Bilbao
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Tax Services
Sections
1. Overview of the Tax System in Spain
Spain has a decentralized tax system, meaning taxes are collected at three levels:
- National (State) Taxes: Managed by the Spanish Tax Agency (Agencia Tributaria or AEAT).
- Regional Taxes: Managed by the Basque Country’s tax authority (Diputación Foral de Bizkaia in Bilbao).
- Local Taxes: Managed by the Bilbao City Council (Ayuntamiento de Bilbao).
Bilbao, as part of the Basque Country, operates under a unique tax regime called the Concierto Económico, which gives the region autonomy to manage its own taxes. This means that residents of Bilbao file taxes with the Diputación Foral de Bizkaia rather than the national tax agency.
2. Categories of Taxes in Bilbao
Here are the main types of taxes you may encounter:
A. Income Tax (IRPF - Impuesto sobre la Renta de las Personas Físicas)
- Who Pays: Residents earning income in Spain or abroad.
- Rates: Progressive rates ranging from 23% to 49% in the Basque Country, depending on income.
- Filing Period: Typically from April to June for the previous tax year.
- Procedure: Residents file with the Diputación Foral de Bizkaia. Non-residents file with the Agencia Tributaria.
B. Non-Resident Income Tax (IRNR - Impuesto sobre la Renta de No Residentes)
- Who Pays: Non-residents earning income in Spain (e.g., rental income, business profits).
- Rate: Flat rate of 19% for EU/EEA residents and 24% for others.
C. Value-Added Tax (IVA - Impuesto sobre el Valor Añadido)
- Who Pays: Consumers of goods and services.
- Rates: Standard rate is 21%, with reduced rates of 10% (e.g., food, transport) and 4% (e.g., basic goods).
- Procedure: Businesses must register for IVA and file quarterly returns.
D. Property Tax (IBI - Impuesto sobre Bienes Inmuebles)
- Who Pays: Property owners in Bilbao.
- Rate: Varies based on the cadastral value of the property.
- Procedure: Paid annually to the Bilbao City Council.
E. Wealth Tax (Impuesto sobre el Patrimonio)
- Who Pays: Residents with net assets exceeding €800,000 (excluding €400,000 for primary residence).
- Rate: Progressive rates from 0.2% to 2.5%.
F. Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones)
- Who Pays: Beneficiaries of inheritances or gifts.
- Rate: Varies based on the relationship to the donor and the value of the inheritance.
G. Business Taxes
- Corporate Tax (Impuesto sobre Sociedades): 24% for most companies, with reduced rates for small businesses.
- Self-Employment Tax (Autónomos): Self-employed individuals must pay social security contributions and file quarterly income tax returns.
3. Procedures for Filing Taxes
A. For Residents
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Obtain a Tax Identification Number (NIF/NIE):
- Residents need a NIF (Número de Identificación Fiscal) or NIE (Número de Identificación de Extranjero) to file taxes.
- Apply at the local police station or immigration office.
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Register with the Diputación Foral de Bizkaia:
- Visit their website (www.bizkaia.eus) or their offices in Bilbao.
- Create an online account to access tax services.
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File Your Tax Return:
- Use the Diputación Foral de Bizkaia’s online platform or hire a gestor (tax advisor).
- Submit supporting documents (e.g., income statements, invoices, deductions).
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Pay Taxes:
- Payments can be made online, via bank transfer, or at local banks.
B. For Non-Residents
- File taxes with the Agencia Tributaria using Form 210 for income earned in Spain.
- Payments can be made online or through Spanish banks.
C. For Businesses and Self-Employed Individuals
- Register for IVA and income tax with the Diputación Foral de Bizkaia.
- File quarterly returns for IVA and income tax.
- Keep detailed records of income and expenses.
4. Costs Associated with Tax Services
- Tax Advisors (Gestores): €50–€150 per session, depending on complexity.
- Accountants: €100–€300 for annual tax filing.
- Software: Online platforms like TaxDown or Declarando charge €50–€100 for guided tax filing.
5. Local Considerations in Bilbao
- Language: Tax forms and services are available in Spanish and Basque. If you’re not fluent, consider hiring a gestor or using translation services.
- Unique Tax Regime: The Basque Country’s tax system differs from the rest of Spain. Ensure you’re filing with the correct authority (Diputación Foral de Bizkaia).
- Deductions: Residents in the Basque Country may benefit from additional deductions for housing, family, and education expenses.
- Deadlines: Missing deadlines can result in penalties. Mark key dates in your calendar and set reminders.
6. Practical Advice for Newcomers
- Hire a Tax Advisor: If you’re unfamiliar with the Spanish tax system, a gestor can simplify the process.
- Keep Records: Save all receipts, invoices, and financial documents for at least five years.
- Understand Double Taxation Agreements: Spain has treaties with many countries to avoid double taxation. Check if your home country has an agreement with Spain.
- Attend Workshops: The Diputación Foral de Bizkaia occasionally offers workshops for residents on tax filing.
7. Key Tax Offices and Resources in Bilbao
Diputación Foral de Bizkaia (Bizkaia Tax Authority)
- Address: Gran Vía de Don Diego López de Haro, 85, 48011 Bilbao
- Website: www.bizkaia.eus
- Phone: +34 944 068 000
- Services: Tax filing, consultations, and workshops.
Agencia Tributaria (Spanish Tax Agency)
- Website: www.agenciatributaria.es
- Phone: +34 901 335 533
- Services: Non-resident taxes and national tax inquiries.
Bilbao City Council (Ayuntamiento de Bilbao)
- Address: Plaza Ernesto Erkoreka, 1, 48007 Bilbao
- Website: www.bilbao.eus
- Phone: +34 944 204 200
- Services: Local taxes like IBI.
8. Conclusion
Filing taxes in Bilbao requires understanding the unique Basque tax system and adhering to local regulations. Whether you’re a resident, non-resident, or business owner, it’s essential to stay informed about deadlines, rates, and procedures. For newcomers, hiring a tax advisor or attending workshops can make the process smoother. Always consult official resources or professionals for personalized advice.
Let me know if you need further assistance!