If you’re living in Spain or earning income here, you need to understand IRPF (Impuesto sobre la Renta de las Personas Físicas) — Spain’s personal income tax.
This guide breaks down:
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How income tax works for Spanish residents and expats
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Progressive tax brackets and rates
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Allowable deductions
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Common pitfalls and how to plan smartly
🧾 Who Pays Income Tax in Spain?
You are liable for Spanish income tax if:
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You are a tax resident in Spain
→ You pay tax on your worldwide income -
You are a non-resident
→ You only pay tax on Spanish-source income (via non-resident tax rules)
If you’re unsure of your residency, see this guide on tax residency.
📊 Spanish Income Tax Rates (Progressive Brackets)
Income tax is progressive: the higher your income, the higher your tax rate.
💡 Base National Rates (IRPF):
| Income Bracket (€) | Tax Rate |
|---|---|
| 0 – 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% |
📝 Note: These are national rates. Autonomous communities (e.g., Catalonia, Madrid, Andalusia) can add their own regional tax on top.
🧍 How This Applies to Expats
Expats living in Spain for more than 183 days must declare:
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Foreign salaries & pensions
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Self-employed or freelance income
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Rental income (Spanish or foreign)
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Dividends, interest, royalties
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Capital gains
You must file a tax return annually, even if tax is withheld by an employer.
🧮 Key Deductions & Allowances
👨👩👧 Personal Allowance:
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€5,550 general
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€6,700 if over age 65
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€8,100 if over 75
👶 Child Deductions:
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€2,400 for first child
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€2,700 for second
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€4,000 for third
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€4,500 for fourth and beyond
🏥 Others:
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Contributions to Spanish pension plans
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Charitable donations
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Mortgage deductions (only for homes purchased before a certain date)
✅ EU residents may qualify for similar deductions if they provide proof of income and tax residency.
🧑⚖️ Example: Tax Bill for an Expat in Spain
Let’s say a UK expat:
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Earns €50,000 salary from a remote job
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Pays rent, has 1 child, and contributes to a Spanish pension
Estimated Income Tax Breakdown:
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Taxable income after deductions: ~€44,000
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Total tax liability: ~€10,300 (avg. 23%)
📅 Filing & Payment Deadlines
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Tax year: January 1 – December 31
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Filing season: April – June (exact dates vary)
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Form: Modelo 100
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Payment: Lump sum or in two installments
🧠 Pro Tip: You must pre-register with the tax agency (Agencia Tributaria) and may need a digital certificate or Cl@ve PIN.
⚠️ Common Expat Mistakes
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❌ Not declaring foreign income (Spain taxes global income)
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❌ Thinking your pension is tax-free (depends on treaty)
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❌ Missing out on deductions due to lack of Spanish tax advice
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❌ Filing late or skipping the declaration altogether
💬 Frequently Asked Questions
❓ Is there a tax exemption threshold in Spain?
No, but personal and family deductions reduce what’s taxed.
❓ Do I need to file if my only income is a foreign pension?
Yes — if you’re a resident, it must be declared, even if taxed abroad.
❓ Can I file my Spanish taxes from abroad?
Yes, via the Agencia Tributaria online portal, with proper digital ID.
🧑⚖️ Expert Tip: Consider the Beckham Law
If you’re a new expat working in Spain, the Beckham Law allows you to:
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Pay a flat 24% tax rate
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Only on Spanish-source income
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For 6 years
This is a major benefit if structured correctly — read our Beckham Law guide here.
📞 Need Help Filing Your Spanish Income Taxes?
Borderless Lawyers works with expats and residents across Spain to:
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Prepare & file IRPF returns
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Maximize deductions
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Navigate pension or remote income taxes
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Ensure full compliance with Agencia Tributaria