Taxes in Spain 2026: IRPF, Beckham Law, VAT, Corporate Tax and Wealth Tax

The Spanish tax system at a glance

Taxes in Spain are administered by the State Tax Administration Agency (AEAT). A large part of income tax and the wealth, inheritance and gift taxes go to the 15 autonomous communities, which may set their own rates and allowances. The Basque Country and Navarre have a fully separate tax system (régimen foral).

Spain has concluded more than 90 double tax treaties, including with Germany (2011), Austria and Switzerland. The official overview of bilateral treaties shows the current status.

Tax residence in Spain

Under Article 9 of the Income Tax Act, a person is fully taxable in Spain if they meet one of the following criteria:

• ✛Presence of more than 183 days in the calendar year; temporary absences count unless residence in another state is proven
• ✛Economic centre in Spain, i.e. the main base of business activity or the main sources of income
• ✛Family presumption: if the spouse and minor children live in Spain, residence is presumed; the presumption can be rebutted

The AEAT checks these criteria closely and also uses indirect evidence such as electricity and water consumption, card payments or mobile phone data. The AEAT's income tax manual (IRPF 2025) explains the rules in detail.

Residents are taxed on worldwide income. Non-residents pay only on Spanish income: 19% for EU and EEA citizens, 24% for others, including Swiss nationals. Non-residents with an unoccupied property in Spain also pay an annual imputed income tax on 1.1% or 2% of the cadastral value (Modelo 210).

Income tax (IRPF) 2026

IRPF distinguishes two tax bases: the general base (employment, self-employment, rental) and the savings base (investment income and capital gains).

General base: state scale

Each autonomous community sets its own regional share. The top rate therefore ranges from 45% in Madrid to 54% in Valencia. The personal allowance (mínimo personal) is EUR 5,550, with supplements for children and older people. Social security contributions, pension plan contributions up to EUR 1,500 and business expenses of the self-employed are deductible.

Savings base since 2025

Cryptocurrencies are taxed in the savings base. From 2027 the AEAT will receive crypto data automatically under CARF and DAC8. The self-employed (autónomos) also pay income-related social security contributions of about EUR 200 to 600 per month; a flat rate of EUR 80 applies in the first year.

Beckham law: the regime for new residents

The special regime for inbound workers (régimen especial de impatriados, Art. 93 LIRPF) is named after footballer David Beckham. It treats new residents for tax purposes like non-residents, even though they live in Spain.

• ✛Tax rate: 24% on Spanish employment income up to EUR 600,000, 47% above
• ✛Foreign income: dividends, interest and gains from abroad are largely tax-free; foreign employment income is taxed
• ✛Wealth tax: only on assets located in Spain
• ✛Duration: year of arrival plus five further years
• ✛Requirement: no Spanish residence in the previous five years; move due to an employment contract, appointment as a director, remote work with a digital nomad visa, an innovative entrepreneurial activity or as a highly qualified professional for start-ups
• ✛Application: within six months of registering with social security (Modelo 149)

Since the 2023 Start-up Act, the regime also applies to spouses and children who move with them. Entrepreneurs should be careful, however: owning more than 25% of a company is only permitted under conditions. Spain abolished the golden visa for property purchases on 3 April 2025. Comparable programmes in other countries are covered in our articles on Portugal taxes, taxes in Malta and the Turkey tax exemption.

VAT (IVA)

IVA follows the EU VAT Directive. In the Canary Islands, IGIC applies instead with a standard rate of 7%, and IPSI in Ceuta and Melilla.

• ✛21% standard rate: most goods and services
• ✛10% reduced rate: hotels and restaurants, passenger transport, certain foods, renovation of homes
• ✛4% super-reduced rate: staple foods such as bread, milk, eggs, fruit and vegetables, medicines, books and newspapers, social housing

Registration and reporting

Anyone making taxable supplies in Spain needs a NIF and registers using Modelo 036. Spain has no small business threshold. EU businesses can register directly; businesses from third countries usually need a tax representative. The One-Stop Shop (OSS) applies to distance sales to consumers. The VAT manual (IVA 2026) and the legal text of Ley 37/1992 contain all details.

VAT returns (Modelo 303) are filed quarterly. Only large companies with prior-year turnover above EUR 6,010,121 and businesses in the monthly refund scheme (REDEME) file monthly. From 2026, mandatory electronic invoicing (Verifactu) is also being introduced in stages.

Corporate tax (Impuesto sobre Sociedades)

Companies with their seat or effective management in Spain pay corporate tax on worldwide income. With the reform at the end of 2024 (Ley 7/2024), rates for small companies are falling in stages.

The tax base is derived from accounting profit. Financing costs are deductible up to 30% of EBITDA (minimum EUR 1m). Losses can be carried forward indefinitely, fully up to EUR 1m per year and above that up to 70% of profit. Spain implemented the 15% global minimum tax for groups with revenue of EUR 750m or more through Ley 7/2024, including a domestic top-up tax.

Incentives

• ✛R&D deduction of 25%, up to 42% for incremental spending
• ✛deduction for technological innovation
• ✛patent box: 60% of income from patents and software is exempt, about 10% effective
• ✛Canary Islands: special zone ZEC with 4% corporate tax with local substance
• ✛Basque Country and Navarre: own rates of 20 to 24%

The Invest in Spain business guide summarises incentives and the investment climate.

Holding and participation exemption

Dividends and capital gains from holdings of at least 5% held for at least one year are 95% exempt, giving an effective rate of 1.25%. For foreign subsidiaries, their nominal tax must be at least 10%. CFC rules (transparencia fiscal internacional) capture passive income of foreign companies taxed at less than 75% of the Spanish tax. How such rules work is shown in our article on permanent representatives and CFC taxation.

Wealth tax and solidarity tax

Wealth tax (Impuesto sobre el Patrimonio) is levied annually on net wealth on 31 December. Residents are taxed on worldwide assets, non-residents only on Spanish assets.

• ✛Allowance: EUR 700,000 at state level, plus up to EUR 300,000 for the main home; some regions such as Catalonia and Valencia have lower allowances
• ✛Rates: 0.2 to 3.5% at state level, regionally different
• ✛Exemptions: shares in family businesses under conditions
• ✛Regions: Madrid and Andalusia grant a 100% relief, so there is effectively no wealth tax

Solidarity tax on large fortunes

Since 2022, the state solidarity tax (Impuesto Temporal de Solidaridad de las Grandes Fortunas) has applied to net wealth above EUR 3m. Rates are 1.7% up to EUR 5.3m, 2.1% up to EUR 10.7m and 3.5% above. Regional wealth tax is credited. Result: very wealthy individuals pay wealth tax again even in Madrid and Andalusia. The tax has been extended indefinitely and upheld by the Constitutional Court.

Modelo 720: reporting foreign assets

Residents must report foreign accounts, securities and property if a category exceeds EUR 50,000; cryptocurrencies held with foreign providers are reported in Modelo 721. After the CJEU ruling of 27 January 2022 (C-788/19), the disproportionate penalties were abolished, but the reporting obligation remains. How authorities learn about foreign accounts is shown in our article on foreign accounts and the tax office 2026.

Inheritance and gift tax

Inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones) is levied on the recipient. It is regulated at state level, but the regions may adjust allowances, rates and reliefs. The state scale ranges from 7.65% to 34%, with multipliers for existing wealth and degree of kinship.

Many regions provide substantial relief for close relatives: Madrid, Andalusia, Valencia and others grant a 99% relief or high allowances for groups I and II. Catalonia and Asturias are much stricter. Since a 2014 CJEU ruling, non-residents may also use regional benefits. The legal framework for inheritance and gift tax is available in the BOE code.

Regional differences

Figures rounded, as of October 2026. Regions change their rules frequently, often annually with the budget. A move within Spain is only fully recognised for tax purposes after five years if it is mainly tax-motivated.

Deadlines and penalties 2026

1. 1Modelo 303 (VAT): quarterly by 20 April, 20 July and 20 October, fourth quarter by 30 January; monthly by the 30th of the following month
2. 2Modelo 390 (annual VAT return): by 30 January 2027 for 2026
3. 3Income tax (Modelo 100): from early April to 30 June 2027 for 2026
4. 4Wealth tax (Modelo 714) and solidarity tax (Modelo 718): in the same period, required if tax is due or assets exceed EUR 2m
5. 5Corporate tax (Modelo 200): within 25 days after six months from financial year-end, i.e. by 25 July 2027
6. 6Modelo 720 and 721: by 31 March 2027
7. 7Prepayments for the self-employed (Modelo 130): quarterly 20% of profit

Since 2021, voluntary late filing incurs tiered surcharges: 1% plus 1% for each full month of delay up to 12 months, then 15% plus late payment interest. If discovered by the authority, penalties of 50 to 150% of the tax may apply. The retention period is generally four years, up to ten years for losses and tax credits. SWICOR handles ongoing accounting and filings under accounting and tax.

International aspects

Double tax treaties

Treaties determine which state may tax which income. For German pensioners in Spain, for example, Germany may continue to tax the statutory pension, and Spain credits the German tax. Civil servant pensions are taxed only in Germany. The Deloitte Spain Highlights 2025 summarise the main international rules.

Spanish exit tax

Anyone leaving Spain who was resident for at least ten of the last 15 years pays exit tax on shareholdings (Art. 95 bis LIRPF) if their value exceeds EUR 4m, or EUR 1m for holdings of more than 25%. On a move to the EU or EEA, the tax can be deferred on application. This mirrors German exit taxation.

Transfer pricing

Related-party transactions above EUR 250,000 per year and counterparty must be reported in Modelo 232. Groups with revenue of EUR 45m or more prepare full documentation with a master file and local file, smaller ones simplified documentation. Groups with revenue of EUR 750m or more also file a country-by-country report.

Legal tax planning in Spain

• ✛Beckham regime: check it when moving and apply within six months
• ✛Choice of region with a view to income, wealth and inheritance tax
• ✛Corporation instead of self-employment from medium profits to use the reduced rates for small companies
• ✛Holding structure with 95% participation exemption for entrepreneurs with several companies
• ✛Timing of arrival: moving in the second half of the year can avoid the 183-day threshold in the first year
• ✛Retirement planning: pension plan contributions reduce the general base

Anyone working internationally should look at the total burden across all countries. A foreign company only brings benefits if it is actually managed there. Entrepreneurs planning international expansion can, for example, consider company formation in Georgia, where low tax rates and digital processes create attractive conditions. A comparison of common structures is in UK LLP vs Hong Kong vs EU; how passport, residence and company can be combined is shown in flag theory. For a comparison with another high-tax country, read Austria taxes.

Conclusion

Taxes in Spain are high for residents in 2026 but strongly shaped by the region. What matters is the right region, a planned arrival with a Beckham application, reporting foreign assets in Modelo 720 and keeping an eye on wealth and solidarity tax. Companies benefit from falling rates for small businesses, the patent box and the participation exemption.

SWICOR . SWISS CORPORATE SOLUTIONS supports you with residency abroad, company formation in suitable jurisdictions, the bank account and tax optimisation – fully remote and at transparent fixed prices.

Frequently asked questions