Income tax returns for foreign residents in Ibiza

Living and paying tax in Ibiza

Ibiza's seasonal economy means many residents have irregular income, several employers or both employment and self-employment in the same year. New arrivals who come to work may qualify for the Beckham regime if they apply within six months. And with Ibiza's property prices, residents who own their home can reach the wealth tax thresholds sooner than they expect.

What goes into your Spanish return

Item	What we check
Foreign pensions and salaries	Which country taxes them under the treaty
Dividends, interest, gains	Savings scale and foreign tax credit
Rental income	Expenses and reductions
Joint or individual	We compare both every year
Modelo 720 and wealth tax	Thresholds and filing

How we prepare your return

Before the campaign we collect your foreign and Spanish documents, explain the result in English or German and only file once you have approved it. We also keep the calendar for the modelo 720 and wealth tax, and answer any letter from the tax agency about your return.

Our general service page explains the rules in more detail: Income tax return in Spain. We also advise in Mallorca, Menorca.

An illustrative example

Based on situations we commonly see; not a specific client. An Italian event producer resident in Ibiza had a Spanish salary in summer and freelance income from abroad in winter. We combined both in his return, applied the foreign tax credit and set up his quarterly payments for the next year.

This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.