Living in Spain? Know Your Tax Duties
Whether you’re an expat, a digital nomad, or retiring in the sun, Spain’s tax system affects you the moment you become a tax resident. The Spanish Tax Agency (Agencia Tributaria) imposes various taxes on individuals depending on their residency status and source of income.
This guide explains how individuals are taxed, what tax rates apply, and how to stay compliant.
📍 Who Is a Tax Resident in Spain?
You are considered a tax resident in Spain if you meet any of the following conditions:
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You spend more than 183 days in Spain in a calendar year
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Your center of economic interests is in Spain
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Your spouse and dependent children live in Spain (unless you prove otherwise)
🔍 **Tax residents pay tax on their worldwide income
🚫 Non-residents only pay tax on Spanish-source income
💸 Spanish Personal Income Tax (IRPF)
Spain applies a progressive income tax for residents. It includes both:
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State tax (central government)
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Regional tax (autonomous community)
📊 Income Tax Rates for Residents (Approximate Combined)
| 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% (or more in some regions) |
✔️ Spain also taxes capital gains, investment income, and rental income, with separate rates.
🧾 Taxation for Non-Residents
Non-residents pay Non-Resident Income Tax (NRIT):
| Income Type | NRIT Rate |
|---|---|
| Employment, rental, business | 24% (or 19% for EU/EEA residents) |
| Dividends, interest, royalties | 19%-24% |
| Capital gains | 19% |
🛑 Non-residents cannot deduct expenses, unlike residents.
🏠 Taxation of Property in Spain
If you own property in Spain, taxes include:
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Property Tax (IBI) – Annual local tax
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Rental Income Tax – Taxed at NRIT or IRPF
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Imputed income – If unused, a small % of cadastral value is taxed
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Capital Gains Tax – On sale of the property
🧮 Make sure to register for tax and file returns, even if you live abroad.
💰 Wealth Tax (Impuesto sobre el Patrimonio)
Applies to residents and non-residents with Spanish assets over a threshold.
| Resident Status | Tax Base |
|---|---|
| Residents | Worldwide assets above €700,000 (some regions vary) |
| Non-Residents | Only Spanish assets |
Rates range from 0.2% to 3.5%, depending on region and net wealth.
🧾 Key Tax Filing Deadlines
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IRPF (resident income tax): April to June
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NRIT (non-residents): Quarterly or annually
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Wealth Tax: Filed together with IRPF
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Modelo 720: Declaration of overseas assets (if applicable)
⚠️ Penalties for late filing or non-compliance can be substantial.
🧑💼 The Beckham Law: Special Regime for Expats
If you’re relocated to Spain by an employer, you may qualify for the Beckham Law (Régimen especial):
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Flat tax rate of 24% on Spanish income (up to €600,000)
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Applies for 6 years
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No tax on foreign income or wealth
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Available to new residents (non-Spanish nationals)
📌 Application must be filed within 6 months of registering with Social Security.
🧮 How Borderless Lawyers Can Help
We assist individuals in:
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⚖️ Determining tax residency and compliance
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🧾 Filing IRPF, NRIT, Modelo 720, and wealth tax
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📚 Structuring assets tax-efficiently
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✅ Applying for Beckham Law or special regimes
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🏡 Handling property tax and income returns
💬 What Clients Say
“I moved from Argentina and had no idea I had to file global income in Spain. Borderless Lawyers sorted my returns and avoided big penalties.”
— Catalina R., Valencia
✅ Live in Spain, Tax Confidently
Navigating Spanish taxes can be complex — especially if you’re new to the country or investing from abroad. Our legal and tax professionals guide you every step of the way.