Key Takeaways
- IRPF is Spain’s income tax — progressive from 19% to 47%. The rate applies to income bands, not all income at the highest rate. Most expats on middle incomes pay effective rates of 22–28%.
- The Renta filing window is April–June each year. Miss it and you face surcharges. The tax year runs January–December, same as the calendar year.
- The Beckham Law offers a flat 24% rate for qualifying newcomers on income up to €600,000/year — significant for higher earners moving to Spain from the UK, US, or elsewhere.
- Autónomos file quarterly via Modelo 130 as well as an annual Modelo 100. Getting a gestoría to handle this costs €80–€150/month and is worth every cent.
- Double taxation agreements exist with the UK and US — you won’t be taxed twice on the same income, but you must actively file in both countries to invoke them.
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Spain’s personal income tax — IRPF, Impuesto sobre la Renta de las Personas Físicas — is a progressive system that applies to residents worldwide and to non-residents on Spanish-sourced income. If you’ve moved to the Costa del Sol, or are planning to, understanding how IRPF works is non-negotiable. It affects every financial decision you make here.
IRPF Tax Rates for 2024/2025
Spain operates a split income tax structure: the national government sets a base rate, and each autonomous community (Andalucía, in our case) adds a regional rate. The combined figures below represent what you actually pay:
State + Regional Combined Rates (Andalucía)
| Taxable Income Band | Combined Rate |
|---|---|
| €0 – €12,450 | 19% |
| €12,450 – €20,200 | 24% |
| €20,200 – €35,200 | 30% |
| €35,200 – €60,000 | 37% |
| €60,000 – €300,000 | 45% |
| €300,000+ | 47% |
Andalucía’s regional rates are broadly comparable to the national average — not the highest in Spain (that’s Cataluña) and not the lowest (that’s Madrid, which explains why many wealthy expats choose Madrid over the coast for tax purposes). The difference between Andalucía and Madrid is typically 2–4 percentage points on higher income bands.
A Practical Example
If your taxable income (after allowances) is €45,000:
- First €12,450 taxed at 19% = €2,365.50
- Next €7,750 (€12,450–€20,200) at 24% = €1,860
- Next €15,000 (€20,200–€35,200) at 30% = €4,500
- Remaining €9,800 (€35,200–€45,000) at 37% = €3,626
- Total: approximately €12,351 — an effective rate of 27.4%
Who Has to File
You must file a Declaración de la Renta (Modelo 100) if you are:
- A Spanish tax resident with employment income above €22,000/year from a single employer
- A Spanish tax resident with employment income above €15,000/year from two or more employers
- Self-employed (autónomo) with any income
- Earning investment income, rental income, or capital gains above €1,600/year
- A non-resident with Spanish-sourced income (different form: Modelo 210)
tax residency in Spain is triggered by spending more than 183 days per calendar year in Spain, or having your main economic interests here. Once resident, you’re taxed on your worldwide income — not just Spanish income. See our guide to Spain expat tax deadlines for the full calendar.
Filing Deadlines
The Renta campaign — the annual window to file your income tax return — runs approximately 1 April to 30 June each year. The exact dates vary slightly year to year but this window is consistent.
- From 1 April: Online filing opens via Agencia Tributaria’s Renta Web system
- From mid-May: Telephone appointments available for assisted filing
- From early June: In-person appointments at tax office available
- 30 June: Filing deadline. Miss it and a surcharge applies: 1% per month up to 12 months late, then 15% thereafter plus interest
If your return shows a refund (devolución), you can request direct bank transfer. Most refunds are paid within 2–3 months of filing.
Personal Allowances
Before applying the tax bands, you reduce your gross income by allowances (mínimo personal y familiar):
- Base personal allowance: €5,550 — applies to all taxpayers
- Age 65+: additional €1,150 (total €6,700)
- Age 75+: additional €1,400 on top of the age 65+ allowance (total €8,100)
- Disability allowances: €3,000–€9,000 depending on degree of disability
- Child allowances: €2,400 for the first child, €2,700 for the second, €4,000 for the third, €4,500 for each additional child
- Employment expense deduction: €2,000 flat for employed workers
These allowances reduce the amount of income subject to tax — they’re not direct tax credits. A single person with no dependants and a €35,000 salary would deduct €7,550 (€5,550 personal + €2,000 employment) before applying the tax bands.
The Beckham Law (Régimen Especial de Trabajadores Desplazados)
One of Spain’s most significant tax incentives for incoming expats. The Beckham Law — formally the Special Tax Regime for Displaced Workers, named informally after the footballer who famously used it — allows qualifying individuals to pay a flat 24% rate on Spanish-sourced income up to €600,000/year, rather than the progressive IRPF scale.
Who Qualifies
- Have not been a Spanish tax resident in the 5 years prior to moving here
- Moving to Spain as a result of an employment contract with a Spanish company, or working remotely for a non-Spanish employer
- Since 2023, the regime was expanded to include digital nomads, entrepreneurs, and highly qualified professionals under the Startup Act
The Benefit
Instead of progressive rates reaching 45–47%, you pay 24% on income up to €600,000. On income above €600,000, the rate is 47%. You also pay non-resident rates on investment income (19–26% rather than the potentially higher resident rates).
The Tradeoff
Under Beckham Law, you’re treated as a non-resident for tax purposes — meaning you’re only taxed on Spanish-sourced income, not worldwide income. This sounds advantageous but can complicate UK or US tax situations. Double taxation agreement interactions should be reviewed with a specialist before applying.
The regime applies for up to 6 years. You must apply within 6 months of registering with Spanish social security.
Autónomos and Self-Employed Tax
If you’re registered as autónomo (self-employed), your tax obligations include:
- Modelo 130: Quarterly income tax advance payments, filed in January, April, July, and October. You pay 20% of net profit each quarter as an advance against your annual bill.
- Modelo 303: Quarterly VAT return (if your activities are subject to IVA). Standard rate is 21%.
- Modelo 100: Annual income tax return in April–June, reconciling all quarterly payments against actual tax due.
The quarterly filings and annual reconciliation are complex enough that most autónomos on the Costa del Sol use a gestoría — expect to pay €80–€150/month for a good one. Full details in our autónomo guide. For the social security side of self-employment, see our social security guide.
Double Taxation: UK and US
UK–Spain Double Taxation Agreement
Spain and the UK have a comprehensive double taxation agreement (DTA) — post-Brexit, this agreement remains in force. It determines which country has taxing rights over different income types:
- Employment income: Generally taxed where the work is performed
- UK pensions: Generally taxable in Spain once you’re resident here (not in the UK). UK state pension and most private pensions fall here.
- UK rental income: Taxable in both countries; Spanish tax credits apply for UK tax already paid
- Dividends and interest: Limited source-country taxation, with credit mechanism
Practically: if you’re a Spanish tax resident receiving UK income, you declare it on your Spanish Renta. You claim credit for any UK tax already withheld. You may still need to file a UK self-assessment to confirm non-residency status.
US–Spain Double Taxation Agreement
The US taxes its citizens on worldwide income regardless of where they live — a unique position among developed countries. The US–Spain DTA and the Foreign Tax Credit mechanism prevent genuine double taxation, but US citizens in Spain carry a dual filing obligation indefinitely. US expat tax is complex enough to require a specialist adviser familiar with both systems. The FBAR (FinCEN 114) obligation for foreign bank accounts also applies independently of income tax.
Rental Income: Residents vs Non-Residents
This distinction matters on the Costa del Sol, where property rental is common:
Tax Residents
Rental income is included in your Renta declaration and taxed at IRPF progressive rates, after deducting allowable expenses: mortgage interest, maintenance, management fees, insurance, IBI (property tax), depreciation (3% of construction value annually). For long-term rentals, a 60% reduction on net profit applies, making effective taxation much lower.
Non-Residents
Non-residents owning property in Spain pay IRNR (Impuesto sobre la Renta de No Residentes) on rental income at 19% (EU/EEA residents) or 24% (others). Quarterly filings via Modelo 210 are required. Expense deductions are more limited for non-EU residents. Even if the property is not rented, a deemed income (imputación de rentas) is calculated and taxed.
Full details in our rental income tax guide.
Common Deductions
- Mortgage deduction (pre-2013 purchases): If you bought your habitual residence before 1 January 2013, a 15% deduction on mortgage payments up to €9,040/year still applies. Post-2013 purchases: no deduction.
- Maternity deduction: €1,200/year per child under 3 for working mothers. Extended to single fathers in some circumstances.
- Large family deduction: €1,200/year for 3+ children (general large family) or €2,400/year for 5+ children (special large family).
- Pension contributions: Contributions to qualifying Spanish pension plans (planes de pensiones) are deductible up to the lower of €1,500/year or 30% of net employment income.
- Rental of habitual residence (pre-2015): If you signed a rental contract before 1 January 2015 and it was your main home, a 10.05% deduction on rent paid applies — up to a cap based on income.
- Donations: Contributions to qualifying non-profits: 80% deductible on first €150, 35% thereafter.
Capital gains on investments and property sales are taxed separately at savings tax rates (19–28%). Full details in our capital gains tax guide. If you hold overseas assets above €50,000, the Modelo 720 declaration obligation applies.
Related Guides
- Tax Residency in Spain
- Beckham Law Spain: Complete Guide
- Beckham Law vs Normal Tax in Spain
- Digital Nomad Visa Spain: Tax Guide
- Capital Gains Tax in Spain
- What Is a Gestoria in Spain
- Finding a Good Gestor on the Costa del Sol
Frequently Asked Questions
When do I become a Spanish tax resident?
The moment you’ve spent more than 183 days in Spain in a calendar year, or if Spain is your main centre of economic or personal interests. Days are counted on a cumulative basis per calendar year — you don’t need to be continuously resident. If you arrive in June and spend the rest of the year in Spain (more than 183 days total), you’re a tax resident for that full year.
What’s the difference between IRPF and IRNR?
IRPF (Impuesto sobre la Renta de las Personas Físicas) applies to tax residents and taxes worldwide income at progressive rates. IRNR (Impuesto sobre la Renta de No Residentes) applies to non-residents on Spanish-sourced income only, at flat rates (generally 19% for EU/EEA citizens, 24% for others). Once you become a tax resident, IRPF applies instead.
Can I apply for the Beckham Law if I’m already in Spain?
No. The application must be submitted within 6 months of your initial registration with Spanish social security (alta en la Seguridad Social). If you registered more than 6 months ago, the window has closed. There’s no retrospective application route.
Do I have to declare my UK or US pension in Spain?
Generally yes, once you’re a Spanish tax resident. Pension income received from foreign sources is declarable in Spain under IRPF. The double taxation agreement determines whether you get a credit for any foreign tax already deducted. UK private pensions transferred to QROPS or SIPP structures have specific rules. US 401(k)/IRA distributions have their own DTA treatment. Get specialist advice before your first Renta filing that includes foreign pension income.
What happens if I miss the June 30 filing deadline?
If you file voluntarily after the deadline (before the Agencia Tributaria contacts you): a surcharge of 1% per month, rising to 15% after 12 months, plus late payment interest. If the Agencia Tributaria initiates proceedings first: surcharges range from 50–150% of the underpaid tax depending on the severity. For most expats, the cost of missing the deadline exceeds the cost of hiring a gestoría to file on time.
What is Modelo 720 and does it affect me?
Modelo 720 is Spain’s declaration of overseas assets — bank accounts, securities, real estate — held outside Spain with a combined value exceeding €50,000 per category. It’s an informational return, not a tax payment, but failure to file or inaccurate filing historically carried severe penalties (currently being revised following EU Court of Justice rulings). If you have significant assets outside Spain, see our Modelo 720 guide. See also our full expat tax deadline calendar to keep all filings on track.
