How income tax works in Spain
Spanish tax residents generally pay IRPF on worldwide income, while non-residents normally pay Non-Resident Income Tax only on Spanish-source income. Tax residence is usually assessed for the full calendar year.
IRPF separates a general taxable base from a savings taxable base. The general base covers employment, business, pension and most rental income; the savings base covers dividends, interest and capital gains from transfers.
The 2026 reference withholding scale is 19% up to EUR 12,450, 24% to EUR 20,200, 30% to EUR 35,200, 37% to EUR 60,000, 45% to EUR 300,000 and 47% above EUR 300,000. Final tax is not identical everywhere because the autonomous community adds its own progressive scale and deductions.
Employment income is normally withheld through payroll. In 2026 the employee share for an indefinite contract is about 4.7% for common contingencies, 1.55% for unemployment, 0.10% for training and 0.15% for the intergenerational-equity mechanism, before contract-specific items; the employer pays a much larger separate share.
Self-employed contributions are separate from IRPF and are based on the income bracket under the RETA system. The core 2026 rates include 28.30% for common contingencies, 1.30% for professional contingencies, 0.90% for cessation of activity, 0.10% for training and a 0.90% intergenerational-equity contribution on the relevant base.
Income tax brackets in Spain
| Bracket | Rate | Notes |
|---|---|---|
| EUR 0 - EUR 12,450 | 19% | 2026 reference withholding scale |
| EUR 12,451 - EUR 20,200 | 24% | 2026 reference withholding scale |
| EUR 20,201 - EUR 35,200 | 30% | 2026 reference withholding scale |
| EUR 35,201 - EUR 60,000 | 37% | 2026 reference withholding scale |
| EUR 60,001 - EUR 300,000 | 45% | 2026 reference withholding scale |
| Above EUR 300,000 | 47% | The final regional IRPF rate can be higher |
Tax rates at a glance
- Personal income tax
- 19% - 54%Regional
- Reference employment scale
- 19% - 47%2026
- Top marginal rate
- About 54%
- Savings income
- 19% - 30%
- Impatriate regime
- 24% to EUR 600,000
- Employee social security
- About 6.5%+
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
ExpatsEmployeesFreelancersHigh earnersDigital nomads
Watch out for
- The 19% to 47% table is a useful 2026 withholding reference, not a universal final tax table. Regional rates, personal and family minimums, deductions and filing status can change the result; the top marginal rate can reach about 54%.
- Spain can treat sporadic absences as part of the 183-day calculation. The centre of economic interests and a presumption based on a spouse or dependent children can also create residence exposure.
- Qualifying people moving to Spain for employment, remote work, professional, entrepreneurial or investment reasons may elect the special impatriate regime. The five-year prior non-residence test, application deadline and income-scope rules need to be checked before moving.
- The ordinary annual return is generally filed in the spring and early summer after the calendar year. Payroll withholding is only an advance payment, so it does not prove that the final liability is settled.
- Foreign salary, pensions, dividends, rental income and financial assets can remain reportable for Spanish residents. Double-tax relief depends on the foreign tax paid and the applicable treaty.
Frequently asked questions
Do expats pay income tax in Spain?
Yes, when they become Spanish tax residents or receive Spanish-source income. Residents generally report worldwide income; non-residents usually pay Spanish tax only on Spanish-source income.
What are the 2026 income tax brackets in Spain?
The 2026 reference withholding scale is 19%, 24%, 30%, 37%, 45% and 47% across bands ending at EUR 12,450, EUR 20,200, EUR 35,200, EUR 60,000 and EUR 300,000. The final IRPF bill also depends on the autonomous community.
What is Spain's impatriate or Beckham regime?
It lets qualifying people who move to Spain for work or certain professional, entrepreneurial or investment activities elect a Non-Resident Income Tax style regime while remaining Spanish tax residents. The rate is generally 24% up to EUR 600,000 and 47% above that, subject to the statutory conditions and filing election.