Taxes in Spain for Expats: A Beginner's Overview

Tax residency, not nationality, decides how much you owe in Spain, and getting this wrong is one of the most common expensive mistakes newcomers make.

Are you a tax resident?

You're generally considered a Spanish tax resident if you spend more than 183 days a year in the country, or if your main economic interests are based there. Residents pay tax on worldwide income; non-residents only pay on Spanish-sourced income.

Income tax rates

National rates are progressive, from about 19% on the first bracket up to 47% on the highest incomes, with each autonomous region adding its own scale on top, so your exact rate depends partly on where in Spain you live.

Non-residents

Non-residents pay a flat rate, generally 24%, or 19% for residents of other EU/EEA countries, on Spanish-sourced income such as rental income from a Spanish property.

Double taxation for Americans

The US taxes citizens on worldwide income regardless of residency, but the US-Spain tax treaty and the Foreign Tax Credit generally prevent paying full tax twice on the same income. A cross-border accountant is worth the fee in your first year.