 2011. that is a tax levied on the net assets that each person has on 31st December each year, regardless of the location of the assets or rights. Therefore, as a fiscal resident in Spain, you are obliged to pay tax on the assets located in Spain as well as those abroad.

4) No, IHT only applies for assets in Spain.

5) No.

6) You will pay taxes if you become a resident; if your intention is to spend less than 183 days in Spain, you do not need to become a resident, as you won´t even qualify for it.

Regards,