If you’re a Turkish citizen living in Spain or planning to relocate, it’s essential to understand your tax obligations. Spain has specific residency rules that determine when and how you must declare your global income, including income or assets held in Turkey.
In this guide, we’ll break down:
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When you become a tax resident in Spain
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Which taxes Turkish nationals must pay
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How to avoid double taxation with Turkey
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The role of the Modelo 720 for foreign assets
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How Borderless Lawyers can protect you from costly mistakes
📍 When Are Turkish Citizens Tax Residents in Spain?
You become a Spanish tax resident if any one of the following applies:
| Criteria | Description |
|---|---|
| 📆 183+ days in Spain | You spend more than 183 days in a calendar year |
| 💼 Economic center in Spain | Your main business, employment, or income is in Spain |
| 👨👩👧 Family lives in Spain | Your spouse and dependent children reside in Spain |
✅ If you are a tax resident, you must declare your worldwide income — including income, properties, or bank accounts in Turkey.
🧾 Key Taxes Turkish Residents Must Pay in Spain
1️⃣ Income Tax – IRPF (Impuesto sobre la Renta de las Personas Físicas)
Taxed on all personal income globally:
| Type of Income | Examples |
|---|---|
| Employment | Salary from a Spanish or Turkish employer |
| Real estate | Rental income from property in Turkey or Spain |
| Pensions | Turkish government or private pensions |
| Dividends / interest | Turkish bank accounts or investments |
| Capital gains | Sale of real estate or shares |
| Annual Income (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% (depending on region) |
🧮 We help you calculate exact tax liabilities based on your province of residence.
2️⃣ Modelo 720 – Declaration of Foreign Assets
All Spanish tax residents must report overseas assets worth more than €50,000 using the Modelo 720.
| Asset Type | Examples from Turkey |
|---|---|
| Bank accounts | Ziraat Bankası, Garanti BBVA, Halkbank |
| Real estate | Apartments, land, commercial units |
| Investments | Stocks, mutual funds, life insurance |
⏰ Deadline: 31 March (for previous tax year)
❗Penalties for non-compliance used to be severe — now reduced, but still significant if fraudulent intent is detected.
3️⃣ Wealth Tax (Impuesto sobre el Patrimonio)
Applies to high-net-worth individuals:
| Total Net Assets | Tax Rate |
|---|---|
| Over €700,000 (excluding €300k home exemption) | 0.2%–2.5% (varies by region) |
✅ Assets in Turkey count toward this threshold. You may be liable even if your wealth is abroad.
4️⃣ Capital Gains Tax
If you sell a property, shares, or crypto in Turkey while resident in Spain, you must pay capital gains tax:
| Gain Amount | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001 – €50,000 | 21% |
| €50,001 – €200,000 | 23% |
| €200,001+ | 26% |
Example: If you sell a flat in Istanbul for a profit while living in Spain, the gain is taxable in Spain.
🌍 Turkey–Spain Double Taxation Agreement
✅ Turkey and Spain have a tax treaty to avoid double taxation.
This means:
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If you already paid taxes on income in Turkey, you can deduct that from your Spanish tax bill (with proper documentation)
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The treaty defines which country has taxing rights over income types like pensions, dividends, royalties, etc.
📌 To apply this benefit, you’ll need Turkish tax certificates translated into Spanish.
🏠 Annual Property Taxes in Spain
If you buy property in Spain (even as a non-resident), you’ll face these local taxes:
| Tax | Description |
|---|---|
| IBI (Property Tax) | Paid annually to local municipality |
| Basura (Garbage Collection Fee) | Often included in IBI or paid separately |
| Community Fees | For shared buildings or developments |
These apply whether or not you rent the property.
⚠️ Common Mistakes by Turkish Citizens in Spain
| Mistake | Risk |
|---|---|
| Assuming you don’t owe taxes in Spain if you pay in Turkey | May still owe in Spain as resident |
| Ignoring foreign assets | Leads to Modelo 720 penalties |
| Not declaring Turkish rental income | Tax evasion risk |
| Believing pension income is tax-free | Often taxable under Spanish law |
| Confusing residency permit with tax residency | Not the same – tax is based on presence & income |
✅ We help you distinguish immigration status from fiscal status and avoid legal trouble.
👩⚖️ How Borderless Lawyers Supports Turkish Nationals
✔️ Tax residency analysis: Are you a Spanish tax resident?
✔️ Income reporting guidance (TR + ES)
✔️ Modelo 720 preparation and filing
✔️ Wealth tax calculation and risk review
✔️ Capital gains planning for Turkish asset sales
✔️ Double taxation relief application
✔️ Coordination with Turkish accountants, translators, and notaries
All services available remotely and in English or Turkish.
📞 Call to Action
Are you a Turkish citizen living in Spain or planning to move?
We’ll make sure you stay 100% compliant with Spanish tax law — and avoid penalties or surprises.