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Spain Tax Guide

Europe
Last verified June 2026
Sources & verification

Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.

PwC Worldwide Tax Summaries — SpainAgencia Tributaria
High Tax Comparator

Best for

  • Special regime available

    Beckham Law (Special Inbound Regime) — Flat 24% tax on Spanish-source employment income up to €600,000 (47% above) for first 6 years; forei…

Personal Tax Score
38/100
High Tax
Business Tax Score
65/100
Moderate

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days or center of vital interests or principal place of business

Income Tax Rates

Top Marginal Rate
47-54%%
Structure
Progressive 19-47% state + regional variations (up to 54% in some autonomous communities like Catalonia/Valencia)

Foreign Income Treatment

System
Worldwide
Details
Spanish residents taxed on worldwide income; foreign tax credits available

Investment Income

Capital Gains
19-30%%
Dividends
19-30%%
Interest
19-30%%

Savings income (capital gains, dividends, interest): 19% up to €6k, 21% to €50k, 23% to €200k, 27% to €300k, 30% above €300k

Wealth & Inheritance

Wealth Tax
Yes - Wealth tax 0.2-3.5% on net assets (Madrid and Andalusia effectively exempt via 100% bonificación); temporary solidarity tax 1.7-3.5% above €3M still in force, now extended through 2026.
Inheritance Tax
Yes - Inheritance tax varies by region; up to 36% in some areas. Many regions (Madrid, Andalusia, Galicia) have near-zero effective rates for close family.

Special Regimes

Beckham Law (Special Inbound Regime)
Flat 24% tax on Spanish-source employment income up to €600,000 (47% above) for first 6 years; foreign income not taxed. Expanded 2023 to cover qualifying entrepreneurs, highly-qualified professionals, and Digital Nomad Visa holders.
Digital Nomad Visa (Beckham-eligible path)
Income threshold raised to €2,849/month from 1 January 2026 (225% of the 2026 SMI). Dependants: +75% SMI/adult, +25% SMI/minor.

Practical Notes

High tax burden varies materially by region. Beckham Law attractive for high-earning expats with employment income (does not cover freelance/autonomo). Wealth tax applies but Madrid/Andalusia bonificaciones effectively zero it out. Solidarity wealth tax on >€3M extended through 2026.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
25%
Effective Rate Note
25% standard rate; 15% for new companies first 2 years; 30% for credit institutions
Free Zone / Incentives
Canary Islands Special Zone (ZEC) offers 4% rate

Withholding Taxes

Dividends
19%
Interest
19%
Royalties
24%

VAT / GST

Rate
21%
Note
21% standard VAT; reduced rates 10% and 4%

Compliance & Substance

Substance Requirements
High - strict requirements
Compliance Friction
High - complex tax system

Notable Regimes

  • Beckham Law for individuals
  • ZEC Canary Islands 4%
  • Patent Box

OECD Pillar Two (15% global minimum tax)

LiveQDMTT from 31 Dec 2023

Law 7/2024 transposed EU Directive. Implementation was delayed but applies retroactively to FYs starting on or after 31 Dec 2023.

See full implementation tracker

Tax Treaty Network

US treatyYes
UK treatyYes
US totalizationYes
Total treaties~95

US-Spain treaty includes savings clause and limitation-on-benefits provision. Totalization in force.

See full treaty matrix

Data Sources

PwC Worldwide Tax Summaries — SpainAgencia Tributaria

Last verified: June 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in Spain?

Spain has a top personal income tax rate of 47-54%. The tax structure is: Progressive 19-47% state + regional variations (up to 54% in some autonomous communities like Catalonia/Valencia). See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Spain?

Spain uses a worldwide system for foreign income. Spanish residents taxed on worldwide income; foreign tax credits available

What are the residency requirements for Spain?

Tax residency in Spain generally requires 183 days of physical presence. 183 days or center of vital interests or principal place of business. Always verify current rules with official sources.

Is there a wealth tax in Spain?

Yes, Spain does have a wealth tax. Wealth tax 0.2-3.5% on net assets (Madrid and Andalusia effectively exempt via 100% bonificación); temporary solidarity tax 1.7-3.5% above €3M still in force, now extended through 2026.

What is the corporate tax rate in Spain?

The corporate tax rate in Spain is 25%. 25% standard rate; 15% for new companies first 2 years; 30% for credit institutions

US citizen moving to Spain? Read this first.

Spain's top personal rate of 47% means the Foreign Tax Credit (FTC) usually wins over FEIE for US citizens.

  • •FTC (Form 1116) credits Spain tax against US tax dollar-for-dollar. Because Spain tax exceeds US tax on the same income, you typically owe zero US tax and accumulate carryforward credits (10-year carry).
  • •Self-employment tax is normally exempted via the US-Spain totalization agreement — pay into one social security system, exempt from the other.
  • •For earned income near the FEIE cap (~$130k), FEIE is sometimes simpler administratively. Above the cap, FTC strategy almost always wins given Spain's rates.
  • •Spain residency days threshold: 183. Treaty tie-breaker rules (where applicable) help with double-tax avoidance.
Read the full US-citizen moving-abroad guide

Need someone to actually plan Spain for you?

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