TAXATION SYSTEM FOR UKRAINIANS IN SPAIN

Taxation for Ukrainians in Spain depends on whether they are tax residents of Spain.

Tax residents of Spain

Tax residents of Spain are considered to be persons who stay in Spain for at least 183 days during a calendar year.

They also include persons who have not been in Spain for 183 days but have a permanent place of residence or a center of vital interest in Spain.

Tax residents of Spain are required to pay taxes on all their income, both in Spain and abroad.

The main taxes paid by tax residents of Spain are:

• Income tax (IRPF)
• Value Added Tax (IVA)
• Property Tax (IBI)
• Inheritance and Gift Tax (ISD)

Income tax

Income tax in Spain is calculated progressively, depending on the amount of income. Tax rates range from 19% to 45%.

For Spanish tax residents who are individuals, there are several tax scales, depending on the source of income:

• The scale of taxation of wages
• Scale of taxation of business income
• The scale of property income taxation
• Scale of taxation of income from investments

VAT

Value-added tax in Spain is 21% for most goods and services. Lower rates are set for some goods and services: 10%, 4% or 0%.

Real estate tax

Property tax in Spain is paid by property owners. Tax rates depend on the autonomous community in which the property is located.

Inheritance and gift tax

Inheritance and gift tax in Spain is paid by the heirs or donors. Tax rates depend on the degree of kinship between heirs or donors and heirs.

Here are examples of what taxes Ukrainians can pay in Spain:

• A Ukrainian working in Spain for hire receives a monthly salary of 2,000 euros. He is obliged to pay an income tax of 380 euros (19% of 2000 euros).
• A Ukrainian who is an entrepreneur in Spain receives a monthly income of 3,000 euros. He is obliged to pay an income tax of 900 euros (30% of 3000 euros).
• A Ukrainian who owns real estate in Spain valued at 100,000 euros is required to pay real estate tax for 2,100 euros (2.1% of 100,000 euros).

Important: It should be noted that these are only examples, and the specific amount of tax that a Ukrainian must pay in Spain depends on many factors, such as the amount of income, source of income, place of residence, and others.

Non-residents of Spain

Non-residents of Spain are required to pay taxes only on income received in Spain.

The main taxes paid by non-residents of Spain:

• Income Tax (IRNR)
• Value Added Tax (IVA)
• Property Tax (IBI)

Income tax

Income tax for non-residents of Spain is calculated on a different scale than for tax residents. Tax rates range from 24% to 47%.

VAT

Non-residents of Spain who do business in Spain are required to pay value-added tax. It is not variable.

Real estate tax

Non-residents of Spain who own real estate in Spain are required to pay real estate tax.

Special benefits for Ukrainians

Ukrainians who have received temporary protection in Spain are entitled to some tax benefits.

In particular, they are exempt from paying income tax on income received in Ukraine.

Currently, Ukrainians are exempt from paying inheritance and gift taxes. This benefit applies to Ukrainians who are heirs or donors of property in Spain.

Also, Ukrainians may not pay real estate tax. This benefit applies to Ukrainians who own real estate in Spain, which is their main place of residence.

To receive benefits, Ukrainians must contact the tax service of Spain and provide the necessary documents confirming their temporary protection status.