[Martin Meijer]

Hello,

I am considering moving to Spain. I have money in a bank. When I become resident in Spain and live off the capital, do I have to pay income tax? Or would I only have to pay tax on the interest earned? Thank you

[Mark Stücklin]

Hello Martin,

You would need to consult a fiscal expert to be sure, but I think you’ll find that you pay income tax on your world-wide (declared) income if you are tax resident in Spain. That means tax on the interest income, not the capital, though there is also a wealth-tax (patrimonio) to pay on your net wealth above €700,000.

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