Do Russian Citizens Pay Taxes in Spain?
✅ Yes — if you become a tax resident in Spain, you are required to declare your worldwide income, including:
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Russian bank accounts
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Rental income from Russian property
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Pensions, dividends, and investments
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Crypto or real estate gains
Understanding when you become a Spanish tax resident, what you must report, and how to avoid double taxation with Russia is critical.
📍 Who Qualifies as a Spanish Tax Resident?
According to Spanish law, you are a tax resident if any one of the following applies:
| Criteria | Explanation |
|---|---|
| 📆 You spend 183+ days in Spain | Within a calendar year |
| 💼 Your main economic interests are in Spain | Includes business, clients, or investments |
| 👨👩👧 Your family (spouse/children) resides in Spain | Automatically triggers residency unless proven otherwise |
⚠️ Tax residency is not the same as your immigration visa — you can be a non-lucrative or student visa holder and still be fiscally resident if you meet these conditions.
💶 Spanish Taxes Russian Nationals May Owe
1️⃣ Personal Income Tax (IRPF)
Once you’re a tax resident, Spain will tax your worldwide income on a progressive scale:
| Income Bracket (EUR) | Tax Rate |
|---|---|
| Up to €12,450 | 19% |
| €12,451 – €20,200 | 24% |
| €20,201 – €35,200 | 30% |
| €35,201 – €60,000 | 37% |
| Over €60,000 | 45–47% (region dependent) |
✅ This includes income from Russia such as:
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Pensions
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Rental income
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Dividends and royalties
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Business income (freelance or company dividends)
2️⃣ Modelo 720 – Foreign Asset Reporting
If you’re a tax resident and hold over €50,000 in foreign assets, you must file the Modelo 720 by March 31 each year.
| What Must Be Declared | Examples for Russians |
|---|---|
| Bank accounts | Accounts at Sberbank, Tinkoff, VTB, etc. |
| Real estate | Apartments, land, dachas in Russia |
| Investments | Stocks, crypto, life insurance |
🚨 Non-declaration used to trigger massive fines. Rules are now softened but penalties still apply if there’s fraud or concealment.
3️⃣ Wealth Tax (Impuesto sobre el Patrimonio)
Applies to total net assets above €700,000, with some regional exemptions.
| Asset Level | Rate |
|---|---|
| €700,000 – €2 million | 0.2%–0.5% |
| €2M – €10M+ | Up to 2.5% |
Includes global assets, such as property or investments in Russia.
✅ Spanish tax residents who are high-net-worth individuals should seek advance planning to manage this exposure.
4️⃣ Capital Gains Tax
Selling Russian assets (real estate, crypto, stocks) while residing in Spain? The gain is taxable in Spain.
| Capital Gain | Tax Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001 – €50,000 | 21% |
| €50,001 – €200,000 | 23% |
| Over €200,000 | 26% |
✅ We help structure sales legally to avoid double taxation or penalties.
🌍 Spain–Russia Double Taxation Treaty
Spain and Russia signed a Double Taxation Agreement (DTA) that remains in effect.
What it does:
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Avoids taxing the same income twice
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Assigns taxing rights for pensions, dividends, royalties
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Allows you to deduct taxes already paid in Russia
📄 You’ll need:
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Official Russian tax certificates (translated to Spanish)
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Full supporting documentation
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Proof of payment and source of funds
🧑⚖️ Borderless Lawyers prepares your filings to ensure full compliance and treaty benefits.
🏘️ Taxes on Property Ownership in Spain
Even if you’re not a resident, owning property in Spain as a Russian national brings tax responsibilities:
| Tax | Description |
|---|---|
| IBI (Municipal tax) | Annual property tax based on cadastral value |
| Basura | Rubbish collection tax (local) |
| Community fees | For shared buildings or developments |
| Non-resident income tax | Applies to rental income (flat rate 24%) |
✅ We file these taxes on your behalf and ensure you never miss a deadline.
⚠️ Common Mistakes Russian Nationals Make
| Mistake | Risk |
|---|---|
| Ignoring tax residency status | Triggers audits and penalties |
| Not declaring Russian assets | Modelo 720 penalties |
| Assuming Russia tax payments are enough | Spain still may require top-up taxes |
| Using non-compliant bank transfers | Can freeze purchase or trigger AML investigation |
| Believing immigration status = tax status | They are legally separate |
✅ With our bilingual team, we resolve confusion and proactively manage your risks.
👩⚖️ How Borderless Lawyers Supports Russian Taxpayers
✔️ Tax residency assessment
✔️ Filing Modelo 720 and annual returns
✔️ Capital gains calculation
✔️ Double taxation relief planning
✔️ Crypto, real estate, and foreign company compliance
✔️ Coordination with Russian accountants and sworn translators
📌 All services are available remotely, with representation via Power of Attorney if needed.
📞 Call to Action
Confused about Spanish tax rules as a Russian citizen?
We help high-net-worth individuals, retirees, remote workers, and families stay fully compliant — and tax efficient.