Do Colombians Living in Spain Pay Taxes?
✅ Yes — once you become a Spanish tax resident, you are taxed on your worldwide income, including earnings, pensions, property, and investments from Colombia or elsewhere.
Even if your income originates in Colombia, you may still be legally required to declare it in Spain.
📍 When Do Colombians Become Tax Residents in Spain?
You are considered a tax resident in Spain if you meet any of the following conditions in a calendar year:
| Condition | Details |
|---|---|
| 🗓️ You spend over 183 days in Spain | Not necessarily consecutive |
| 💼 Your main economic interests are in Spain | Work, business, or investments |
| 👨👩👧 Your spouse or minor children live in Spain | Presumption of residency applies |
❗ Even with a non-lucrative visa or student visa, you can still become tax resident if you stay over 183 days.
💶 What Taxes Do Colombian Tax Residents in Spain Pay?
1️⃣ Personal Income Tax (IRPF)
Applies to all income — from Spain or abroad — if you’re tax resident.
| 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 | Up to 47% (depends on region) |
Examples of taxable Colombian income:
-
Salary or freelance income
-
Pension payments
-
Dividends from Colombian companies
-
Rent from properties in Bogotá, Medellín, or Cali
✅ Spain has a double tax treaty with Colombia — you can usually deduct tax already paid there.
2️⃣ Capital Gains Tax
Capital gains from selling real estate, stocks, or crypto are taxed in Spain if you’re tax resident.
| Gain Amount | Tax Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001–€50,000 | 21% |
| €50,001–€200,000 | 23% |
| Over €200,000 | 26% |
💡 Even if the sale was in Colombia, you may still owe Spanish tax if you’re tax resident at the time.
3️⃣ Wealth Tax (Impuesto sobre el Patrimonio)
If your net worth exceeds €700,000, you may owe annual wealth tax.
| Net Wealth | Approx. Rate |
|---|---|
| €700,000–€2 million | 0.2%–0.5% |
| €2M–€10M | 1%–1.5% |
| Over €10M | Up to 2.5% |
Included Assets:
-
Colombian real estate
-
Bank accounts
-
Stocks, bonds
-
Crypto and foreign investments
🧾 You can deduct a €300,000 exemption for your main residence (if in Spain).
4️⃣ Modelo 720 – Foreign Asset Declaration
Spanish tax residents must declare foreign assets worth over €50,000, including:
| Asset Type | Colombian Example |
|---|---|
| Bank Accounts | Bancolombia, Davivienda, etc. |
| Real Estate | Apartments or homes in Colombia |
| Investments | Stocks, crypto, or company shares |
📅 Filing Deadline: March 31 each year
💸 Penalties for non-compliance can be severe if declared late or inaccurately
✅ We help Colombian clients file Modelo 720 correctly and on time.
5️⃣ Inheritance & Gift Tax
Applies to assets or money received from Colombia while you live in Spain.
📌 The rate varies depending on:
-
Relationship to the donor
-
Region of residence
-
Value of the assets
💡 We help optimize your cross-border gifts or inheritances to avoid double taxation.
🌐 Spain–Colombia Double Taxation Treaty
Spain and Colombia have a bilateral tax treaty, allowing:
-
Tax paid in Colombia to be deducted in Spain
-
Defined rules for pensions, salaries, and dividends
-
Avoidance of double taxation on most income types
📌 You’ll need:
-
A Colombian tax certificate
-
Translations and supporting documents
-
Proper coordination of deadlines
✅ Borderless Lawyers ensures you claim all treaty benefits lawfully.
🏡 Do I Owe Taxes If I Only Own Property in Spain?
Even if you’re not a tax resident, as a Colombian property owner in Spain you must pay:
| Tax | Notes |
|---|---|
| IBI | Annual municipal tax |
| Garbage Tax | Based on local municipality |
| Wealth Tax | For high-value property |
| Non-Resident Income Tax | 19%–24% on rental income or presumed benefit |
We help non-resident Colombians manage annual tax filings and avoid legal surprises.
❌ Common Mistakes by Colombians in Spain
| Mistake | Risk |
|---|---|
| Not declaring foreign assets | Modelo 720 penalties |
| Assuming Colombia income is exempt | It’s taxable in Spain if you’re resident |
| Waiting until the end of the year | Missed filings or poor planning |
| Ignoring wealth or gift taxes | Unexpected fines or audits |
| Using non-lawyer advisors | Errors with international documents |
✅ Our bilingual tax lawyers make sure you’re fully protected.
👩⚖️ How Borderless Lawyers Helps Colombians with Spanish Tax Compliance
✔️ Assess whether you qualify as a Spanish tax resident
✔️ File Spanish income tax and capital gains
✔️ Prepare and file Modelo 720
✔️ Apply double taxation relief properly
✔️ Report crypto, real estate, and pensions
✔️ Wealth tax strategies for HNW clients
✔️ Full legal and tax planning in Spanish and English
From Bogotá to Barcelona, we have you covered.
📞 Call to Action
Are you a Colombian living in Spain or planning to relocate?
Let Borderless Lawyers help you handle taxes, reporting, and international compliance with confidence.