Which Spanish regions have lower or higher taxes for residents?

Key rules

• Income tax region: You are taxed by the region where you spent the most days in the tax year, and its rules apply for the whole year.
• Typical incomes: On 30,000 to 50,000 euros gross, regions differ by a few hundred euros up to around 1,000 euros a year.
• High earners: At 200,000 euros or more, the yearly gap can reach roughly 6,000 to 10,000 euros.
• Madrid: The top income tax rate in Madrid is about 45% as of 2025, the lowest top rate.
• Wealth tax: Wealth tax follows the region where you are resident on 31 December.

Rates, deductions and regional rules change often, so confirm current figures for your region with its tax office or an asesor fiscal.

The short answer

Where you live in Spain changes your tax bill, but by how much depends on your income. On a typical salary the gap between regions is moderate. For high earners and wealthy households it can be large. Read the regional differences with that in mind.

Which region taxes you

For income tax, you are taxed by the region where you spent the most days in the tax year. That region's rules apply for the whole year. If that cannot be worked out, the region where most of your income comes from applies. After that comes the region of your last tax return.

Wealth tax follows your own region of residence on 31 December. Your spouse's residence is worked out separately. Only young children who depend on you normally follow the parent they live with. Keeping the family home in your old region can still be used as evidence against a move.

Income tax: typical salaries

On a gross salary of 30,000 to 50,000 euros, the gap between the cheapest and dearest region is usually a few hundred euros up to around 1,000 euros a year. That is roughly 1% to 3% of income.

Regional deductions can matter more than the rates at this level. Common ones cover:

• birth or adoption of a child
• large families
• rent for young people
• disability
• donations
• school expenses
• living in a rural area

Amounts and conditions change every year, so check your region's current list. If you have a family on a normal income, deductions can offset or exceed rate differences.

Income tax: high earners

The gap grows quickly with income. At 100,000 euros it can be several thousand euros a year. At 200,000 euros or more it can reach roughly 6,000 to 10,000 euros a year. For high earners the rate scale matters far more than deductions, and some deductions have income limits.

Regions with low or near-baseline top rates include Andalucía, Galicia, Castilla y León, La Rioja, Cantabria, Murcia and Baleares, mostly in the mid-40s to high-40s percent as of 2025. Madrid sits at the bottom of this range. The highest top rates are in Asturias, Cataluña, Comunidad Valenciana, Aragón, Extremadura and Castilla-La Mancha, roughly 50% to 54%.

The Basque Country and Navarra run their own tax systems, so these comparisons do not apply to them.

Wealth, property and inheritance

Regions set their own rules for wealth tax, property transfer taxes and inheritance and gift tax, and the differences can be larger than for income tax. The comparison table below puts the regions side by side. Check the current rules for any region you are considering, because they change often.

How to use this

• If you earn a typical salary, pick your region for work, cost of living and lifestyle. Tax will rarely decide it.
• If you earn a lot or hold significant wealth, tax differences are worth modelling for your own case.
• If you split your year between two regions, count your days carefully. The region with the most days wins for the whole year.

The questions list below is useful to take to an asesor fiscal before you decide.

Regional tax differences in one table

Regional tax differences: what to compare and where to read the figures

Income tax, wealth tax, inheritance and gift tax, and property transfer tax all differ by region. Rates and allowances change often, so read the current figure for your region from the regional tax office before you decide where to live or buy.

This table shows the four taxes to compare and where to find each region's current figure.

How to build your own comparison

1. Pick the two or three regions you are considering.
2. Open each region's tax agency page and note the figure for each row of the table above.
3. Compare the same case in each region: your income, the value of your assets and the price of the property you plan to buy.
4. Check that you are reading the latest edition. Guide names and formats change from year to year.

A table with exact rates for every region is not given here. A figure copied from an old guide can be wrong by the time you act on it.

Why you should not choose a region for tax alone

• Tax authorities check moves to low-tax regions: If you move within Spain to a low-tax region such as Madrid, the tax office may challenge the move, especially if you move from Catalonia. Common triggers are a large income or capital gain right after the move, keeping your family home, spouse or children in the old region, more days spent there, keeping your main work base there, and a late change of address. Courts have often backed the tax office when family and economic ties stayed in the old region. For income tax you are taxed by the region where you spent the most days in the tax year, and that region's rules apply for the whole year. Keep proof of your days, such as travel tickets, utility bills and employment records, and move your family and work base too.

• Living costs can cancel the tax saving: On a salary below about €60,000, income tax differences between regions are usually a few hundred to low thousands of euros a year. Rent differences between Madrid, Barcelona, Málaga or the Balearic Islands and cheaper regions such as Extremadura, Castilla y León or Galicia are often bigger. Build a one-year budget for each region with rent, taxes, property tax (IBI), purchase tax and travel, then compare the totals. Regional gaps matter most for high earners, people with wealth above the exempt threshold, and anyone expecting to leave or receive an inheritance.

• Regional rules change often: Several regions, including Madrid, Andalusia, Valencia, Asturias and Aragón, have changed their income tax scales, inheritance bonuses or transfer tax reductions in recent years, and Catalonia has reformed its inheritance tax. A saving that looks large today can shrink or disappear. Check the current rates on your region's tax agency website before you decide, and do not base a long-term move on one year's rates.

Questions for a tax adviser (asesor fiscal) before choosing a region

Copy the message below, fill in the blanks and send it to a Spanish-qualified asesor fiscal. The more detail you give, the more tailored the answer. Ask for the answer in writing so you can compare regions.

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Subject: Tax questions before I choose where to live in Spain

Hello,

I am planning to move to Spain and want advice before I choose a region. Here is my situation.

About me

• Country where I am tax resident now: ______
• Planned move date: ______
• Expected days in Spain in the first year: ______
• Visa or permit type: ______
• Where my family and main economic interests will be: ______
• Spouse or partner, children and other dependants: ______
• Whether I want to use the Beckham regime (the special regime for inbound workers): yes / no / not sure

My income (type, yearly amount and country of source)

• Salary: ______
• Self-employment: ______
• Rent: ______
• Dividends and interest: ______
• Pensions: ______
• Capital gains, including crypto: ______

My assets (with approximate values)

• In Spain: ______
• Abroad: ______
• Property I own or plan to buy, and where: ______

My heirs

• Who they are, where they live and their relationship to me: ______
• Whether I have a will, and in which country: ______

My questions

Residency

1. Will I be tax resident in Spain, and from when? How do the days test and my family and economic ties apply to me?
2. Which region's rules apply to me, and when is that fixed? Is it the region where I spend most days in the year for income tax, my residence on 31 December for wealth tax, and the deceased's residence over the last five years for inheritance tax?
3. How does a double tax treaty between Spain and my current country apply to my case?

Regional rates

4. What would my income tax be under the rates of each region I am considering: ______, ______, ______?
5. If I buy property, what will the transfer tax (ITP) and stamp duty (AJD) cost in each of those regions?

Wealth

6. Will wealth tax apply to me, and how much would it be in each region?
7. My net wealth is about ______ euros. The solidarity tax on large fortunes applies to net wealth above 3 million euros. Does it apply to me?
8. Which of my foreign assets must I report, and by when (the Modelo 720 foreign asset declaration)?

Inheritance and gifts

9. What inheritance or gift tax would my heirs pay in each region?
10. Do the rules differ if my heirs or I live outside Spain, or if my heirs are not Spanish?

Deadlines, costs and risks

11. What are my filing deadlines in the first year? Income tax returns are normally filed from April to June.
12. What would you charge to handle my filings, and what is the scope of your service?
13. What are the main risks or mistakes to avoid in my case?

Thank you. I can send documents if you need them.

Kind regards,

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Before you send it: if you are still choosing between regions, list two or three of them in question 4. The adviser can then compare them side by side.

Frequently asked questions

How much money would I actually save by moving to a lower-tax region?

It depends mostly on your income, and the saving is small at modest salaries. The sections above give the figures for 30,000 to 50,000 euros and for 200,000 euros or more.

Do regional deductions change the picture for a family on a normal income?

They can: Regions offer deductions for births, large families, young renters, disability and rural living. These are usually small next to rate differences, but for lower and mid incomes and for families they can offset or exceed the gap.

Which region's rates apply if I split my year between two regions?

The region where you spent the most days in the calendar year applies, and its rules cover the whole year. Wealth tax is different: it follows the region where you live on 31 December.

Is Madrid always the cheapest for income tax?

Mostly, but not in every case. Madrid has the lowest top income tax rate, about 45%. Several other regions, such as Andalucía, Galicia, Castilla y León, La Rioja, Cantabria, Murcia and Baleares, sit mostly in the 45% to 48% range. Asturias, Cataluña, Valencia and Aragón are among the highest.