Understanding taxes in Spain is the part of moving here that newcomers most often underestimate — and the part that can cost the most if you get it wrong. This guide explains how tax residency works, what you’ll pay on income, the special regimes worth knowing about, and the reporting obligations that catch foreigners out, all for 2026.
This is the cornerstone tax guide. For the wider relocation picture, start with our complete guide to moving to Spain. It’s general information, not personalised advice — confirm your own position with a qualified gestor or tax adviser.
Are you a tax resident in Spain?
You’re generally a Spanish tax resident if any of these apply: you spend more than 183 days in a calendar year in Spain; your main economic interests are here; or your spouse and dependent children live here. The catch most people miss: tax residents are taxed on their worldwide income, not just what they earn in Spain. Double-taxation treaties exist with most countries to stop you being taxed twice, but they don’t remove the obligation to declare.
Income tax (IRPF)
Personal income tax (IRPF) is progressive and combines a national and a regional band, so your exact rate depends on where you live. In broad 2026 terms, rates run from around 19% on the lowest income up to roughly 45–47%+ at the top, with the highest earners in some regions paying more. Employment income, self-employment profit, rental income and pensions are generally taxed at these progressive rates; savings and investment income (interest, dividends, capital gains) follow a separate, lower savings scale.
The Beckham Law: a break for new arrivals
Spain’s special expat regime — the Beckham Law — lets qualifying new residents (typically those moving for employment) be taxed broadly as non-residents for up to six years: a flat rate on Spanish-source income and, crucially, no tax on most foreign income. It can mean major savings for higher earners, but the eligibility rules are strict and you must apply within a set window. Read our full explainer on the Beckham Law before counting on it.
Self-employment: becoming autónomo
Freelancers and sole traders register as autónomo, paying monthly social-security contributions (tiered by income) and quarterly IRPF and VAT (IVA) returns. The system has real upfront costs and paperwork, so understand it before you start invoicing — our guide to becoming autónomo in Spain walks through registration, costs and obligations.
Wealth tax and the reporting rules that catch expats
- Wealth tax (Impuesto sobre el Patrimonio) — an annual tax on worldwide net assets above a threshold (commonly around €700,000 plus a main-home allowance), varying significantly by region; some regions effectively exempt it.
- Modelo 720 — residents must declare overseas assets (accounts, property, investments) worth over €50,000. It’s informational, but missing it has historically meant heavy penalties — don’t overlook it.
- Non-resident tax — if you own Spanish property but aren’t resident, you owe annual non-resident income tax, even if you don’t rent it out.
Tax varies by region
Because regions set part of IRPF, wealth tax and inheritance/gift tax, where you live matters. Madrid is known for low regional taxes; the Basque Country and Navarre run their own foral systems entirely. Our city guides for Madrid, Barcelona, Valencia, Seville and Bilbao note the local angle.
Getting help
Spanish tax is complex and the deadlines are firm (the annual renta declaration runs spring to June). A good gestor or tax adviser usually pays for itself — find vetted, English-speaking professionals in our Insider Directory.
Planning the bigger move? Return to our moving to Spain guide, explore Expert Advice, or — if you’re a tax professional — become an Insider.