Do You Pay Taxes in Spain If You Don’t Work?

Understanding Your Tax Obligations as a Non-Working Resident
By SGM Abogados – Experts in Real Estate & Tax Law for Foreign Residents in Spain

Many of our clients—especially retirees, digital nomads, or individuals with passive income—often ask the same question: “If I don’t work in Spain, do I still have to pay taxes here?” The answer is not always straightforward. It depends on several factors, particularly your residency status and sources of income.

📍 Resident vs. Non-Resident: The Key Distinction

Spain’s tax system distinguishes clearly between residents and non-residents:

• Tax residents (those who spend more than 183 days in Spain during the calendar year or have their main economic interests here) are liable to pay tax on their worldwide income in Spain.

• Non-residents are only taxed on Spanish-sourced income, such as rental income from a property in Spain or gains from selling a Spanish asset.

So even if you’re not working or earning employment income, you might still be subject to taxes in Spain depending on what type of income you receive and where it comes from.

💶 Do You Have to File a Tax Return If You’re Not Working?

If you are a resident in Spain but have no job or business income, your tax situation depends on other types of income you might receive:

✅ YES, you must file if you receive:

• Pensions (public or private, Spanish or foreign) over certain thresholds

• Rental income from any property, even if modest

• Dividends, interest or capital gains, including from foreign investments

• Bank interest or investment income from overseas accounts

❌ NO, you might not have to file if:

• You have no income at all, or

• Your income is under the minimum threshold for filing (e.g., a single public pension under approx. €22,000/year from one payer)

• This is not applicable when you obtain incomes from another countries that are not subject to any retention. (even that is only one payer)

  -So for example, if you get only pensions or salaries that are not subject to any retention from the Spanish Tax office, then the limit is 15.876€

  -If you get only dividends or interests for more than 1.600€ then you have obligation

  -If you get pensions or salaries, or rental incomes and also interests, or dividends for example, for a total amount of 1.000€ then you have the obligation to submit the tax return.

However, even in cases where filing is not mandatory, it may be advisable to do so for legal clarity, especially when applying for residency renewals, buying property, or justifying your financial standing to Spanish authorities. More detailed information can be found HERE