🇪🇸Spain · Taxes
Spain — Taxes
Spain taxes in 2026: IRPF 19-47 % plus a 0-3 % regional surcharge, Beckham 24 % flat for 6 years (salaried only), autónomo TGSS €230-1,270/month, regional patrimonio plus a €3M solidarity overlay, Modelo 720 above €50,000. The PT-RU treaty remains in force.
Spain is not one tax jurisdiction but seventeen. State IRPF (19-47 %) combines with the comunidad autónoma surcharge (0-3 %). The Beckham law () grants impatriates a 24 % flat rate on Spanish income for six years, but does not work for autónomos. Patrimonio (wealth tax) runs from full exemption in Madrid to a full scale in Catalonia. Since 2023 a state Impuesto de Solidaridad captures wealth above €3M everywhere. This chapter maps regimes and the regional matrix. Figures are Q2 2026.
Base logic: residency + federation
A Spanish tax resident pays (Impuesto sobre la Renta de las Personas Físicas) on worldwide income. Residency triggers at 183 days days of physical presence in the calendar year, or at the existence of a "main economic centre" in Spain (the principal source of income or assets). A family with spouse and children resident in Spain, with the applicant spending fewer than 183 days, can still be classified as resident by presumption (presunción de residencia).
Spain's distinguishing feature is a tax federation. The state collects base IRPF and most IVA. The comunidad autónoma adds its IRPF surcharge (0-3 % on top), runs patrimonio (wealth tax), manages gift and inheritance, and partly controls IRPF deductions and reliefs. The same €100,000 of income is taxed differently in Madrid and in Catalonia, with a 4-5 percentage-point gap in effective rate.
Three doors to a discount. , a flat 24 % on Spanish income up to € 600,000 for 6 yr years for impatriates, salaried employees of foreign companies, directors, DN-visa holders, and innovative entrepreneurs. Tarifa Plana for autónomos, a year-one social-security relief of € 230/mo/month. Regional relief in Madrid and Andalusia: near-zero IRPF surcharge, zero net patrimonio, generous gift and inheritance breaks. Each of the three operates independently.
IRPF: state + regional scale
The state IRPF scale for 2026:
- up to €12,450: 19 %
- €12,450 - €20,200: 24 %
- €20,200 - €35,200: 30 %
- €35,200 - €60,000: 37 %
- €60,000 - €300,000: 45 %
- above €300,000: 47 %
The regional surcharge stacks on top. 2026 matrix (simplified):
- Madrid, regional part -1 % to +0.5 % (effectively the lowest in the country), with bonifications on mortgage interest and education. Top rate around 45 %.
- Andalusia, regional part -0.5 % to 0 %, gift and inheritance reliefs. Top rate around 45.5 %.
- Catalonia, regional part up to +3 %, full patrimonio. Top rate around 50 %.
- Valencia, regional part up to +2.5 %, regime similar to Catalonia. Top rate around 49.5 %.
- Basque Country and Navarre, separate "foral" tax systems with their own schedules, broadly comparable to the national one.
Effective rate at €30,000 of annual income is around 18-22 %, at €60,000 around 26-30 %, at €100,000 around 32-37 % depending on region. Typical Western European territory. Joint filing for spouses (declaración conjunta) usually wins when incomes are unequal. Deductions: children (€2,400-4,500 by age and count), mortgage interest (regional), pension contributions (up to €1,500/year into plan de pensiones), charitable giving (up to 80 % credit).
What sits outside IRPF. Patrimonio (see below), (the municipal property tax, covered in the Property chapter), gift and inheritance (through the comunidad autónoma), IVA. Social-security contributions (TGSS) are formally separate but withheld by the employer from gross pay.
The Beckham law after the 2023 widening
Régimen Especial de Impatriados (Law 35/2006), known as the "Beckham law" after David Beckham, who first used it on his 2003 move to Real Madrid. Until 2022 it covered only salaried employees on a Spanish payroll. The 2023 reform (Law 28/2022, Ley de Startups) widened it to digital nomads on a DN visa, freelancers under specific conditions, and innovative entrepreneurs.
What it gives
- 24 % flat on Spanish employment income up to € 600,000 per year. Income above the cap is taxed at the standard 47 % top.
- Exemption on most foreign-source income (foreign employment, dividends, interest, capital gains), with the exception of passive income from jurisdictions without a Spain DTT.
- Duration of 6 yr years including the year of arrival. Not renewable.
- No obligation to file Modelo 720 (foreign-asset declaration).
- Patrimonio applies only to Spanish assets, not worldwide.
Who qualifies
- Salaried employees of foreign or Spanish companies moving for work.
- Directors of companies (provided they do not own more than 25 % of shares).
- Digital nomads on a DN visa, salaried by a foreign firm. This is the new 2023 category.
- Highly qualified specialists (PAC) and managers of innovative startups.
- Condition: not a Spanish tax resident in the 5 years before relocation. File the Beckham election within 6 months of arrival (Modelo 149).
Who does NOT qualify. Autónomos: freelancers registered in RETA are excluded, even on a DN visa. This is the sharp edge: an IT freelancer on a DN visa pays 24 % flat (Beckham) if structured as a salaried employee of a foreign firm, and the standard IRPF scale (up to 47 % + region) if structured as an autónomo. Alternative for autónomos, incorporate an SL (Sociedad Limitada) and run as a salaried director; Beckham then applies, but the legal structure is heavier and requires a Spanish accountant from day one.
Family. Spouse and children can elect Beckham separately if they too were non-resident in the prior 5 years. Especially valuable when both spouses work.
Autónomo: expensive but predictable
Trabajador Autónomo, the Spanish self-employed status. Registered with Agencia Tributaria (Modelo 037 for most) and Tesorería General de la Seguridad Social (TGSS) through Régimen Especial de Trabajadores Autónomos (RETA). Without RETA registration, fines and an inability to file IRPF.
TGSS social contribution
Since 2023 the system ties the contribution to net income (rendimientos netos). A 15-tier scale from € 230/mo/month (for income below €670/month) to € 1,270/mo/month (for income above €6,000/month). Year-one Tarifa Plana of €230/month for newly registered autónomos. From year two, the income-tier ladder kicks in:
- up to €670/month income: €230-300/month SS
- €670-1,166/month: €290-310/month SS
- €1,166-1,700/month: €310-440/month SS
- €1,700-2,760/month: €440-700/month SS
- €2,760-3,600/month: €700-885/month SS
- €3,600-4,480/month: €885-1,040/month SS
- above €6,000/month: €1,270/month SS
A fixed monthly amount, not a percentage. Covers healthcare (SNS-ES), pension (at a reduced rate vs salaried), temporary disability, parental leave, unemployment-equivalent (cessation of activity) after one year.
IRPF for autónomos
Runs on the standard IRPF scale (19-47 % + region) over net income (revenue minus documented expenses). Documented expenses are deductible: office rent, equipment, professional subscriptions, business travel, accounting (gestoría €40-150/month). No equivalent of the Portuguese regime simplificado with standard coefficients; everything is actuals in Spain.
Relief for new autónomos. In the first two years, a flat 15 % IRPF on net income (instead of the progressive scale) for net income up to €60,000/year. Combines with the Tarifa Plana on SS. For most first-year freelancers it cuts the effective load by 5-10 percentage points.
Example. A freelancer earns €40,000 revenue, deducts €5,000 expenses, net €35,000. IRPF 15 % flat (new-autónomo relief) = €5,250. Plus TGSS €290/month × 12 = €3,480. Plus IVA 21 % charged to Spanish customers (if not B2B-EU reverse charge). Total tax-and-SS load roughly 25-28 % of revenue ex-IVA. By year three after the relief expires, load rises to 35-40 %.
IVA for autónomos. Most categories must charge 21 % IVA on services to Spanish residents and businesses. Services to non-EU clients are zero-rated. Services to EU B2B clients use reverse charge. IVA returns are filed quarterly (Modelo 303) and annually (Modelo 390).
IVA and social contributions
IVA (Impuesto sobre el Valor Añadido, the Spanish VAT). Three rates: 21 % standard (most goods and services), 10 % reduced (restaurants, hotels, transport, certain foods), 4 % super-reduced (basic food basket: bread, milk, vegetables, medicines).
TGSS on salaried work. 6.35 % withheld from the gross pay plus 30.6 % paid directly by the employer. Combined 36.95 % social-security load on every payroll, largely invisible to the employee. Typical Western European load, above the UK 25 % and comparable to the Italian 41 %.
The Canary Islands. Special tax regime: IVA is replaced by IGIC (Impuesto General Indirecto Canario) at 7 % standard, 3 % reduced, 0 % basic. IRPF is the same as on the mainland, but local patrimonio reliefs apply.
Investments, dividends, crypto
Capital gains and dividends (rendimientos del ahorro). Progressive scale:
- up to €6,000: 19 %
- €6,000 - €50,000: 21 %
- €50,000 - €200,000: 23 %
- €200,000 - €300,000: 27 %
- above €300,000: 28 %
A separate scale, not part of IRPF. Capital gains from property held over one year follow the same scale. Gains in the first year of holding are added to the ordinary IRPF base (rendimientos del trabajo) and taxed progressively up to 47 % + regional.
Cryptocurrency. From 2024, Spain requires reporting crypto assets via Modelo 721 (separate from Modelo 720). Reporting threshold is €50,000 in crypto on 31 December. Tax treatment is ordinary asset: sales of crypto follow the 19-28 % capital-gains scale with no holding-period exemption (in contrast with Portugal's 0 % after 365 days). Mining and staking are taxed as self-employment income.
Plan de Pensiones. Relief: up to €1,500/year of contributions is deductible from the IRPF base (the cap was €8,000 before the 2022 reform reduced it). Comunidad autónoma may add reliefs (Madrid +€1,000). Pension withdrawal is usually at retirement and taxed at ordinary IRPF.
Brokerage gains through an EU broker are usually withheld automatically; through non-EU brokers (Interactive Brokers, Saxo) self-declaration in Modelo 100 is required. The tax-residency certificate (Certificado de Residencia Fiscal) is issued by Agencia Tributaria online for free; foreign brokers and payers often request it before applying reduced treaty withholding.
Patrimonio and the Impuesto de Solidaridad
Patrimonio (Impuesto sobre el Patrimonio), the state tax on net wealth for residents and non-residents with Spanish-located assets. State exemption floor € 700,000 of net wealth (after €300,000 deduction on the primary residence). Progressive rate 0.2-3.5 % above the floor.
Each comunidad autónoma can adjust the floor and the rate:
- Madrid, 100 % rebate (bonificación) on the state part. Net load zero for all Madrid residents. Madrid has held this since 2008; Andalusia matched in 2022.
- Andalusia, 100 % rebate since 2022.
- Catalonia, full patrimonio with a €500,000 floor (below the state). Progressive scale up to 2.75 %. Wealthy Catalans pay millions per year.
- Valencia, full patrimonio with a €500,000 floor. Similar to Catalonia.
- Balearic Islands, full patrimonio with a €700,000 floor.
- Canary Islands, partial rebate.
In 2023, in response to "regional dumping" (Madrid and Andalusia collecting no patrimonio, the state losing fiscal share), the government introduced the Impuesto de Solidaridad de las Grandes Fortunas. A state tax on wealth above € 3,000,000, applying in ALL regions. Rates: 1.7 % on €3-5M, 2.1 % on €5-10M, 3.5 % above €10M. Applied to net wealth less the patrimonio already paid in the region. For Madrid and Andalusia residents the solidarity tax is fully due (patrimonio = 0). For Catalans it offsets, partially or fully if patrimonio already covers.
What counts as taxable wealth. Real estate at cadastral value, bank accounts, investments (shares, bonds, funds), jewellery and art above a certain threshold, business shares. Excluded: the primary residence up to €300,000, business assets of a resident entrepreneur (under conditions), pension plans up to a cap.
Modelo 720, foreign-asset reporting
Modelo 720, the annual declaration of foreign assets held by Spanish residents. Introduced in 2012 with notoriously "astronomical" fines for non-filing. In 2022 the Court of Justice of the European Union ruled the fines disproportionate, and Spain revised them: the minimum is now €150 per breach rather than €5,000+. The filing duty remains.
What gets declared. Three categories of foreign assets, each with a € 50,000 threshold:
- Bank accounts (current, savings, deposits) totalling above €50k on 31 December.
- Foreign real estate above €50k market value.
- Investments (shares, bonds, funds, insurance policies with an investment component) above €50k.
If at least one category exceeds the threshold, file for that category. Modelo 721 (from 2024) covers crypto assets above €50k separately. File through the Agencia Tributaria portal by 31 March following the reporting year. Once filed at first crossing, subsequent filings are only required if there is a material change (an increase of more than €20,000 in a category).
What is NOT reportable. Foreign pensions (included in general IRPF), foreign wages (handled via DTT mechanics), physical cash, assets held through offshore corporate structures (a separate, complex topic involving trust structures). The Beckham regime exempts holders from both Modelo 720 and Modelo 721, one of its most valuable features.
Double-tax treaties and the Spain-Russia case
Spain has DTTs with around 90 jurisdictions, including most of the OECD, all of Latin America (with the Ibero-American shortened citizenship community), and the broader Lusophone world. The treaties follow the OECD model: residence-based taxation with foreign-tax credits at source.
Where Spain is unusual. As of Q2 2026, the Spain-Russia treaty remains in force. It has not been unilaterally suspended, unlike the Italy-Russia treaty (suspended by Italy in August 2023 via Decree 585). For residents with passive income from Russian sources, the foreign-tax-credit mechanism via Modelo 100 Anexo C continues to apply normally.
Standard non-EU mechanics. A Spanish resident receiving foreign-source dividends, interest or rent reports the gross amount, with a credit equal to the lower of foreign withholding tax actually paid or the Spanish tax otherwise due. Net result: the higher of the two rates, never both fully. The tax-residency certificate (Certificado de Residencia Fiscal), issued by Agencia Tributaria via the Cl@ve portal, is the document foreign payers typically need before applying reduced treaty withholding.
Spain-Latin America DTTs are particularly broad. The Spain-Mexico, Spain-Argentina, and Spain-Brazil treaties allow generous credit mechanics and align with the 2-year citizenship route for Latin American applicants.
Modelo 100, Agencia Tributaria, Cl@ve
The annual individual return, Modelo 100 (or simply declaración de la renta), is filed via the Agencia Tributaria portal (agenciatributaria.es) between 1 April and 30 June of the year following the tax year. Submission requires the and Cl@ve (the Spanish electronic ID).
Cl@ve is issued at any Agencia Tributaria or Seguridad Social branch using the NIE and an ID document, or remotely via video verification. Free of charge. Foreign residents collect it on the TIE. Activation takes 15-30 minutes with an SMS PIN. Without Cl@ve most public services are unreachable: Agencia Tributaria, Seguridad Social, vehicle registration, programme applications.
Modelo 100 structure. Most data is prefilled by Agencia Tributaria from the source-withholding pipeline (employer payroll, Spanish broker dividends, bank interest). The resident reviews, corrects, signs. The free filing option through Renta Web on the portal handles the standard case; complex cases (autónomo, foreign real estate, crypto) typically run through a gestoría (€80-200) or paid online software (€30-60).
Refund / balance due. IRPF refunds typically arrive August-November to the NIE-linked bank account. Tax due can be split into two instalments: 60 % at filing (by 30 June) and 40 % by 5 November. Late payment carries a 5 % surcharge plus interest; for moderate amounts the tax office is generally willing to grant a payment plan.
Frequently asked
What is the top income tax rate in Spain?
IRPF up to 47 % (47 % state on income above €300,000 plus the regional surcharge up to 3 %). Madrid and Andalusia are the low end (~45 %), Catalonia and Valencia the high end (~50 %). The region is chosen before the city.
Who qualifies for the Beckham law?
Impatriates moving for work: salaried employees of foreign or Spanish companies, directors, DN-visa holders (since 2023), innovative entrepreneurs. 24 % flat on Spanish income up to € 600,000 per year for 6 yr years. Exempt from Modelo 720; patrimonio only on Spanish assets. Autónomos are explicitly excluded.
How much does autónomo cost annually?
TGSS Tarifa Plana € 230/mo/month for the first year; from year two an income tier up to € 1,270/mo/month (for income above €6,000/month). IRPF on top, progressively (19-47 % + region), but a 15 % flat first-two-year relief applies for new autónomos at income up to €60,000/year. Plus IVA 21 % charged to Spanish customers.
How does Catalonia compare with Madrid for a taxpayer?
Madrid: ~0 % regional surcharge (the lowest in Spain), patrimonio 100 % rebated (zero net load), gift / inheritance relieved. Catalonia: surcharge up to 3 %, full patrimonio from €500,000 (progressive scale up to 2.75 %), full gift and inheritance schedules. Top-income gap 3-5 percentage points of effective IRPF, plus potentially millions of patrimonio per year for the wealthy.
What is Modelo 720 and what are the fines?
The annual declaration of foreign assets held by Spanish residents, above € 50,000 per category: bank accounts, real estate, securities. After the 2022 ECJ ruling fines are proportionate (~€150 minimum) rather than the previous astronomical schedule. Modelo 721 (from 2024) covers crypto separately. The Beckham regime exempts holders from both.
Does the Spain-Russia tax treaty still apply?
Yes, in force in 2026, not unilaterally suspended (unlike the Italy-Russia treaty, suspended by Italian Decree 585 in August 2023). A Spanish resident with Russian-source dividends, rent or interest applies the standard foreign-tax-credit mechanism via Modelo 100 Anexo C. The OECD-model logic still applies.
Verified · 2026-04-15