Putting foreign salary and foreign tax paid on your Spanish return

Key rules

• Gross pay: Report foreign salary before foreign tax and social security, not the net amount you received.
• Exchange rate: Use the rate on the date of each payment, and the rate on the withholding date for the foreign tax.
• Credit limit: The credit is the lower of the foreign tax paid and the Spanish tax on that income, calculated per country and income type.
• Carry-forward: Foreign tax above the limit can be carried forward for four years.

Report the gross pay, not what reached your bank

Enter your foreign salary as employment income (rendimientos del trabajo), before foreign income tax and social security were taken off. Spain taxes residents on worldwide income, so the full gross figure goes on the return. The tax already taken abroad is dealt with separately, as a credit.

Convert each payment at the rate on its date

Convert every payment to euros at the exchange rate on the day you received it. The AEAT accepts the ECB reference rate or the Banco de España rate for that date. Do not use one average rate for the whole year.

If you are paid in a foreign currency, you can instead use the actual euro amount credited to your Spanish bank account, where you can show it.

Convert foreign tax withheld at the rate on the date it was withheld. Write down the rates you used.

Claim the foreign tax as tax paid abroad

Foreign income tax withheld on income that Spain also taxes counts as tax paid abroad. You claim it in the Renta WEB section for the international double taxation deduction. There you enter the foreign income, the country and the tax paid.

The credit is the lower of two amounts:

• the foreign tax you actually paid, and
• the Spanish tax on that same income, worked out as your average Spanish tax rate multiplied by the net foreign income.

It is calculated separately for each country and each type of income. If the foreign tax is higher than the Spanish tax on that income, you lose nothing at once: the excess can be carried forward for four years.

Tax that a treaty does not allow the other country to charge, and that you could reclaim there, does not qualify. Read the treaty between Spain and the country that taxed you to see which tax counts.

Social security paid abroad

Foreign social security you paid as an employee is not a tax credit. Deduct it as an expense against your employment income, the same way as Spanish contributions. The general 2,000 euro deduction for other expenses also applies (for 2025 and earlier).

Some income may be exempt or reduced, for example certain work done abroad, but only under conditions. Ask a tax adviser or the AEAT before assuming it applies to you.

Keep proof

Keep payslips, foreign tax statements and your note of exchange rates. The AEAT may ask for evidence of the foreign tax paid. The checklist and FAQ below cover the steps and common questions.

Checklist

• Convert each payment to euros at the ECB or Banco de España rate on the date you received it, or use the actual euros credited to your Spanish account.

• Enter the country and type of income for each foreign income, since the credit is calculated separately for each.

• Check the treaty with the country that taxed you, to confirm which foreign tax qualifies for the credit.

• Keep payslips, tax statements and a note of the exchange rates you used in case the AEAT asks for proof.

Frequently asked questions

What happens if my foreign tax is higher than the Spanish tax on that income?

You get credit only up to the Spanish tax that corresponds to that foreign income, and the excess can be carried forward for four years. The limit is the Spanish average effective rate multiplied by the net foreign income. It is worked out separately by country and by type of income.

Can I use the euros that reached my Spanish bank account instead of an official exchange rate?

Yes, if you are paid in a foreign currency you can use the actual euro amount credited to your Spanish bank account, where you have it. Otherwise use the ECB or Banco de España rate on each payment date. Keep a note of the rate you used.

Can I deduct foreign social security contributions from my foreign salary?

Yes, contributions you paid as an employee can be deducted as expenses against your employment income, like Spanish social security. They are not credited against tax. A treaty or totalisation agreement may decide which country's system applies to you.

What proof of foreign tax paid should I keep?

Keep payslips or a year-end tax statement showing the foreign tax withheld or paid, because the AEAT may ask for proof. Tax that a treaty does not allow the other country to charge, and that you could reclaim there, does not count for the credit.