Taxes in Spain

Spain tax rates in 2026 at a glance

A quick cheat sheet of the 2026 rates; details and worked examples follow below.

The Spanish system runs on two levels. Half of income tax, wealth tax, inheritance tax and transfer tax on resale property are devolved to the autonomous communities, each with its own rates and reliefs, so the same salary is taxed differently in Madrid and Valencia, while the Basque Country and Navarre have their own tax codes. Always check a generic figure against the rules of the region.

If an older guide quotes a 28% top rate on savings income or a flat 25% for all small companies, it predates Law 7/2024. From 2025 the top savings rate rose to 30%, and corporate tax for small and micro businesses is being cut on a schedule that runs to 2029.

Compare taxes in 146 countries: relocation taxes 2026

Who is a Spanish tax resident

A Spanish resident pays personal income tax on worldwide income; a non-resident pays non-resident income tax only on Spanish-source income. The tests are in article 9 of Law 35/2006 on income tax, and any one of them is enough.

There is no split year: you are resident for the whole calendar year or not at all. Someone who moves in spring and stays more than 183 days is taxed under domestic law on worldwide income from 1 January, including pre-move earnings, unless a treaty tie-breaker keeps them resident in the previous country for those months.

A residence permit and tax residence are different things. You can hold a Spanish residence permit without being tax resident if you spend under 183 days in the country and your centre of interests is elsewhere, and you can become resident without any permit simply by staying too long. How to count days and what happens when two countries both claim you is covered in our article on the 183-day rule.

Dual residence is settled by the treaty tie-breakers: permanent home, centre of vital interests, habitual abode, then nationality. In practice the Spanish tax agency (AEAT) looks at real-life evidence such as municipal registration (padron), a lease, utility bills, the children's school and bank activity. Without a residence certificate from the other country it is very hard to prove you are not resident.

Spain tax residency: how to become a resident and count the days

Spain makes you resident with more than 183 days in a calendar year. The tax office also counts temporary absences as days in Spain unless you hold another country's residency certificate. Two months back home do not reset the count.

There is a shortcut without days too: a main business or income in Spain, or a spouse and minor children living here. A resident pays progressive income tax on worldwide income, a non-resident only on Spanish income. The status is confirmed by a Spanish Tax Agency certificate.

Mistakes cost more: a family in Madrid and 150 days in the country can easily give you a residency you did not know about. Murblz support removes these risks: we count days, check your ties and obtain the certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

Talk to a manager now

Personal income tax: scales, allowances and a salary example

Income tax splits income into two baskets. The general base covers salary, self-employed income (a sole trader in Spain is an autonomo), rent and pensions, taxed on a progressive scale with a state half and a regional half. The savings base covers dividends, interest and gains on shares, funds, property and crypto, with one scale for the whole country.

General income: the combined 2026 scale

The state half is 9.5-24.5% everywhere, while the regional half differs by community. The combined scale above is used for payroll withholding and matches the final bill wherever the regional scale mirrors the state one. Top combined rates in 2026: Madrid 45%, Andalusia 47%, Catalonia 50%, the Valencian Community about 54%. Choosing a region is a tax decision too.

Savings income

The top rate went up from 28% to 30% in 2025. Capital losses are set against gains within the savings base, and any unused balance carries forward for four years.

Allowances and deductions

The personal allowance is $6,300 (€5,550) a year, rising to $7,500 (€6,700) from age 65 and $9,100 (€8,100) from 75. It is not deducted from the base but from the tax: the scale is applied to the allowance and that amount is subtracted from the tax on the full base. Employees also deduct their own social security contributions and a flat $2,300 (€2,000) of other expenses. There are extra allowances for children, elderly parents and disability.

From 2026 low earners get a credit of up to $670 (€590.89). It applies in full to employment income up to $19,200 (€17,094) a year, which is the minimum wage of $1,400 (€1,221) paid 14 times, and tapers to zero at $23,000 (€20,048.45). Minimum-wage earners thus pay no income tax, and anything withheld during the year comes back on the return.

Staff sent abroad get a separate relief: salary for days physically worked outside Spain for a non-resident company is exempt up to $68,000 (€60,100) a year under article 7p of the Personal Income Tax Law. Remote work from Spain for a foreign employer does not qualify.

Example: a salary of $45,000 (€40,000) a year

A resident, single, no children, permanent contract, calculated on the combined scale.

The employee hands over $11,700 (€10,345), about 25.9% of gross pay, of which income tax is roughly 19.4%. Adding the employer's contributions, the gap between the full cost of the job and take-home pay is about 44%. In Madrid income tax on this salary would be slightly lower, in Catalonia higher.

Social security: employees, employers and autonomos

Both employee and employer contribute to social security (Seguridad Social). The 2026 rates for a permanent contract:

On fixed-term contracts the unemployment rate is higher: 6.70% for the employer and 1.60% for the employee. The MEI share rose from 0.80% in 2025 to 0.90% in 2026 and is scheduled to reach 1.2% by 2029.

Contributions are charged on salary up to a maximum base of $5,800 (€5,101.20) a month. Since 2025 a solidarity contribution applies to pay above that cap, at 2026 rates of 1.15% on the slice up to 10% above the maximum, 1.25% on the slice from 10% to 50% above it and 1.46% on the rest. Most of it is borne by the employer, and it earns no extra pension rights.

Autonomos: contributions based on real income

Since 2023 the self-employed pay contributions in one of 15 bands according to net income. The overall rate in 2026 is 31.5% of the chosen base, MEI included. The band table for 2026 was kept at the 2025 level: the minimum is about $240 (€206) a month for net income up to $750 (€670), while the top band starts at about $680 (€607) for income above $6,800 (€6,000) a month. A higher base within the band raises future benefits.

New autonomos pay a flat $90 (€80) a month for 12 months, extendable for 12 more if first-year net income was below the minimum wage; it is open to anyone not registered as self-employed in the previous two years. After the tax return, Seguridad Social checks the band against actual income and charges or refunds the difference.

Contributions are due monthly from registration, even with no income yet, but are fully deductible for income tax.

Corporate tax and dividends

Spanish companies pay corporate income tax (Impuesto sobre Sociedades) on worldwide profit. The usual small-business vehicle is the limited company (SL), with minimum capital of one euro since 2022. Law 7/2024 phases in lower rates for smaller firms.

The new-company rate excludes companies mainly holding passive assets (entidades patrimoniales). Innovative startups with empresa emergente status pay 15% for four periods starting with the first profitable one, subject to conditions on company age and not distributing profits. We cover that status and the founder visa on the Spain startup visa page.

Companies with turnover of $23 million (€20 million) or more cannot pay less than 15% of the taxable base, a domestic minimum tax. Groups with turnover of $840 million (€750 million) or more are subject to the Organisation for Economic Co-operation and Development global minimum tax of 15%, introduced by the same Law 7/2024.

Dividends and the full tax burden

A Spanish company withholds 19% on dividends paid to resident individuals. This is a prepayment, and the final tax is worked out on the 19-30% savings scale. Dividends a company receives from subsidiaries in which it holds at least 5% for at least a year are 95% exempt, an effective rate of about 1.25%.

Example: a micro company with a profit of $113,000 (€100,000) in 2026 pays out all of its net profit to a resident owner.

Earned by an autonomo as personal income, the same money would face a 45-47% marginal rate plus contributions. A company pays off at higher incomes and when profit is reinvested, but costs more to run. Our company registration in Spain service handles the set-up, and you will also need a business account.

The annual corporate tax return (Modelo 200) is due within 25 days after six months from the end of the financial year, which means 25 July for a calendar year. Payments on account (Modelo 202) are made in the first 20 days of April, October and December.

VAT: 21%, 10%, 4% and no threshold

The standard rate of value added tax is 21%, with two reduced rates, a zero rate for exports and a list of exemptions.

The awkward part is that there is no registration threshold. Autonomos and companies charge value added tax from their very first invoice and must file returns even with zero turnover. European Union Directive 2020/285, which since 2025 lets member states exempt small businesses with turnover up to $96,000 (€85,000), has not been written into Spanish law. The European Commission has taken Spain to the Court of Justice of the European Union over this, and on 26 March 2026 parliament passed a non-binding motion calling for the scheme. At the time of writing no law has been passed.

The value added tax return (Modelo 303) is filed quarterly: by 20 April, 20 July, 20 October and 30 January for the fourth quarter, with the annual summary Modelo 390 also due in January. Companies with turnover above $6.8 million (€6,010,121.04) file monthly. Services bought by Spanish businesses from foreign suppliers fall under the reverse charge, and digital services sold to consumers in other European Union states are declared through the One Stop Shop (OSS).

The Canary Islands have no value added tax and use their own IGIC with lower rates, while Ceuta and Melilla apply IPSI. Small self-employed retailers fall under the equivalence surcharge scheme (recargo de equivalencia): the supplier adds a surcharge on top of value added tax and the retailer does not file value added tax returns.

One more date for planning: Royal Decree-Law 15/2025 pushed back mandatory tamper-proof invoicing and billing software (VeriFactu) to 1 January 2027 for companies and 1 July 2027 for everyone else, autonomos included.

Special regimes: Beckham law, digital nomads, startups and freelancers

Spain has no territorial or remittance-basis taxation. The main break for newcomers is the inbound worker regime in article 93 of the Personal Income Tax Law, known as the Beckham law after David Beckham, one of its first users.

The savings show up at high incomes: on our calculation a $113,000 (€100,000) salary costs about $36,000 (€32,100) in income tax on the combined scale and $27,000 (€24,000) under the Beckham regime. At mid-range pay the picture flips, because the regime taxes gross employment income with no deductions or allowances. At $45,000 (€40,000) the Beckham tax is $11,000 (€9,600), while the general scale gives $8,700 (€7,745), as in the example above. For a single employee with no children the break-even point is around $65,000 (€58,000), before counting the benefit on foreign income and wealth tax. Missing the six-month filing window closes the regime for good.

Digital nomads and startups

The digital nomad visa lets you live in Spain while working remotely for foreign companies. Employees on that visa can apply for the Beckham regime on the remote-work ground. Freelancers usually register as autonomos on the general scale and can only enter the regime as entrepreneurs with an activity recognised as innovative. Visa conditions are on our Spain Digital Nomad Visa page.

How autonomos are taxed

An autonomo pays income tax on the general scale on net income after expenses and contributions. Spanish companies and other autonomos paying their invoices withhold 15% on account, or 7% in the year activity starts and the following two years. If withholding covers less than 70% of income, for example with foreign clients, the autonomo prepays 20% of net income quarterly (Modelo 130). There is no simplified flat-rate system for consultants, IT specialists and other professions; the module system is limited to a narrow list of activities such as some retail and haulage.

Property, wealth, inheritance, crypto and exit tax

A resale home triggers regional transfer tax; a new build from a developer triggers 10% value added tax plus stamp duty (AJD) instead.

Many regions cut rates for young buyers and large families. Owners pay an annual municipal property tax, IBI, of 0.4-1.1% of the cadastral value for urban property, a value usually well below market price. On a sale the town hall levies a land value increase tax (plusvalia municipal), and the seller pays tax on the gain: 19-30% for residents, 19% for non-residents. Property selection and a breakdown of purchase costs are in our investment property in Spain section.

Wealth tax and the solidarity tax

Residents pay wealth tax (Impuesto sobre el Patrimonio) on worldwide net assets at 31 December: 0.2-3.5% on the state scale, with a $790,000 (€700,000) allowance plus up to $340,000 (€300,000) for the main home. Regions change the scale and grant reliefs, and Madrid and Andalusia apply a 100% rebate. Non-residents and Beckham regime taxpayers pay only on assets located in Spain.

To stop regional rebates from wiping the tax out, a state solidarity tax on large fortunes has applied since 2022: 1.7% on assets from $3.4 million (€3 million) to $6 million (€5.35 million), 2.1% up to $12 million (€10.7 million) and 3.5% above that, with a credit for regional wealth tax paid. It remains in force in 2026. A wealth tax return is required if tax is payable or if assets exceed $2.3 million (€2 million); a solidarity tax return only if tax is payable. Combined income tax and wealth tax are capped at 60% of taxable income, but the cap cannot cut the wealth tax bill by more than 80%.

Inheritance and gifts

Inheritance and gift tax is paid by the recipient on a state scale of 7.65-34%, with multipliers for kinship and the heir's existing wealth. Regions change the outcome radically: Madrid gives spouses, children and parents a 99% rebate, Andalusia a large allowance for close relatives. Non-residents may apply the rules of the region where the assets are or where the deceased lived.

Crypto

Gains on selling crypto are taxed in the savings base at 19-30%, and swapping one coin for another also counts as a disposal. Crypto is included in the wealth tax base. If on 31 December you hold more than $56,000 (€50,000) of crypto abroad, on foreign exchanges or with foreign custodians, you must file the information return Modelo 721 by 31 March. From 2026 crypto-asset providers in the European Union collect client data under the DAC8 directive, with the first exchange between member states due by 30 September 2027. Compare countries in our article on crypto and relocation.

Exit tax

A resident leaving Spain after being tax resident for at least 10 of the last 15 years pays tax on unrealised gains on shares and fund units if their market value exceeds $4.5 million (€4 million), or $1.13 million (€1 million) where the holding in a company is above 25%. It can be deferred on a move within the European Union or the European Economic Area.

Non-residents and withholding taxes

A non-resident without a permanent establishment in Spain pays non-resident income tax separately on each item of Spanish income, usually on the gross amount.

A non-resident owner of an unlet flat still pays tax on deemed income: 1.1% of the cadastral value if it was recently revised, otherwise 2%, taxed at 24%, or 19% for European Union and European Economic Area residents. The Modelo 210 return for this income is due by 31 December of the following year. On lettings, European Union and European Economic Area residents can deduct expenses, while everyone else pays 24% on the gross rent.

When a non-resident sells property, the buyer must withhold 3% of the price and pay it to the tax agency. It is a prepayment against the 19% tax on the gain: if the tax turns out lower, the difference is refunded through a return. Double tax treaties can reduce the rates on dividends, interest and royalties, but only with a tax residence certificate from the other country. For a Spanish bank account, see our personal accounts in Spain section.

Spain's double tax treaties

Spain has about a hundred double tax treaties. They allocate taxing rights, cut withholding rates and settle residence disputes.

Among destinations relevant to relocation, treaties are in force with the United States, the United Kingdom, Germany, France, Portugal, Cyprus, the United Arab Emirates, Israel, Argentina, Brazil, Serbia, Turkey and, since 2024, Paraguay. For a comparison with the neighbouring country, see taxes in Portugal and our overview of taxes in Europe in 2026.

Spain has treaties of its own in force with Kazakhstan, Belarus, Armenia, Georgia, Azerbaijan, Uzbekistan and Moldova. The 1985 convention with the Soviet Union still applies to former Soviet republics without a treaty of their own, which according to the Spanish Ministry of Finance includes Tajikistan. It stopped applying to Turkmenistan from 1 January 2000 and to Kyrgyzstan from 1 January 2023, so there is currently no treaty with either.

The treaty with Russia, signed in Madrid on 16 December 1998 and applied since 1 January 2001, replaced the 1985 convention with the Soviet Union. Since 8 August 2023 Russia has suspended its key articles, on dividends, interest, royalties, real estate income, capital gains, employment income and directors' fees, while Spain has not terminated the treaty and its Ministry of Finance still lists it as in force. Tax withheld in Russia at domestic rates is credited in Spain up to the Spanish tax on the same income.

Dividends, rent or asset sales abroad are best planned in advance with Murblz specialists.

Filing, deadlines, penalties and what it means if you move

Filing late before the agency asks costs 1% plus 1% per full month of delay, rising to 15% plus interest after 12 months. If the agency finds the problem itself, the penalty is 50% to 150% of the unpaid tax. The special Modelo 720 penalties, which the Court of Justice of the European Union found disproportionate on 27 January 2022 (case C-788/19), have been abolished, but the filing obligation remains. For company bookkeeping and reporting, see our audit and reporting section.

What it means if you move

Spain is a great place to live, but it is a high-tax country with tight enforcement. An honest list of what to know before moving.

Worldwide income from year one. With no split year, a new resident pays income tax on all income from 1 January, foreign dividends, rent and sales included.

Heavy burden on middle and high salaries. The 37% marginal rate starts at $40,000 (€35,200) of taxable base and 45% at $68,000 (€60,000), with social security on top.

The region matters a lot. Income tax, wealth tax, inheritance tax and property transfer tax differ noticeably between Madrid, Andalusia, Catalonia and Valencia.

Wealth tax does not fully disappear. Even in Madrid and Andalusia the solidarity tax applies once net assets exceed $3.4 million (€3 million).

The Beckham regime does not suit everyone. It lasts 6 years, needs five prior years of non-residence, can cost more than the general scale below about $65,000 (€58,000), and a missed deadline cannot be fixed.

Autonomos pay from the first euro. No value added tax threshold, monthly contributions even without income, quarterly reporting.

Foreign assets are visible. Modelo 720 and 721 plus automatic exchange under the Common Reporting Standard and DAC8 put foreign accounts, brokers and exchanges in front of the Spanish tax agency.

Exit tax. After 10 years of residence, large shareholdings are taxed on departure even if nothing is sold.

Treaties that work only in part. Where the other country has suspended key articles, it withholds tax at its domestic rates, and Spain credits that tax only up to the Spanish tax on the same income.

Property no longer buys residence. The golden visa for investors was abolished, with applications closed from 3 April 2025. The tax of up to 100% on home purchases by non-residents from outside the European Union discussed in 2025 had not been adopted at the time of writing. The road to a passport is long, 10 years of residence for most nationalities; routes based on descent are covered on the Spanish citizenship by birth page.

Related reading: all Spain programmes and taxes by country.

What matters for an investor

FAQ