Do Chinese Citizens Pay Taxes in Spain?
✅ Yes — if you live in Spain long enough to become a tax resident, you are taxed on your worldwide income, including:
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Chinese salaries, business income, pensions
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Dividends and rental income from China
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Assets like real estate or company shares
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Crypto, investments, or bank accounts
Even if your income is from China, you still owe tax in Spain if you meet residency thresholds.
📍 When Do You Become a Tax Resident in Spain?
You are considered a Spanish tax resident if any of the following apply:
| Condition | Description |
|---|---|
| 🗓️ You spend more than 183 days in Spain in a calendar year | Most common trigger |
| 🧑💼 Your main economic interests are in Spain | Business, investments, or employment |
| 👨👩👧 Your spouse or minor children live in Spain | Family tie triggers presumption of residency |
✅ Even without a work visa, you can become tax resident by living in Spain under a student, retirement, or digital nomad visa.
💶 What Taxes Do Chinese Nationals Pay in Spain?
1️⃣ Income Tax (IRPF)
If you are a tax resident, Spain taxes your worldwide income using progressive rates:
| Income Bracket (EUR) | Tax Rate |
|---|---|
| €0 – €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) |
Examples of taxable income:
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Salary from a Chinese company (remote workers)
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Rent from apartments in Beijing, Shanghai, or Shenzhen
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Dividends from Chinese companies
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Profits from property sales or stocks
2️⃣ Capital Gains Tax (Worldwide)
Selling Chinese assets while living in Spain? Capital gains are taxable:
| Capital Gain | Tax Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001–€50,000 | 21% |
| €50,001–€200,000 | 23% |
| Over €200,000 | 26% |
✅ Spain taxes gains made while you’re tax resident — even from China.
3️⃣ Wealth Tax (Impuesto sobre el Patrimonio)
If your global net assets exceed €700,000, you may owe wealth tax:
| Wealth Value | Rate |
|---|---|
| €700,000–€2M | 0.2%–0.5% |
| €2M–€10M | Up to 1.5% |
| Over €10M | Up to 2.5% |
📌 Includes real estate, savings, stocks, and property in China or Hong Kong.
4️⃣ Modelo 720 – Foreign Asset Declaration
Spanish tax residents who own over €50,000 in foreign assets must file the Modelo 720 every year by March 31.
| Asset Type | Examples for Chinese Nationals |
|---|---|
| Bank accounts | ICBC, Bank of China, CCB, etc. |
| Real estate | Homes in Shanghai, Guangzhou, etc. |
| Investments | Shares in Chinese or global firms, crypto wallets |
🚨 Non-compliance can result in serious penalties if the omission is considered intentional.
✅ Borderless Lawyers helps file your Modelo 720 safely and legally.
5️⃣ Inheritance & Gift Tax
If you receive money or property from China while living in Spain, Spanish tax may apply — depending on the value and your residency.
📝 We guide clients in structuring gifts or inheritances to avoid double taxation.
🌐 Spain–China Double Taxation Treaty (DTT)
Spain and China have signed a Double Taxation Agreement, which allows:
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Tax paid in China to be credited in Spain
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Rules to determine where income is taxable
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Protections against double taxation on dividends, pensions, etc.
📌 You’ll need:
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Proof of tax paid in China (official certificate, translated)
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Documentation for income source
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Coordination of deadlines in both countries
✅ We help secure treaty benefits and avoid overpayment.
🏡 What If You Only Own Property in Spain?
Even if you’re not a tax resident, owning property in Spain means you owe:
| Tax | Description |
|---|---|
| IBI | Annual local property tax |
| Basura | Garbage collection fee |
| Wealth tax | On high-value homes |
| Non-resident income tax | Flat 24% on rental income from Spanish tenants |
📌 Our tax team handles non-resident filings for Chinese clients globally.
❌ Common Mistakes Chinese Clients Make
| Mistake | Result |
|---|---|
| Not understanding tax residency | Unexpected liability |
| Ignoring Modelo 720 | Fines or future audits |
| Assuming income from China is tax-free | It’s taxable in Spain if you’re resident |
| Waiting until the end of the year | Missed filings and poor tax planning |
| Relying only on agents, not tax lawyers | Incomplete or risky advice |
✅ We provide strategic, bilingual tax planning for full peace of mind.
👩⚖️ How Borderless Lawyers Helps Chinese Clients
✔️ Tax residency determination
✔️ Filing Spanish income tax and Modelo 720
✔️ Double taxation treaty application
✔️ Wealth tax planning for HNWIs
✔️ Crypto and capital gains declarations
✔️ Inheritance structuring and reporting
✔️ Mandarin- and English-speaking tax experts
We simplify cross-border tax compliance — no matter how complex your profile is.
📞 Call to Action
Are you a Chinese citizen living in Spain or planning to move?
Let our international tax lawyers help you stay compliant, avoid penalties, and optimize your global income legally.