IRPF (Impuesto sobre la Renta de las Personas Fisicas)
IRPF is Spain's personal income tax. It applies to every individual who is a Spanish tax resident, covering employment income, self employment income, rental income, capital gains, savings income, and most other forms of personal earnings. The acronym stands for Impuesto sobre la Renta de las Personas Físicas, which translates to Personal Income Tax for Individuals.
How the progressive brackets work
IRPF uses a progressive structure split between the state (estatal) and the regional (autonómica) components. The combined marginal rates for 2026 range from roughly 19% on the first 12,450 euro to 47% on income above 300,000 euro. The exact percentages differ by autonomous community because each region sets its own regional component. Madrid has the lowest regional rates, while Catalonia and Valencia sit at the higher end.
Your taxable base is split into two parts. The general base (base imponible general) covers employment income, self employment income, and rental income. The savings base (base imponible del ahorro) covers interest, dividends, and capital gains. The savings base has its own bracket structure, currently running from 19% on the first 6,000 euro to 28% on savings income above 300,000 euro.
IRPF vs IRNR
Non residents who earn income in Spain pay a different tax called IRNR (Impuesto sobre la Renta de No Residentes). The key differences are significant. IRPF taxes your worldwide income and uses progressive rates. IRNR only taxes Spanish sourced income and generally applies a flat rate of 24% for non EU residents or 19% for EU and EEA residents. If you are under the Beckham Law, you file Modelo 151 instead of Modelo 100 and pay a flat 24% on Spanish employment income.
When you must file
The annual income tax return, called the Declaración de la Renta, is filed via Modelo 100. The filing period runs from April to June each year. You are required to file if your gross employment income exceeds 22,000 euro from a single payer, or 15,000 euro from two or more payers (when the second and subsequent payers combined exceed 1,500 euro). Self employed autónomos must always file regardless of income level.
Filing is done online through the Agencia Tributaria website using your Certificado Digital or Cláve. The Renta Web platform pre populates much of the return based on data the tax authority already has from employers, banks, and other sources. Always review the draft carefully, as it frequently omits foreign income and deductions.
Common deductions
IRPF allows several deductions that reduce your tax bill. Social security contributions are fully deductible. If you are an autónomo, your business expenses (office rent, supplies, professional services, travel) reduce your taxable base. Contributions to Spanish pension plans are deductible up to annual limits. Some regions offer additional deductions for rent payments, childcare, and energy efficiency improvements. Mortgage interest on your primary residence is deductible if the mortgage was taken out before 2013.
What catches people off guard
The most common surprise for new residents is the worldwide income obligation. Once you are a Spanish tax resident, Spain taxes everything: your Dutch rental income, your UK pension, your US dividends. Double taxation treaties prevent you from paying twice, but you must still declare everything and claim the relief.
The second surprise is the regional variation. Two people with identical incomes can pay thousands of euros apart depending on whether they live in Madrid or Catalonia. Choosing your region based solely on tax rates is impractical for most people, but knowing the difference helps you plan.
