Taxes for Expats Living in Spain 2026

Taxes in Spain are one of those topics that makes people anxious, and honestly, the system is complicated enough that the anxiety is somewhat justified. But it is manageable once you understand the basics.

Here is what you need to know as an expat living in Spain in 2026. This is not tax advice (talk to a professional for your specific situation), but it will help you understand the landscape.

Are you a tax resident?

You are considered a Spanish tax resident if any of these apply:

• You spend more than 183 days per year in Spain
• Your “center of economic interests” is in Spain (meaning most of your income or business is here)
• Your spouse and/or minor children live in Spain (there is a presumption of residency in this case, though you can challenge it)

If you are a tax resident, Spain taxes your worldwide income. If you are not a tax resident, you are only taxed on income sourced from Spain.

Income tax rates (IRPF)

Spain uses progressive tax rates. For 2026, the general rates are:

Taxable income (EUR)	Tax rate
0 - 12,450	19%
12,450 - 20,200	24%
20,200 - 35,200	30%
35,200 - 60,000	37%
60,000 - 300,000	45%
300,000+	47%

These rates combine the state rate and the general regional rate. Some autonomous communities have slightly different rates, so your effective rate might vary.

Compared to other Western European countries, these rates are roughly middle of the pack. Higher than Portugal (for now), lower than France for most income levels.

The Beckham Law (special tax regime)

This is the big one that gets everyone’s attention. Officially called the “Regimen Especial de Trabajadores Desplazados,” the Beckham Law lets qualifying new residents pay a flat 24% tax rate on Spanish-sourced income instead of the regular progressive rates.

Who qualifies

• You have not been a Spanish tax resident in the 5 years prior to moving
• You moved to Spain because of a work contract, company appointment, or (since 2023) as a digital nomad or entrepreneur under the Startups Law
• You apply within 6 months of starting work in Spain or registering with social security

What you get

• Flat 24% tax rate on income up to 600,000 euros (47% above that)
• You are taxed as a non-resident, meaning only Spanish-sourced income is taxed (not your worldwide income)
• The regime lasts for the tax year you arrive plus the following 5 years (6 years total)

Is it worth it?

For most people earning above roughly 35,000 euros, yes. The savings compared to regular progressive rates can be substantial. If you earn 70,000 euros, you are saving thousands per year.

But there are some catches:

• You cannot claim many of the deductions available to regular tax residents
• If you have significant income from investments or assets in other countries, the interaction between tax treaties and this regime can get complicated
• Some regions offer additional tax benefits that might be more valuable depending on your situation

This is absolutely an area where you should talk to a tax advisor. The upfront cost of good advice pays for itself many times over.

Self-employed taxes (Autonomo)

If you are self-employed in Spain, you need to register as an autonomo. Here is what that involves:

Social security contributions

The autonomo social security system moved to an income-based model. Your monthly contribution depends on your net income:

• Minimum contribution (for lowest earners): around 230 euros per month
• Average contribution for someone earning 2,000-2,500 net/month: roughly 300-350 euros per month
• Maximum contribution: around 530 euros per month

These contributions give you access to public healthcare and eventually the public pension.

Income tax (IRPF)

On top of social security, you pay income tax on your net earnings at the progressive rates listed above (or the Beckham Law rate if you qualify).

You need to make quarterly tax filings (Modelo 130) and an annual tax return (Renta). The quarterly filings are essentially estimated tax payments of 20% of your net income.

IVA (VAT)

If you sell services to Spanish clients or EU consumers, you typically charge 21% IVA and file quarterly IVA returns (Modelo 303). If all your clients are outside Spain, you might be exempt from charging IVA, but you still need to file the forms.

Expenses you can deduct

As an autonomo, you can deduct legitimate business expenses:

• Coworking space or a portion of your home office
• Equipment (computer, phone, etc.)
• Professional services (accountant, lawyer)
• Travel related to work
• Internet and phone (proportional business use)
• Professional training and courses

Keep receipts and invoices for everything. Spain takes documentation seriously.

Wealth tax (Impuesto sobre el Patrimonio)

Spain has a wealth tax on net assets above certain thresholds. The exempt amount varies by region but is typically around 700,000 euros, plus your primary residence is exempt up to 300,000 euros.

If your worldwide net assets exceed the threshold, you will owe wealth tax at rates of 0.2% to 3.5% depending on the amount and region.

Some regions (like Madrid) have historically reduced or eliminated this tax, but there is also a national “solidarity tax” on very high wealth that applies regardless.

Modelo 720: reporting foreign assets

If you have assets outside of Spain worth more than 50,000 euros in any of these categories, you need to file an informational return (Modelo 720):

• Bank accounts
• Securities, investments, insurance
• Real estate

This is an informational return, not a tax payment. But the penalties for not filing it used to be extreme. The EU struck down some of those penalties, but you should still file it if you are required to.

Double taxation treaties

Spain has tax treaties with most major countries to prevent you from being taxed twice on the same income. The specifics depend on the treaty with your home country. Common situations:

• US citizens: You still need to file US taxes. The Foreign Tax Credit and FEIE help avoid double taxation, but it is complicated. Get a specialist.
• UK residents turned Spanish residents: The UK-Spain treaty covers most income types. Pensions can be tricky.
• Other EU countries: Generally well-covered by treaties and EU coordination rules.

Practical tips

1. Get a tax advisor from day one. Seriously. The cost of a good gestor or tax advisor (100-200 euros per quarterly filing for autonomos, or a few hundred for an annual filing for employees) is nothing compared to the headaches of getting it wrong.
2. Apply for the Beckham Law early. You have 6 months from your start date. Do not miss this deadline.
3. Keep organized records. Spanish tax authorities can audit you and they expect documentation.
4. File your Renta (annual tax return) even if you think you do not owe anything. Not filing is worse than filing a zero return.
5. The tax year is the calendar year. Returns are due between April and June of the following year.
6. Do not ignore the Modelo 720 if you have significant foreign assets.

Taxes are nobody’s favorite topic, but getting them right from the start saves you a lot of stress later. Spain’s system is workable once you understand it. Just do not try to figure it all out on your own.