Spain Tax Guide for Expats — 2026
IRPF brackets, Beckham Law, autónomo contributions, IVA, Modelo 720, and every deadline you need to know. Written for English-speaking expats in Valencia.
where_to_voteAre You a Spanish Tax Resident?
183-Day Rule
Spend more than 183 days in Spain in a calendar year → automatic tax resident. Absence days are counted differently if Spain is your 'centre of vital interests'.
Centre of Economic Interest
Even under 183 days, you may be deemed resident if your main business activities or family (spouse, children) are based in Spain.
Habitual Residence
Spain can also claim tax residency if your 'habitual abode' — the place you return to after absences — is in Spain.
When Residency Starts
Tax residency is assessed per calendar year. Arriving on July 1 means you could be resident for the full year if you exceed 183 days by Dec 31.
Once resident, you declare your worldwide income — not just Spanish income. This catches many expats off guard. A Double Taxation Agreement (DTA) prevents paying twice, but you must still file in Spain.
bar_chartIRPF Tax Brackets 2026
Combined national + regional (Valencia) rates. These are marginal rates — only income in that band is taxed at that rate.
Beckham Law comparison: Under the special expat regime, you pay a flat 24% on all income up to €600,000 — regardless of how income is earned. For anyone earning over €35k, this is almost always better than standard IRPF. See full Beckham Law guide →
percentThe Beckham Law — Special Expat Tax Regime
Officially: Régimen Especial de Trabajadores Desplazados (Ley 26/2014). Available to qualifying expats for up to 6 years.
Who qualifies
New Spanish tax residents who haven't been resident in Spain in the previous 5 years. Digital Nomad Visa (DNV) holders are explicitly included by Ley 28/2022.
The rate
Flat 24% on income up to €600,000. Income above €600k is taxed at 47%. Capital gains and savings income are taxed separately at their normal rates (19–28%).
How to elect
File Modelo 149 within 6 months of your first Spanish social security or tax registration. This window is strict — you cannot apply retroactively after 6 months.
Example: A UK remote worker earning £80,000 (≈€95,000) under standard IRPF would pay approximately €32,000 in Spanish income tax. Under Beckham, they pay €22,800 — saving over €9,000/year, every year, for 6 years.
workRegistering as Autónomo (Self-Employed)
If you work freelance for Spanish clients, run a Spanish business, or bill Spanish companies, you almost certainly need to register as autónomo with the RETA (Régimen Especial de Trabajadores Autónomos).
savingsTarifa Plana (New Autónomos)
New autónomos pay a reduced rate of €80/month flat for the first 12 months (extendable in some regions to 24 months). After that, contributions switch to the income-based system below.
calendar_todayWhen to Register
Register with Agencia Tributaria (Modelo 036/037) and TGSS (autónomo registration) before you start invoicing. Late registration can trigger back-payments and penalties.
2026 Social Security Contributions by Income
| Net Monthly Income | Contribution Base | ~Monthly Payment |
|---|---|---|
| < €670/mo | €225.27 | ~€80* |
| €670 – €900/mo | €357.86 | ~€128 |
| €900 – €1,166/mo | €461.67 | ~€165 |
| €1,166 – €1,760/mo | €635.66 | ~€228 |
| €1,760 – €2,590/mo | €875.55 | ~€314 |
| €2,590 – €3,620/mo | €1,086.99 | ~€390 |
| > €3,620/mo | €1,629.30 | ~€585 |
* Tarifa Plana rate applies for first 12 months regardless of income. Rates approximate — actual payment depends on chosen contribution base.
IVA (VAT) for Autónomos
Most autónomos must charge and collect IVA (Spanish VAT). Standard rate: 21%. Reduced rate: 10% (hospitality, some services). Super-reduced: 4% (basic foods, medicines). IVA is declared quarterly via Modelo 303 and summarised annually via Modelo 390. Services sold to businesses outside Spain (B2B EU or international) may be zero-rated — check with your gestor.
warningModelo 720 — Foreign Assets Declaration
This is one of the most important — and most overlooked — obligations for expats with overseas wealth. Failure to file has historically triggered some of the largest penalties in the Spanish tax system.
Bank Accounts
All overseas bank and building society accounts where the combined balance exceeds €50,000 at December 31 or at any point during the year.
Investments & Securities
Overseas stocks, bonds, funds, SIPPs, ISAs, pension pots, and other financial instruments above the €50,000 threshold per category.
Real Estate
Property owned outside Spain (including UK, US, or Australian property) with a total value exceeding €50,000 must be declared.
Deadline: March 31 each year
File Modelo 720 via the AEAT website or through your gestor by March 31. You must file in the first year you become a tax resident and in any subsequent year where any asset category changes by more than €20,000.
descriptionKey Tax Forms for Expats
Census & Tax Registration
Register with AEAT and obtain your NIF/NIE tax identifier. Required before all other tax filings.
Annual IRPF Return
Annual income tax return. Filed once per year. Most expats use a gestor for this.
Beckham Law Opt-In
Must be filed to elect into the special expatriate regime. Miss this window = no Beckham.
Non-Resident Tax (IRNR)
If you own Spanish property as a non-resident, file for deemed imputed income each year.
Quarterly IVA (VAT) Return
Autónomos and companies file this every quarter. Declares IVA charged minus IVA paid.
Annual Third-Party Operations
Declare transactions >€3,005.06 with any single party. Required for many autónomos.
Annual IVA Summary
Annual summary of all quarterly IVA (Modelo 303) filings. Mandatory for VAT-registered businesses.
Foreign Assets Declaration
Overseas assets >€50,000 per category (bank accounts, investments, real estate). Critical — high penalties for omission.
eventSpanish Tax Calendar 2026
Jan
- arrow_rightModelo 303 (Q4 IVA)
- arrow_rightModelo 390 (Annual IVA Summary)
- arrow_rightModelo 347 (Annual Operations)
Mar
- arrow_rightModelo 720 (Foreign Assets) — deadline March 31
- arrow_rightModelo 347 due
Apr
- arrow_rightModelo 303 (Q1 IVA)
- arrow_rightIRPF return window opens (Apr 1)
Jun
- arrow_rightModelo 100 (Annual IRPF) — deadline June 30
- arrow_rightPayment or direct debit of tax owed
Jul
- arrow_rightModelo 303 (Q2 IVA)
Oct
- arrow_rightModelo 303 (Q3 IVA)
flagCountry-Specific Considerations
🇺🇸 US Citizens
- check_circleThe US taxes its citizens on worldwide income regardless of residence. You must file a US return every year even while living in Spain.
- check_circleFBAR (FinCEN 114) required if overseas financial accounts exceed $10,000 at any point during the year. Deadline: April 15 (automatic extension to October).
- check_circleFATCA Form 8938 required if foreign assets exceed $200,000 (single filer abroad). Filed with your 1040.
- check_circleThe US-Spain Double Taxation Treaty prevents double taxation — you use Foreign Tax Credits (Form 1116) or the Foreign Earned Income Exclusion (FEIE) to offset Spanish taxes against your US liability.
- check_circleMany US expats in Valencia use a US-Spain specialist CPA (expect $1,500–3,500/yr for full compliance).
🇬🇧 UK Citizens
- check_circleOnce you break UK tax residency (using the Statutory Residence Test), the UK generally stops taxing your foreign income. File a Self Assessment return for the year of departure.
- check_circleUK pension income (State Pension, occupational pensions) may still be taxable in the UK even after you leave — check the UK-Spain DTA.
- check_circleUK property rental income: Spain has the right to tax this under the DTA. You must declare it on your Spanish IRPF return, with a credit for any UK tax paid.
- check_circleISAs lose their UK tax-free status once you become a Spanish tax resident. Interest and gains become taxable in Spain.
- check_circleNotify HMRC with a P85 form when you leave. If self-employed, notify them via the online self-employment services.
🇦🇺🇨🇦 Australian & Canadian Citizens
- check_circleAustralia and Canada both have DTAs with Spain. Once you break residency, only local-source income (super drawdowns, RRSP/RRIF, rental income) is taxed at source.
- check_circleAustralian superannuation: remains in Australia, taxed on withdrawal. Spain does not tax the accumulation phase. Drawdowns may be taxable in Spain depending on the structure.
- check_circleCanadian RRSP/RRIF: withdrawals as a non-resident subject to 25% withholding (reduced to 15% under the DTA). Declare the net amount in Spain as foreign income.
- check_circleBeckham Law is available to Australians and Canadians with a Digital Nomad Visa — one of the best tax optimisation opportunities available.