Spain

Summary

Spain is an EU country bordered by France, Portugal and Andorra, located in Western Europe. It has a vibrant economy in which international contractors, or freelancers, are in high demand, particularly in Madrid and Barcelona. Numerous large corporations have chosen to base their headquarters in Spain and English is widely spoken. Spain is especially popular with expats due to the climate and inexpensive cost of living.

Many mechanisms to operate tax use, depending on your personal circumstances, are available. Non-residents taxpayers can choose to either pay a flat rate of tax or be taxed as if resident. If you choose the non-resident option then expenses cannot be claimed whereas if you are taxed as a resident you are able to deduct these.

Taxation

All residents of Spain are required to register their presence with the local authorities. As soon as you live in Spain for 183 days you may be considered to be resident in Spain for tax purposes from the date of your arrival. The tax year and the calendar year run from January to December.

Income tax and social security taxes in Spain are quite high but there are a number of allowances available. Tax law in Spain is straightforward.

It is always preferable for the first time resident in Spain to seek professional assistance before filing their tax returns.

The Contract Market

The majority of the contract market in Spain is based in Madrid and Barcelona although work is available throughout the country. A wide range of industries are catered for, but the majority of contract work is available in the fields of Oil and Gas, IT and Communications plus the banking and financial sectors.

Relocating to Spain

This is a wide range of good quality rental accommodation available in Spain although short term accommodation is difficult to acquire during the summer. Rental prices are quite high but the cost of living in the major cities is more than 20% lower than London.

There are many regions of Spain each of which have sizeable cultural differences, but each region has its own unique charm.

Traveling to Spain

Spain is accessible by air, land and sea. Flights route are among the most competitive in Europe with special offers to be had at off-peak times. There are also competitively priced rail links for those preferring to travel by land and there are numerous ports available for seafarers.