What a retiree's total Spanish tax picture looks like

Key rules

• Pensions: Pensions, public and private, are taxed in the general base at progressive rates, not at the savings rates.
• Savings income: Interest, dividends and gains on shares and funds are taxed separately in the savings base, from 19% to 28%.
• Rent: Rent from property you own is added to your pension in the general base.
• Allowances: Allowances are deducted before the rates apply, and they are higher once you are over 65.

The short version

Your Spanish tax comes in two parts. Your pension, and any rent you collect, go into the general base and are taxed at progressive rates. Your interest, dividends and gains on shares and funds go into the savings base and are taxed at lower, separate rates. Allowances come off before the rates apply. This page covers Spanish tax residents.

What goes where

• Pensions: Public and private pensions, including foreign state pensions, count as work income. They are taxed in the general base at progressive rates, not at the savings rates.
• Rent from a property you own: This is capital income from real estate. It also goes in the general base, so it is added on top of your pension. Long-term residential lets can get a 60% reduction if conditions are met. This was changed in 2023, so check the current conditions before you count on it.
• Interest and dividends: These go in the savings base.
• Gains from selling shares and funds: These also go in the savings base. Some other assets can differ, and some insurance products are treated differently.

How much is tax-free

The personal minimum is €5,550 a year. It rises by €1,150 if you are over 65, and by a further €1,400 if you are over 75. Work income, which includes pensions, also gets a general expense deduction of €2,000. Low-income workers get an extra reduction, but pensioners are treated differently from employees. Some regions change these amounts.

The rates

General base (pension and rent). The rate has a state part and a regional part. The state scale is:

• 9.5% up to €12,450
• 12% up to €20,200
• 15% up to €35,200
• 18.5% up to €60,000
• 22.5% up to €300,000
• 24.5% above that

Each region adds its own scale. Together they typically give a combined scale of 19% to 47%, and the exact figures depend on where you live.

Savings base (interest, dividends, gains):

• 19% up to €6,000
• 21% from €6,000 to €50,000
• 23% from €50,000 to €200,000
• 27% from €200,000 to €300,000
• 28% above €300,000

Each base is taxed on its own scale. A large pension does not push your savings income into a higher savings rate, and your savings income does not raise the rate on your pension.

Do you have to file a return?

You do not have to file if your work income, including pensions, is below €22,000 a year from a single payer. The limit drops to €15,876 in two cases. One is when you have more than one payer and the second and later payers together paid you over €1,500. The other is when your pension comes from a payer that is not obliged to withhold tax.

Other income can also force you to file. That includes rent, and savings income and capital gains above €1,600 from certain sources. You may also need to file if you claim deductions or have over €1,000 of other income. If you have rent or savings income, assume you will need to file and confirm with the tax agency.

The questions below cover the allowance, filing, savings rates and rent in short answers.

Frequently asked questions

How much of my income is tax-free as a retiree over 65?

The personal minimum is €5,550 a year, plus €1,150 if you are over 65 and a further €1,400 if you are over 75. This amount is treated as income that is not taxed. Some regions change these amounts, so check your region's rules.

Do I have to file a tax return if I only receive a pension?

Not if your pension is below €22,000 a year and comes from a single payer. The limit falls to €15,876 if you have more than one payer and the second and later payers together paid over €1,500. Rent, interest or capital gains can also make you file.

What savings tax rates apply to my interest and dividends?

Interest, dividends and capital gains are taxed at 19% up to €6,000, 21% from €6,000 to €50,000, and 23% from €50,000 to €200,000. Above that, the rate is 27% up to €300,000 and 28% beyond. The same scale is expected to apply for 2026.

Is rental income taxed with my pension or with my savings?

Rental income is taxed with your pension in the general base, not at the savings rates.

What total tax rate applies to my pension and rent combined?

The general scale combines a state scale and a regional scale, and together they typically run from 19% to 47%. Your exact rate depends on your region. The state part starts at 9.5% up to €12,450 and rises to 24.5% above €300,000.