In short, you will have to pay taxes both in your country and in Spain. Why? In some way or another, you pay taxes as a citizen in your country. But when you have a Spanish residence with a valid work permit, and you work from the territory of Spain, you are required to pay taxes here as well. Yes, on one hand, it may result in a considerable amount, but on the other hand, it ensures stability and avoids problems.
As for tax residents, the rates for them are calculated based on the fiscal year, not the term of their work permit. The rates are:
- Income up to €12,450 per year – tax rate of 19%
- Income from €12,450 to €20,200 – tax rate of 24%
- Income from €20,200 to €35,200 – tax rate of 30%
- Income from €35,200 to €60,000 – tax rate of 37%
- Income from €60,000 or more – tax rate of 45%
We advise you to pay taxes on time and in full to enjoy life in Spain without worries. Otherwise, instead of a calm and comfortable life, you will have to deal with fines, legal misunderstandings, and a refusal to extend your residence permit. We're sure you don't want that at all.