Taxes in Spain for Expats 2026: Income Tax Scale and Other Taxes

Once you are a Spanish tax resident, you meet five main taxes: income tax (IRPF) on your worldwide income, wealth tax on large net assets, an information return for assets abroad, a yearly property tax and VAT at 21%. Income tax is the one that changes your budget, and its rate depends on which region you live in.

Each section below gives the rule, the source and a link to the detailed guide.

Income tax (IRPF)

You are a Spanish resident for tax purposes if you spend more than 183 days in a calendar year in Spain, or if your main economic interests are there (art. 9.1). From then on Spain taxes your income from anywhere in the world. Our tax residency guide covers the tests and the treaty tie-breakers.

IRPF has two baskets. General income (wages, self-employment, pensions, rent) goes on a progressive scale. Savings income (interest, dividends, and gains from selling assets, art. 46) goes on a lower, separate scale.

Each scale has two halves: a state half set in the law, and a regional half set by each region (arts. 74 and 76). The regional general scale is approved by each region, so the two halves add up to a different total in Madrid than in Valencia or Catalonia. The tables show the state half only.

State general scale (art. 63)

This is the state scale in force in 2026. It has not changed since 1 January 2021.

Taxable income up to	Rate on the slice
€12,450	9.5%
€20,200	12%
€35,200	15%
€60,000	18.5%
€300,000	22.5%
Above €300,000	24.5%

Slices are marginal: each rate applies only to the income inside its band. The law then reduces the result by the same scale applied to your personal and family minimum. Example of the state half only, for €50,000 of taxable general income before that minimum: the first €35,200 costs €4,362.75 (the figure in the law’s table) and the remaining €14,800 at 18.5% costs €2,738.00, a total of €7,100.75. The region’s half is added on top.

State savings scale (art. 66)

The savings scale has been in force since 1 January 2025 (Ley 7/2024). The regional half uses the same numbers (art. 76), so the combined rate is double.

Savings income up to	State rate	State + regional
€6,000	9.5%	19%
€50,000	10.5%	21%
€200,000	11.5%	23%
€300,000	13.5%	27%
Above €300,000	15%	30%

The combined column is the sum of the two halves, using the identical regional scale in art. 76. The Beckham regime for new arrivals uses these same rates on savings income, as explained in the Beckham Law guide.

If you also pay tax abroad on the same income, art. 80 gives a deduction for double taxation: the smaller of the foreign tax actually paid and the Spanish tax attributable to that income. American citizens file with the IRS as well, so see US taxes for Americans in Spain; British readers should read UK pensions and tax in Spain.

Wealth tax

Spain’s wealth tax (Ley 19/1991) charges net assets on 31 December. Where a region has not set its own allowance, the first €700,000 is exempt (art. 28), and your main home is exempt up to €300,000 (art. 4). Regions can change the allowance, the rates and add bonuses, so what you pay depends on where you live. Residents are taxed on worldwide net assets. Details, regional table and the separate tax on fortunes over €3 million are in the wealth tax guide.

Modelo 720: reporting assets abroad

Residents must file an information return for foreign assets in three categories: bank accounts, securities and insurance, and real estate. For accounts, the obligation applies when the combined balances at 31 December exceed €50,000, and the same test applies to the average balance (art. 42 bis). The return does not create a tax by itself, but it is mandatory. Rules, deadlines and penalties are in the modelo 720 guide.

Property tax and other local taxes

If you own property, you pay the IBI (Impuesto sobre Bienes Inmuebles), a yearly municipal tax on the ownership of real estate (arts. 60 and 61). The owner is the taxpayer (art. 63). The law sets the minimum and default rate for urban property at 0.4% and the maximum at 1.10%, and the city council chooses the rate within that range (art. 72). Councils can add points in some cases, for example for provincial capitals (art. 72.3), so the real rate depends on the municipality.

Renters are not the taxpayer: the law names the holder of the ownership or other listed rights (art. 63). If you rent, see our guide to renting in Spain for what the lease can pass on.

VAT

The general VAT rate is 21% (Ley 37/1992, art. 90). A 10% rate applies to food and some other goods and services, and a 4% rate to a further list of goods and services (art. 91).

Where to start

1. Decide whether you will be a tax resident, using the 183-day test.
2. Estimate IRPF with your region’s scale, not only the state table above.
3. Check wealth tax and modelo 720 if you hold large assets at home or abroad.
4. Before you move, confirm whether you qualify for a special regime such as the Beckham Law.
5. If you will live on a US pension, read Social Security and pensions in Spain.