Taxes in Spain are based on your residency status and the source of your income. Besides these, your income type, location within Spain and asset ownership also matter.
Not everyone who has Spanish residency is liable to pay tax. Tax residents are those who spend more than 183 days in a calendar year in the country or have their main financial interests in Spain, and they are taxed on their worldwide income.
Non-residents only pay tax on Spanish-sourced income, usually at fixed rates and without access to standard deductions.
There are also special tax regimes in Spain, such as the Beckham Law. This law reduces the tax rate on Spanish income for qualifying foreign workers, while exempting them from paying tax on foreign income.
This guide will help you understand how taxes work in Spain and the tax treatment to expect if you are considering relocating and settling in Spain. Our Spanish immigration experts at Global Citizen Solutions (GCS) will also offer guidance on relocation pathways.
Taxes in Spain – Key Takeaways
Who is a tax resident in Spain?
According to the Spanish Tax Agency, Agencia Estatal de Administración Tributaria (AEAT), you are a tax resident in Spain if you meet at least one of the following domestic criteria:
- Lived in Spain for over 183 days in a calendar year. Temporary absences are included in this count, except if you have proven tax residence in another country. Temporary visits to Spain to comply with contractual obligations with the Spanish authorities are not included in this count.
- Have Spain as your main center of economic interests and activities.
- It is also presumed that Spain is your habitual place of residence if your spouse and any underage dependents permanently live in the country.
If you do not meet any of these criteria, you are not considered a tax resident in Spain. As a non-tax resident, you are only taxed on your Spanish-sourced income, known as Non-Resident Income Tax (NRIT).
Domestic criteria
Under domestic rules, Spanish taxation applies to the entire calendar year. The concept of a part-year tax resident does not exist. You are either a tax resident or not, and you are taxed for the full year.
What is DTA?
A Double Taxation Agreement (DTA) is a bilateral agreement between two countries to eliminate or reduce the taxation of income for individuals and companies.
For example, an individual may be considered a tax resident of two countries. This is often seen in cases of expatriates working in Spain who are residents in both Spain and their home country. In this case, a DTA between an individual’s home country and Spain will provide a relief from Spanish tax, based on this agreement.
These tax treaty agreements clarify which country has the right to tax specific types of income, preventing taxpayers from paying taxes on the same income in both countries.
If this is your case, be sure to keep all relevant documents, such as travel records, housing documents, employment or business records, and any evidence that could inform your tax treatment.
Spanish Income Tax
Spanish income tax, or Impuesto sobre la Renta de las Personas Físicas (IRPF), is a progressive tax applied to individuals based on their total income. There are two types of income tax in Spain depending on whether an individual is a tax resident or not:
- Personal income tax (PIT): This is for tax residents in Spain and is applied to worldwide income at progressive rates, regardless of where it was generated after personal allowances and deductions are applied.
- Non-Resident income tax (NRIT): This is for non-tax residents in Spain and is applied only on Spanish-sourced income, such as rental income or employment income tied to Spanish territory. It is taxed at a fixed rate and is not eligible for deductions or personal allowances.
Spanish tax law divides income into two categories: General income, such as salaries, business income, and rental earnings, and savings income, such as dividends, interest, and capital gains. Each category has its own tax rates and rules, and the total from each category forms the taxable base.
Spain income tax rates in 2026
The current Spanish personal income tax rates are as follows:
| Income Bracket (€) | Tax Rate |
|---|---|
| Up to 12,450 | 19% |
| 12,451 – 20,200 | 24% |
| 20,201 – 35,200 | 30% |
| 35,201 – 60,000 | 37% |
| 60,001 – 300,000 | 45% |
| Over 300,000 | 47% |
Source: PWC
The current NRIT rates are as follows:
- General rate: 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19%.
- Capital gains generated from transfers of assets: 19%.
- Interest: 19%. Interest is tax-exempt for EU residents. Double taxation treaties (DTTs) may establish lower rates.
- Dividends: 19% (DTTs may establish lower rates).
- Royalties: 24% (DTTs may establish lower rates).
- Pensions are taxed at progressive rates (between 8% and 40%).
Personal allowances and deductions
Spain offers personal allowances that reduce taxable income for tax residents. The basic allowance is €5,550, increasing to €6,700 if you are over 65 and €8,100 if over 75. Additional allowances apply if you have qualifying dependents:
| Dependent | Annual Amount |
|---|---|
| First child | €2,400 |
| Second child | €2,700 |
| Third child | €4,000 |
| Fourth child and any subsequent children | €4,500 |
| Additional amount for each child under three | €2,800 |
| Elderly parent or grandparent living with you over 65 | €1,150 |
| Elderly parent or grandparent living with you over 75 | €2,550 |
Source: PWC 30 June 2026
These allowances help lower your taxable income, but due to their complexity and regional variations, it is advisable to consult a Spanish tax expert to ensure accurate calculation.
Savings, Capital Gains and Social Security
In Spain, income from savings includes earnings such as interest, dividends, and capital gains. This type of income is taxed separately from general income and follows a progressive tax scale with fixed rates.
Spanish tax rates on savings income and capital gains
| Income Bracket (€) | Tax Rate |
|---|---|
| Up to 6,000 | 19% |
| 6,001 – 50,000 | 21% |
| 50,001 – 200,000 | 23% |
| 200,001 – 300,000 | 27% |
| Over 300,000 | 30% |
As highlighted, these rates apply to savings income such as interest, dividends, and capital gains. They are set at the national level, but some regions in Spain may apply slightly different rates. If you are a non-resident in Spain but a resident of an EU country, Iceland, Norway, or Liechtenstein, you pay a flat 19% tax on savings income earned in Spain. If you live anywhere else, you pay 24%.
Deductions for savings income
Savings income in Spain includes interest, dividends, and capital gains from the sale of assets. Spain applies a separate tax rate to savings income, distinct from the general income tax rates:
Tax rates for savings income are applied at progressive rates, starting from 19% for income up to €6,000, 21% for income between €6,000 and €50,000, and 23% for income above €50,000 (rates as of the 2021 tax year).
Capital gains tax
Capital Gains Tax in Spain applies when you sell an asset, such as real estate, shares, or other investments, for more than you paid. The profit made from the sale is considered a capital gain and is taxed as part of your savings income.
The current tax rates on capital gains in Spain are:
- Up to €6,000: 19%
- €6,001 to €50,000: 21%
- €50,001 to €200,000: 23%
- €200,001 to €300,000: 27%
- Over €300,000: 30%
If you’re a tax resident, you must report worldwide capital gains. Non-residents only pay capital gains tax on assets located in Spain, at a flat rate of 19% for EU/EEA residents and 24% for others. Exemptions or reductions may apply in cases like the sale of a primary residence by residents over age 65.
Social Security
Social Security contributions are separate from income tax and apply to employment and self-employment income. Different rates apply to different categories of employees:
- Employees on standard, indefinite contracts: 6.50% for the employee and 30.65% for the employer. The maximum monthly contribution base is €5,101.20
- Self-employed workers: contribute through 15 net-income brackets and choose a contribution base within their bracket. The ordinary combined contribution rate for 2026 is 31.5%. This includes the Intergenerational Equity Mechanism.
Source: PWC
An additional solidarity contribution applies to employee remuneration above the maximum base, with combined rates of 1.15%, 1.25%, and 1.46% across successive excess-pay bands in 2026. However, this does not apply to self-employed workers.
Property Taxes for Residents and Non-Residents in Spain
Spanish property taxes are governed by the Impuesto sobre Bienes Inmuebles (IBI), also known as the Real Estate Tax. They are levied on the owners of properties located in Spain, regardless of whether they are occupied or vacant.
The tax rate for the IBI can vary across municipalities and is a percentage of the ratable value, ranging from 0.4 % to 1.3 %, depending on property type and the municipality where it is located.
| IBI Rate | Urban property | Rural property | Special properties |
|---|---|---|---|
| Minimum | 0.4% | 0.3% | 0.4% |
| Maximum | 1.1% | 0.9% | 1.3% |
Property tax for residents
Tax residents report income for properties located in Spain or abroad through IRPF. Properties that aren’t rented out or lived in can also generate taxable income.
Property tax for non residents
Property tax for non-residents is assessed in three ways:
- Rental: Rental income in Spain is subject to Non-Resident Income Tax (IRNR). The rate and permitted expenses depend on your country of residence and relevant rules.
- Own use or vacancy: An urban property can generate taxable imputed income even when no rent is received. This is separate from local property taxes.
- Sale: Any gains from selling Spanish property are subject to a 19% domestic IRNR rate, subject to any treaty exemptions.
IBI payment is made annually, and property owners receive a notification or bill from the local tax authorities indicating the amount due and the payment deadline.
In addition to the IBI, there may be other local or regional taxes related to property ownership, such as the municipal capital gains tax (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana – IIVTNU) or the garbage collection tax (Tasa de Recogida de Basuras). These taxes can vary depending on the specific municipality or region.
Corporate Taxes in Spain
The corporate tax, or Impuesto sobre Sociedades, is imposed on companies operating in Spain, with a standard rate of 25%. However, reduced rates may be available for small and medium-sized enterprises (SMEs) or companies engaged in certain activities or industries.
Resident companies are taxed on their worldwide income. NRIT is chargeable on permanent establishments of foreign companies in Spain and non-established foreign companies that obtain income from Spain.
Companies are required to file an annual corporate tax return, reporting their net income, expenses, and other relevant financial information. Deductions, allowances, and exemptions specific to business activities and investment income may be available to reduce the taxable base.
VAT (IVA) in Spain
Value Added Tax (Impuesto sobre el Valor Añadido – IVA) is a consumption tax applicable to the sale of goods and services in Spain. It is similar to the sales tax in other countries. The standard VAT rate is 21%, but there is a 10% reduced rate for necessities such as food and agricultural products are not included in the super reduced 4% rate, which is for other necessities such as bread, milk, books, and medicine. Businesses are responsible for collecting and remitting VAT to the tax authorities.
Source: PWC
Inheritance Tax and Gift Tax in Spain
Inheritance Tax and Gift Tax in Spain apply when someone receives money or assets as a gift or through inheritance. The person who receives the gift or inheritance is responsible for paying the tax.
The amount of tax depends on the relationship between the giver and the recipient, the value of the assets, and the region in Spain where the recipient lives. Close relatives such as children or spouses usually pay lower tax rates and receive higher exemptions, while distant relatives or unrelated individuals may pay more.
Tax rates range from 7.65% to 34%. However, some regions offer reductions or even complete exemptions for close family members. Note that non-residents must also pay inheritance and gift taxes, but EU and EEA residents get the same regional benefits that Spanish residents as the result of a 2014 European court ruling.
Wealth Taxes in Spain
Wealth tax (Impuesto sobre el Patrimonio) is levied on individuals’ net worth, and it differs by residence, asset connection, and autonomous-community rules. The wealth taxes apply to residents and non-residents who own significant assets in Spain.
This tax rate is progressive, with higher rates applied to higher levels of net worth. Certain deductions and exemptions may apply, and it is essential to evaluate your assets and liabilities to determine your wealth tax obligations.
The assessment date for this tax is 31 December each year.
The main exemptions and reliefs include:
- General exemption: The state minimum exempt amount is €700,000 per individual, but autonomous communities can establish different amounts.
- Main-home exemption: Up to €300,000 per taxpayer of a qualifying main home’s value is exempt. This does not automatically cover holiday homes or rental properties.
- Business exemptions: Qualifying business assets and interests in certain companies may be exempt if the statutory conditions are met.
Source: PWC
Non-residents can choose the regional rules of the autonomous community where the greatest value of their taxable Spanish assets and rights is located. This choice involves applying the relevant regional framework, rather than selecting individual benefits from different systems.
A return may still be required even when no tax is payable. Filing is generally required if tax is due or the gross value of assets and rights within the tax’s scope exceeds €2 million, including exempt assets and before deducting debt.
The Special Regime for Displaced Workers (Beckham Law)
The Beckham Law is a special tax regime for displaced workers under Article 93 of the personal income tax law.
The law allows tax-resident foreign workers to calculate their income tax using non-resident rules. That is, eligible individuals pay a flat 24% income tax rate on their Spanish-sourced income up to €600,000 per year, instead of the progressive resident rates that can go up to 47%.
Income earned outside Spain is not taxed under this regime, making it especially attractive for expats with international income.
To qualify for this regime, applicants must:
- Be a Spanish tax resident (spending more than 183 days a year in Spain) and not having been a resident in Spain within the minimum period of the last five years.
- At least 85 % of your work duties must be performed in Spain.
- The maximum annual income eligible for this regime is €600,000.
What is the Spanish tax year?
The Spanish tax year runs from January 1 to December 31, following the standard calendar year.
For individuals, the annual income tax return (IRPF) is usually filed between early April and late June of the following year. During this time, residents must declare their income, including employment earnings, rental income, savings, and any relevant deductions or allowances.
Non-residents must also file tax returns on Spanish-sourced income, but deadlines can vary depending on the type of income and the frequency of payments (monthly or quarterly).
Registration, Filing, and Double Taxation Relief
You must register with the Spanish tax authorities to fulfill your tax obligations in Spain. As a tax resident, you will obtain a Tax Identification Number (Número de Identificación Fiscal – NIF) by registering at the nearest Tax Agency office. You have to make an appointment with a Tax Agency office prior to your visit.
For instance, if you hold a Spain Digital Nomad Visa or a Spain Non-Lucrative Visa and spend more than 183 days in Spain during a calendar year, you are considered a tax resident and must register with the Spanish tax authorities to fulfill your tax obligations.
Foreign non-residents can obtain a Non-Resident Identification Number (Número de Identificación de Extranjeros – NIE) by applying at the local Foreigners’ Office (Oficina de Extranjería).
To register your duty to pay Spanish tax for the first time, fill out Form 30 (“Modelo 30“). You will also need this form to update your information. English-language directions are also available on Form 30 to assist you in filling out the form.
Filing tax returns in Spain
In the first year of becoming a tax resident in Spain, it is mandatory for everyone to file a personal income tax return. However, after the initial tax year only, certain conditions determine whether an individual must file a tax return. Here are the key points:
Whether you must file a Spanish income-tax return depends on your income sources, amounts and personal circumstances.
For the 2025 tax year, employment income from one payer has a €22,000 filing threshold, while a lower €15,876 threshold applies in certain cases. Other income and mandatory-filing rules can still require a return, even where tax has already been withheld.
Source: AEAT Official Filing Threshold
Double taxation relief
A double taxation treaty can provide relief and allocate taxing rights to one country. However, it does not completely remove your tax reporting responsibilities in either country.
Ensure you identify if there’s a treaty in place between the two countries where you’re a resident, and find the tax requirement covering your salary, investment income, rent, or pension. Working with an international tax expert will help provide better guidance and strategy for this purpose.
Tax Planning Before and After Moving to Spain
Having a Spanish visa or residence permit does not automatically determine tax residence. Your arrival date in Spain, family situation, income sources, and economic interests can all determine whether you will pay tax in Spain or not.
Before moving:
- Review your residence in both countries, including how long you will stay, family location, and available homes. Check if a DTA exists between both countries.
- List all your income sources and assets, and keep records of all ownership details and supporting documents.
- Check if Article 93 applies to your case and assess it against the ordinary taxation requirements
- Get advice from an international tax expert
After moving:
- Confirm your tax identifier and complete the appropriate census updates.
- Confirm payroll withholding and Social Security coverage, including any documentation supporting continued overseas coverage.
- Maintain a calendar of returns, information reports, and all payment deadlines.
- Keep your travel records, residence certificates, income statements, and evidence of foreign tax paid.
- Review all changes annually, including a new job, business activity, property purchase, family move, or departure from Spain.
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