Paying Income Tax in Spain (IRPF)
Move to Spain and the tax that shapes your year is IRPF, the personal income tax. If you are a resident, Spain taxes your worldwide income on a progressive scale, and every spring you settle the year through the annual return called the Renta. This page is the plain-language overview: who counts as a resident, how the general and savings rates work, what worldwide income really means, and the deadlines you cannot afford to miss.
None of it is as daunting as it first looks. Below we break the system into its moving parts and point you to the deeper guides and modules for each one.
Who counts as a tax resident in Spain
You become a Spanish tax resident for a whole calendar year if any one of three things is true: you spend more than 183 days in Spain during the year, your main economic interests are based here, or your spouse and dependent minor children habitually live in Spain (a presumption you can rebut with evidence). Spain has no split tax year, so you are either resident or not for the entire year, never half and half.
The label matters because it changes what gets taxed. Residents pay IRPF on their worldwide income. Non-residents pay a separate tax, IRNR, only on income that arises in Spain, such as rent from a Spanish property. If you live abroad and own a holiday home here, our Modelo 210 guide covers the filing you actually need.
The two tax bases: general and savings
IRPF sorts your income into two pots that are taxed in different ways. The general base covers employment, pensions, rental income and business profit. It runs on a progressive scale where the state sets one half of the rates and your autonomous community sets the other, so your top marginal rate depends on where you live. It runs from roughly 43.5% at the top in Madrid to over 50% in higher-tax regions such as Catalonia and Valencia.
The savings base covers interest, dividends and capital gains. It uses a single national scale that is the same in every region, so this part of your tax does not change when you move from one community to another.
Savings base rates for 2026
- 19% on the first 6,000 euros
- 21% from 6,001 to 50,000 euros
- 23% from 50,001 to 200,000 euros
- 27% from 200,001 to 300,000 euros
- 28% above 300,000 euros
The general base has its own bands with a tax-free personal allowance at the bottom, plus deductions that vary by region and personal situation. That is why two people on the same salary can end up paying noticeably different amounts.
Worldwide income and double taxation
Worldwide income is the part that catches new residents by surprise. Once Spain is your tax home, your foreign pension, overseas rent and investment income abroad all belong on your Spanish return, not just what you earn locally. That does not mean paying twice. Spain has double taxation treaties with most countries, and the treaty decides which country taxes each type of income and lets you offset tax already paid elsewhere. The exact outcome depends on the treaty and the kind of income, so it is worth checking your own case.
Frequently asked questions
The annual Renta and Modelo 100
Residents report the year through the Renta, filed on Modelo 100. The 2025 income campaign runs from 8 April to 30 June 2026, with direct debit payments due by 25 June. The Agencia Tributaria prepares a draft return, the borrador, from the data it already holds. Your job is to check it, add anything missing and confirm. Miss the window and surcharges follow, so keep the key dates in view with our Spanish tax deadlines guide.
The Beckham Law: a flat-rate option
New arrivals moving to Spain for work can apply for the Beckham Law, an optional regime that taxes your Spanish employment income at a flat 24% up to 600,000 euros and leaves most foreign income outside the Spanish net, for up to six years. It can mean a large saving for higher earners, but it is not automatic and not the right choice for everyone. Our Beckham Law guide walks through who qualifies and how to apply in time.
Other filings that sit alongside your income tax
A handful of declarations often travel with IRPF. If your assets outside Spain top 50,000 euros, you file the informational Modelo 720 between 1 January and 31 March. It reports what you hold abroad rather than charging tax on it. Income tax also rarely lives alone, so it helps to see how it connects to social security, healthcare, buying property and inheritance and gift tax once you settle in.
One honest note: this page is general information, not personal tax advice. Rules shift by region and by situation, so check your own circumstances or speak to a professional before you file.
Get your Spanish tax life set up right
From your NIE to your first Renta, our modules walk you through each stage in plain language, so nothing catches you out later.
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