Will you pay more or less tax in Spain than elsewhere?

Terms used

• Patrimonio — Patrimonio is the yearly wealth tax on what you own above an allowance.
• Beckham — The Beckham law is Spain's special tax regime for some newcomers who move to Spain for work.
• Solidarity tax — The solidarity tax is an extra yearly tax on very large fortunes.
• IRPF — The IRPF is Spain's personal income tax, charged on salary, savings and other income of tax residents.
• Impuesto sobre el Patrimonio — The Impuesto sobre el Patrimonio is Spain's annual net wealth tax, run by the regions and often reduced to zero.
• Beckham law — The Beckham law is a special regime that taxes eligible new workers in Spain like non-residents for six years.

Key rules

• Tax residence: Spending more than 183 days in Spain in a calendar year generally makes you a Spanish tax resident, taxed on worldwide income.
• Overall burden: Spain is upper-middle among comparable countries, and it weighs more on higher earners.
• Region: Your region sets part of your income tax and decides whether wealth tax bites, so compare by region.
• Beckham law: You must apply within six months of registering with Social Security, and you must not have been Spanish tax resident in the previous five years.

The short answer

Spain taxes higher earners at a moderate-to-high level. Compared with other large European countries it sits in the upper-middle range. It is not the cheapest place to earn a high salary, and it is not the most expensive. If you earn a modest salary, the gap with other countries is small. The gap grows as your income and wealth grow.

How Spain compares on pay

For a single average earner, tax and social contributions take about 39% of the total cost of employing you. That is a little above the average of about 35% for rich countries. It is lower than in Germany (about 47%), France (about 47%) and Italy (about 46%). It is higher than in the UK (about 31%) and the US (about 30%). Employers pay relatively high social contributions in Spain, which pushes this figure up.

Income tax rates for higher earners

Income tax (IRPF) has a state part and a regional part that add together. For 2025 the combined rate on salary and similar income runs from about 19% to 47% at the default regional rates. The top rate applies above €300,000. Regions set their own scales, so the top combined rate runs from about 43% to 54% depending on where you live.

Savings and investment income is taxed separately, at 19% to 30% combined. The top 30% applies above €300,000.

For comparison, top combined rates are roughly 45% in Germany, 55% in France, 43% in Italy, 45% in the UK, and about 50% in Portugal and the Netherlands.

Where you live in Spain matters

Rates and wealth-tax rules vary by region. Two people with the same income can pay quite different amounts in two regions. Check the rules for the region you plan to live in before you compare.

Wealth tax

Spain has a net wealth tax (Impuesto sobre el Patrimonio). The state scale runs from 0.2% to 3.5%, with a €700,000 exemption and a main-home exemption up to €300,000. Several regions, including Madrid, Andalusia, Galicia and Valencia, cut it by 100% or nearly so, so you pay little or nothing there. Catalonia, Asturias and Aragón apply it fully.

Above €3 million of net wealth, a separate solidarity tax on large fortunes applies, at 1.7% to 3.5%. Any regional wealth tax you paid can be credited against it.

Why residence decides everything

If you spend more than 183 days in Spain in a calendar year, you are generally a Spanish tax resident and you are taxed on your worldwide income. Your residence can also be in Spain if your main base of economic interests is here. It is presumed to be here if your spouse and dependent children live here, unless you can show otherwise. Non-residents pay tax only on income earned in Spain. A tax treaty between Spain and your home country can change the result if both claim you.

A lower-tax route for some newcomers

The Beckham law is a special regime for some new arrivals. It lets you be taxed like a non-resident. Spanish employment income is taxed at 24% up to €600,000 and 47% above that, and most foreign income is left out. It lasts for the year you arrive and the next five years. You qualify only if you move for work and were not Spanish tax resident in the previous five years. Eligible people include employees, directors, entrepreneurs, startup founders and remote workers. You must apply within six months of registering with Social Security. A proposal to abolish or reduce this regime has been discussed, so check the current rules before you plan around it.

The timeline, documents and questions below cover how to apply and what to prepare. For exact calculations, go to the tax pages of this guide.

Timeline and deadlines

• Check you were not Spanish tax resident in the previous five years: before you move

• Move to Spain for an employment contract, a director appointment, or as an entrepreneur, startup founder or remote worker: in your year of arrival

• Register with Social Security: when you start work in Spain

• Use the regime's special tax treatment: for the year of arrival and the next five years, six in total

Documents you need

• Your employment contract, director appointment, or proof that you are an entrepreneur, startup founder or remote worker under the Startups Law. You need it to show you moved to Spain for work if you want the incoming-worker regime (Beckham law).

• Proof of your Social Security registration in Spain. Its date starts the six-month window to apply for the incoming-worker regime.

• Proof that you are resident in another country, such as a residence certificate from that country's tax office. It helps show your stays in Spain were temporary absences from your real home abroad, and it matters if a tax treaty decides which country taxes you.

Frequently asked questions

Do I pay wealth tax if I live in Madrid?

Usually no, because Madrid gives a bonus of 100% or nearly so on the wealth tax, so little or nothing is paid in practice. Andalusia, Galicia and Valencia do the same, while Catalonia, Asturias and Aragón apply it fully.

Is there a separate tax for very large fortunes?

Yes, a solidarity tax on large fortunes applies to net wealth above €3 million, at rates of 1.7% to 3.5%. A regional wealth tax you have paid can be credited against it, so living in a region with a full bonus does not remove it. It is now permanent, and the Constitutional Court has so far upheld it against regional challenges.

How long does the Beckham law regime last, and when must I apply?

The Beckham law regime lasts for the year you arrive plus the next five years, six in total. You must apply within six months of registering with Social Security.

What tax rate applies to my savings and investment income in Spain?

Savings income is taxed separately from your salary, at combined rates of 19% to 30%. The top rate of 30% applies above €300,000. Salary and other general income use a separate scale, which runs from about 19% to 47% at the default rates.