Taxes in Spain for Expats: A Practical Guide for 2026

Spain taxes individuals on a progressive scale through IRPF (Impuesto sobre la Renta de las Personas Físicas). Once you are tax resident, your worldwide income enters the same system as Spanish nationals — with some special regimes for new arrivals.

• Tax year: calendar year (1 January to 31 December)
• Filing deadline: April to June via Renta Web (AEAT online portal) or a gestor
• Employers withhold IRPF monthly via nómina — the annual return reconciles over/underpayment
• Autónomos file quarterly prepayments (Modelo 130 or 131) plus the annual IRPF return
• Regional variations: autonomous communities set their own tax rates on top of state brackets
• Agencia Tributaria (AEAT) is the authority — not Extranjería or Social Security

IRPF applies progressive rates to your taxable base (base imponible). State and regional rates combine for the total liability. Figures below are approximate state rates — your autonomous community adds its own.

• Up to €12,450: 19% state rate
• €12,450–€20,200: 24%
• €20,200–€35,200: 30%
• €35,200–€60,000: 37%
• €60,000–€300,000: 45%
• Above €300,000: 47%
• Regional surcharge: typically 9.5%–18.5% additional depending on comunidad autónoma and income level
• Madrid and Andalucía offer reduced regional rates; Catalonia and Valencia trend higher

The Régimen Especial de Impatriados — commonly called the Beckham Law — offers a flat 24% rate on Spanish-source employment income for eligible new residents. It does not apply to all expats.

• Eligibility: not tax resident in Spain for the previous five years
• Must relocate for employment, a company director role, or a highly qualified professional position
• Application: file Form 149 with AEAT within six months of starting Social Security registration or signing the employment contract
• Flat rate: 24% on employment income up to €600,000; 47% above that threshold
• Duration: applies for the year of arrival plus the following five tax years
• Foreign-source income is generally exempt during the regime — but you must still declare it
• Does not apply to autónomos, pensioners, or Digital Nomad visa holders without qualifying employment

Self-employed workers (autónomos) face a more complex filing calendar than employees. Budget for both Social Security and tax prepayments from month one.

• RETA Social Security: monthly quota starting at ~€230/month (tarifa plana for new autónomos, rising over 12–24 months)
• IRPF quarterly prepayment (Modelo 130): 20% of net profit — filed in April, July, October, and January
• IVA (VAT): quarterly Modelo 303 if your activity is subject to VAT — 21% standard rate
• Annual IRPF return (Modelo 100): reconciles quarterly payments against actual annual profit
• Deductible expenses: office rent, equipment, professional services, travel, and social security contributions
• Gestoría fees: most autónomos use an accountant (€50–150/month) for filings and compliance

Beyond income tax, expats who own property or hold significant assets face additional obligations.

• IBI (Impuesto sobre Bienes Inmuebles): annual municipal property tax — rates vary by ayuntamiento (0.4%–1.1% of cadastral value)
• Wealth tax (Impuesto sobre el Patrimonio): applies in most regions above ~€700,000 net wealth (thresholds vary)
• Madrid and Andalucía offer significant wealth tax reductions or exemptions
• Rental income: taxed at progressive IRPF rates after deductible expenses (mortgage interest, repairs, depreciation)
• Plusvalía municipal: capital gains tax on property sales, calculated by the ayuntamiento
• Impuesto sobre Sucesiones y Donaciones: inheritance and gift tax — rates vary dramatically by region

Once you are tax resident, gains from selling shares or ETFs, dividends, and interest all enter the base del ahorro (savings base) — taxed separately from salary at progressive rates. Foreign brokers do not report to AEAT, so portfolio tax is largely self-declared on Modelo 100.

• Savings rates (2026): 19% / 21% / 23% / 27% / 30% on bands up to €6k / €50k / €200k / €300k / above (Law 7/2024 raised the top rate from 28% from 1 January 2025)
• Share and ETF sales: capital gain = sale price minus acquisition cost including commissions; no tax until you sell
• FIFO mandatory: when selling partial holdings, AEAT requires First-In-First-Out cost basis — not the average-cost figures many US brokers show
• Dividends: taxed in the savings base; Spanish brokers withhold 19%; for foreign dividends declare the gross amount and deduct foreign withholding under Art. 80 LIRPF (e.g. 15% US treaty rate)
• Foreign brokers (IBKR, DeGiro, Trading 212): no Spanish withholding and no AEAT pre-fill — enter all trades manually in Modelo 100 Section F2; convert to EUR at ECB rate on each trade date
• Losses offset gains in the same year; excess can offset up to 25% of positive dividend/interest income; unused losses carry forward four years
• Two-month rule: losses on listed shares cannot be used if you buy the same issuer within two months before or after the loss sale while your holding size stays constant
• Modelo 720: declare foreign broker accounts and securities if any category exceeds €50,000 on 31 December (deadline 31 March)

Employer-granted stock options and RSUs are taxed as employment income — not portfolio gains. Self-directed options trading (calls and puts) follows different timing rules. Expats with US or UK equity comp should plan around vesting dates and relocation timing.

• Stock options and RSUs: taxed as rendimientos del trabajo (employment income) at ordinary IRPF rates — not the 19–30% savings rates
• Taxable moment: non-transferable options at exercise (market value minus strike); RSUs at vesting (full market value); ESPP typically on the purchase discount
• €12,000 annual exemption on employer share awards if conditions under Art. 42.3(f) LIRPF are met
• Startup employees (Law 28/2022): exemption up to €50,000/year if the company qualifies as emerging at grant; tax on the excess can be deferred until IPO, share sale, or ten years
• Relocation pro-rata: only the portion of equity income tied to work performed in Spain is Spanish-source — options fully vested before your move are generally not taxed in Spain
• Beckham Law: exercise/vesting during the regime may qualify for the flat 24% rate on Spanish-source employment income if Form 149 was filed in time
• Selling shares after exercise: triggers a separate capital gain in the savings base (sale price minus the value already taxed at exercise/vesting)
• Options trading: premium is not taxed when received — tax accrues when the contract closes (expiry, assignment, or buy-to-close); if assigned, the premium adjusts your stock cost basis instead

Spain's tax system is digitised but unforgiving of missed deadlines. Set up your filing infrastructure in the first month of tax residency.

• Obtain a Cl@ve or digital certificate (certificado digital) for AEAT online services
• Register your fiscal address with Form 030 within one month of becoming tax resident
• If employed, verify your employer is withholding correctly — check your nómina and annual certificado de retenciones
• Declare foreign bank accounts and assets via Modelo 720 by 31 March if thresholds are met
• Use a gestor or tax adviser for your first IRPF return — the learning curve is steep
• Keep all invoices (facturas) for autónomo deductions — AEAT audits are increasingly automated