Spanish Tax for Expats: What You Need to Know in 2026
Understanding Spanish tax as an expat. Tax residency, rates, the Beckham Law, and when you need to file.
Spanish Tax Basics for Expats
Spain's tax system can be complex, especially for newcomers. This guide covers the essentials you need to know - but always consult a tax professional for your specific situation.
Are You Tax Resident?
You're Spanish tax resident if ANY of these apply:
- You spend 183+ days in Spain in a calendar year
- Your main economic interests are in Spain
- Your spouse and minor children live in Spain (unless you can prove otherwise)
Income Tax Rates 2026
Spanish income tax (IRPF) is progressive:
| Taxable Income | Rate |
|----------------|------|
| €0 - €12,450 | 19% |
| €12,450 - €20,200 | 24% |
| €20,200 - €35,200 | 30% |
| €35,200 - €60,000 | 37% |
| €60,000 - €300,000 | 45% |
| Over €300,000 | 47% |
Note: Andalucía has regional variations that can affect these rates slightly.
The Beckham Law (Special Tax Regime)
Officially the "Régimen Especial de Trabajadores Desplazados," this allows qualifying new residents to pay a flat 24% tax rate on Spanish income instead of progressive rates.
Who Qualifies?
- Haven't been Spanish tax resident in the previous 5 years
- Move to Spain for work (employed) or as a digital nomad
- Must apply within 6 months of becoming tax resident
Benefits
- Flat 24% rate on income up to €600,000
- Not taxed on foreign income (only Spanish-source)
- Lasts for 6 tax years
Who Should Consider It?
High earners who would otherwise pay 45%+ rate. For lower incomes, standard taxation might actually be better.
Key Taxes to Know
IBI (Property Tax)
Annual property tax, similar to UK council tax. Varies by municipality but typically 0.4-1.1% of cadastral value. Paid annually.
Wealth Tax (Impuesto sobre el Patrimonio)
Tax on worldwide assets above €700,000 (€500,000 in some regions). Includes property, investments, savings. Complex calculations - get professional advice.
Capital Gains Tax
On selling assets:
- Under €6,000: 19%
- €6,000 - €50,000: 21%
- €50,000 - €200,000: 23%
- Over €200,000: 26%
Inheritance Tax
Spanish succession tax can be significant. Rates and allowances vary by region and relationship. Planning essential for valuable estates.
Common Expat Tax Situations
Renting Out UK Property
Still taxable in Spain on rental income, but you'll get credit for UK tax paid. Must declare it.
UK Pension Income
Taxed in Spain (except government pensions which remain taxed in UK). Declared as regular income.
Remote Work for Foreign Company
Taxed in Spain on your salary. Company doesn't need Spanish presence - you're responsible for declaring income.
Cryptocurrency
Gains are taxable. Spain requires declaring holdings on foreign asset forms if exceeding certain thresholds.
Filing Requirements
Model 100 (IRPF)
Annual income tax return, due April-June for previous year. Required if:
- Income exceeds €22,000 from single employer
- Multiple employers with combined income over €14,000
- Any other income over €1,000
Model 720
Declaration of overseas assets exceeding €50,000 per category (accounts, property, investments). Penalties for non-compliance were reduced but still significant.
Double Taxation
Spain has treaties with most countries including UK to prevent double taxation. Generally:
- Tax is paid in Spain
- Credit given for tax paid elsewhere
- Some income types have specific rules
Our Advice
1. Get professional help - Spanish tax is complex, mistakes are expensive
2. Plan before you move - tax planning is most effective beforehand
3. Keep records - everything, for at least 5 years
4. Declare everything - Spain's tax authority is increasingly sophisticated
5. Consider Beckham Law early - you only have 6 months to apply
For gestorias and tax advisors who specialise in expat tax, see our directory.
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