Spanish Taxes for Expats: Complete Guide 2025

Understanding Spanish taxes is essential for anyone living, working, or earning income in Spain. This comprehensive guide explains tax residency rules, income tax rates, filing requirements, the Beckham Law, and how to navigate Spain’s tax system as an expat in 2025.

Quick Facts:

• Tax Residency Threshold: 183+ days per year in Spain
• Income Tax Rates (IRPF): 19-47% progressive (residents), 24% flat (non-residents on Spanish income)
• Annual Tax Return: Modelo 100 (deadline: April 1 - June 30)
• Tax Year: January 1 - December 31
• Beckham Law: 15% flat rate on Spanish income for eligible newcomers (up to 6 years)
• Wealth Tax: Applies if net worth exceeds €700,000-€3,000,000 (varies by region)
• Main Tax Agency: Agencia Tributaria (AEAT) - agenciatributaria.gob.es

Spanish Tax Residency: Are You a Tax Resident?

Your tax obligations in Spain depend primarily on whether you’re a tax resident or non-resident.

Tax Residency Test

You’re a Spanish tax resident if you meet ANY of these criteria:

1. Physical Presence Test (183-Day Rule): You spend 183 days or more in Spain during a calendar year (January 1 - December 31).

Days Count:

• Full days in Spain count (arrival and departure days both count)
• Short trips abroad are included in your Spanish day count unless you can prove you were tax resident elsewhere
• Track your days carefully (use a spreadsheet or app)

Example:

• Arrived in Spain: March 15, 2025
• Days in Spain: March 15 - December 31 = 292 days
• Result: Tax resident in 2025

2. Center of Economic Interests: Your main economic activities or income sources are in Spain.

Indicators:

• Spanish employment is your primary income source
• You own a business operating in Spain
• Your investments are primarily in Spain

Example: A British retiree lives in Spain 150 days/year but receives all income from UK pension and UK rental properties. Despite time in Spain, their economic center is the UK—not automatically a Spanish tax resident (though 183-day rule is primary test).

3. Family Residence (Spouse/Minor Children): Your spouse and/or dependent children (under 18) habitually reside in Spain.

Rebuttable Presumption: If your family lives in Spain, Spanish tax authorities presume you’re a tax resident unless you prove otherwise (e.g., you work abroad full-time).

Example: A consultant travels globally but their spouse and children live in Madrid year-round. Spanish authorities will likely consider them a tax resident.

Tax Residency Implications

If You’re a Tax Resident:

• Taxed on worldwide income (all income from Spain and abroad)
• Must file annual Spanish tax return (Modelo 100)
• Subject to Spanish wealth tax (if applicable)
• Progressive income tax rates: 19-47%
• Access to tax deductions and allowances

If You’re a Non-Resident:

• Taxed only on Spanish-sourced income
• Flat 24% tax rate on most Spanish income (19% for EU/EEA residents)
• May need to file non-resident tax returns (Modelo 210)
• No wealth tax (unless you own Spanish property)
• Limited deductions

Becoming a Tax Resident: First Year Rules

When does tax residency start?

If you move to Spain mid-year and meet the 183-day threshold, you’re a tax resident for the entire year (not just from your arrival date).

Example:

• Moved to Spain: July 1, 2025
• Days in Spain: July 1 - December 31 = 184 days
• Tax residency status for 2025: Full-year resident (taxed on worldwide income from January 1, 2025)

Implication: Your worldwide income from January 1 - December 31, 2025 is taxable in Spain (though you may claim foreign tax credits for taxes paid to other countries before moving).

First-Year Exception (Beckham Law): Eligible newcomers can apply for special tax status taxing only Spanish income at 15% flat rate (see Beckham Law section below).

Spanish Income Tax (IRPF) for Residents

IRPF (Impuesto sobre la Renta de las Personas Físicas) is Spain’s personal income tax.

2025 Income Tax Rates (Residents)

Spanish income tax combines national and regional (autonomous community) rates. Total rates:

Taxable Income	National Rate	Regional Rate (Avg.)	Combined Rate
€0 - €12,450	9.5%	~9.5%	19%
€12,450 - €20,200	12%	~12%	24%
€20,200 - €35,200	15%	~15%	30%
€35,200 - €60,000	18.5%	~18.5%	37%
€60,000 - €300,000	22.5%	~22.5%	45%
€300,000+	24.5%	~22.5%	47%

Note: Regional rates vary by autonomous community. Madrid and Andalusia have lower rates; Catalonia has higher rates.

What Income Is Taxed?

Taxable Income Sources:

• Employment income (Trabajo): Salaries, wages, bonuses
• Self-employment income (Actividades Económicas): Freelance, business profits
• Capital gains (Ganancias Patrimoniales): Sale of property, stocks, investments
• Investment income (Rendimientos del Capital): Dividends, interest, rental income
• Pension income: Spanish and foreign pensions
• Other income: Royalties, prizes, awards

Tax-Free Income:

• First €1,500 of dividends (residents only)
• Certain social benefits
• Sale of primary residence (if reinvested in new primary residence within 2 years, age 65+)

Tax Deductions and Allowances

Personal Allowances:

• Personal minimum (Mínimo Personal): €5,550 (tax-free)
• Spouse allowance: Additional amount if filing jointly
• Children allowances: €2,400 (first child), €2,700 (second), €4,000 (third), €4,500 (each additional)
• Age allowance: Additional for taxpayers 65+ or 75+

Deductible Expenses:

• Mortgage interest: Up to €9,040/year on primary residence (for mortgages signed before 2013)
• Pension contributions: Up to €1,500/year
• Charitable donations: 80% of first €150, 35-40% above
• Business expenses: For autónomos (office supplies, coworking, travel, etc.)
• Professional development: Job-related courses (with limitations)

Regional Deductions: Each autonomous community offers additional deductions (rental housing, dependents, energy efficiency, etc.). Check your region’s tax agency.

How Tax Is Withheld

Employees (Cuenta Ajena): Employers withhold income tax (retención) from each paycheck based on your estimated annual income and send it to the Tax Agency. Typical withholding: 15-35%.

Self-Employed (Autónomos): Clients typically withhold 15% from invoices (unless you’re exempt). You also make quarterly prepayments (Modelo 130 - 20% of net profit).

Annual Reconciliation: When you file your annual return (Modelo 100), you calculate actual tax owed, subtract withholdings/prepayments, and either:

• Pay additional tax owed, OR
• Receive a refund if you overpaid

Annual Tax Return (Modelo 100)

Modelo 100 is Spain’s annual personal income tax return.

Filing Deadline

April 1 - June 30 (following year)

Example: For 2025 income, file between April 1 - June 30, 2026.

Extension: If you owe tax and choose to pay in two installments, first payment deadline is June 30, second is November 5.

Who Must File?

Required to File If:

• Annual income >€22,000 from one employer (payer)
• Annual income >€15,000 from two or more employers/payers
• Annual income >€1,600 from investments, rental property, or capital gains
• Self-employed (autónomo) with any income
• You received tax refund last year and claimed it

Not Required to File If:

• Single employer, income <€22,000, tax fully withheld
• Only income is Spanish social security benefits <€22,000

Recommendation: Even if not required, file if you’re eligible for a refund (excess withholdings).

How to File Modelo 100

Method 1: Online (Renta Web)

Most people file online via the Tax Agency website.

Steps:

1. Access: sede.agenciatributrica.gob.es
2. Log in with:
   • Cl@ve PIN (obtain via SMS verification), OR
   • Digital Certificate (certificado digital), OR
   • Reference Number (Número de Referencia - obtain on Tax Agency site with previous year’s return data)
3. Tax Agency provides borrador (draft tax return) pre-filled with data from employers, banks, etc.
4. Review borrador for accuracy
5. Add any missing income or deductions
6. Submit electronically
7. Receive confirmation

Method 2: In-Person Assistance

Book appointment at Tax Agency office (Agencia Tributaria) for help preparing your return.

When: April-June (appointment required)

Service: Tax Agency staff assist with preparing and filing (free)

Tip: Book early—appointments fill quickly.

Method 3: Hire Tax Advisor (Asesor Fiscal)

Tax advisors prepare and file your return for €100-€500 depending on complexity.

Find Tax Advisors →

Modelo 100: Key Sections

Part 1: Personal Data

• Name, NIE, address, family situation

Part 2: Income

• Employment income (Trabajo)
• Self-employment income (Actividades Económicas)
• Investment income (Rendimientos del Capital)
• Capital gains (Ganancias Patrimoniales)

Part 3: Deductions

• Personal allowances
• Mortgage interest, pension contributions, donations
• Regional deductions

Part 4: Tax Calculation

• Gross income minus deductions = taxable income
• Apply tax rates
• Subtract withholdings/prepayments
• Result: Tax owed or refund

Payment or Refund

If You Owe Tax:

• Pay online (bank transfer, credit card)
• Pay at bank (presentar Modelo 100 with payment)
• Option: Split payment (60% by June 30, 40% by November 5)

If You’re Owed a Refund:

• Provide Spanish IBAN (bank account)
• Refund typically processed within 3-6 months
• Check status: sede.agenciatributaria.gob.es

Beckham Law (Special Expat Tax Regime)

The Beckham Law (Ley Beckham), officially the Special Regime for Workers Displaced to Spain (Régimen Especial de Trabajadores Desplazados a España), is a favorable tax regime for qualifying expats.

What Is the Beckham Law?

Instead of paying progressive income tax (19-47%) on worldwide income, eligible expats pay:

• 15% flat rate on Spanish-sourced income up to €600,000
• 24% flat rate on Spanish income above €600,000
• 0% on foreign-sourced income (not taxed in Spain)

Duration: Up to 6 years (year of arrival + 5 additional years)

Who Qualifies for Beckham Law?

Eligibility Criteria:

1. Relocation to Spain for Work: You moved to Spain due to:

• Employment contract with Spanish company, OR
• Employment with foreign company with operations in Spain, OR
• Director/administrator of Spanish company, OR
• Remote work/self-employment (Digital Nomad Visa qualifies)

2. Haven’t Been Spanish Tax Resident in Previous 5 Years: You weren’t a Spanish tax resident in the 5 years before moving.

3. Work Activity in Spain: Your work is performed in Spain (remote work for foreign companies counts).

4. Application Deadline: Apply within 6 months of:

• Obtaining your Spanish residence permit (TIE card), OR
• Starting work in Spain (whichever is earlier)

How to Apply for Beckham Law

Form: Modelo 149 (Opción por el Régimen Especial)

Documents:

• Employment contract or self-employment documentation
• Proof you weren’t Spanish tax resident in prior 5 years
• Copy of TIE (residence card) or visa
• Cover letter explaining your situation

Submission: Submit to Tax Agency (Agencia Tributaria) via:

• Online: sede.agenciatributaria.gob.es
• In-person: Local Tax Agency office
• By mail

Processing Time: 3-6 months

Cost: No application fee. Consider hiring tax advisor (€500-€1,500) to prepare application.

Beckham Law: Taxation Examples

Example 1: Software Developer (Digital Nomad)

• Spanish-sourced income: €0 (works remotely for US company)
• Foreign-sourced income: €80,000/year (US salary)
• Beckham Law Tax: €0 (foreign income not taxed)
• Standard Tax (if no Beckham Law): ~€20,000 (19-37% on €80,000 worldwide income)
• Savings: €20,000/year

Example 2: Corporate Executive

• Spanish-sourced income: €120,000/year (Spanish company)
• Foreign-sourced income: €30,000/year (foreign dividends)
• Beckham Law Tax: €120,000 × 15% = €18,000 (foreign income exempt)
• Standard Tax: ~€45,000 (19-45% on €150,000 worldwide income)
• Savings: €27,000/year

Example 3: High Earner

• Spanish-sourced income: €700,000/year
• Foreign-sourced income: €100,000/year
• Beckham Law Tax: (€600,000 × 15%) + (€100,000 × 24%) = €90,000 + €24,000 = €114,000 (foreign income exempt)
• Standard Tax: ~€360,000 (45-47% on €800,000 worldwide income)
• Savings: €246,000/year

Beckham Law Disadvantages

1. No Personal Allowances: You can’t claim standard deductions (personal minimum, children allowances, mortgage interest).

2. Higher Rate for Low Earners: If earning <€50,000, standard progressive rates may be better (19-24% vs. 15% flat).

3. Spanish Assets Taxed: Spanish rental income, Spanish dividends, Spanish capital gains taxed at 19-26% (savings income rates), not the favorable 15%.

4. No Wealth Tax Break: You’re still subject to wealth tax (if applicable) just like regular tax residents.

Who Benefits Most:

• High earners with foreign income (€80,000+/year)
• Remote workers/digital nomads earning foreign income
• Expats with significant foreign investments or rental income

Digital Nomad Visa & Beckham Law →

Non-Resident Taxation (Modelo 210)

If you’re not a Spanish tax resident but earn Spanish-sourced income, you file Modelo 210 (Non-Resident Income Tax).

Non-Resident Tax Rates

Spanish Income:

• Employment, business, or professional income: 24% flat rate (19% for EU/EEA residents)
• Capital gains (property sales): 19%
• Rental income: 24% (19% for EU/EEA residents)
• Dividends, interest: 19%

When to File:

• Quarterly: For rental income (Modelo 210 quarterly)
• Annually: For capital gains (property sale), within 3 months of transaction
• Upon withholding: If Spanish payer withholds tax, no filing needed (already paid)

Common Non-Resident Scenarios

1. Holiday Home Rental: If you’re a UK citizen, live in the UK, and rent out a Spanish holiday home, you file Modelo 210 quarterly on rental income at 19% (EU rate).

2. Property Sale: If you sell Spanish property as a non-resident, you file Modelo 210 within 3 months, paying 19% on capital gains.

3. Spanish Pension: If you receive a Spanish pension while living abroad, Spain withholds tax (usually 24%) and you don’t file Modelo 210 unless reclaiming overpayment.

Wealth Tax (Impuesto sobre el Patrimonio)

Spain’s wealth tax applies to residents and non-residents (on Spanish assets only).

Wealth Tax Thresholds (2025)

National:

• Exempt: First €700,000 of net worth
• Primary residence: First €300,000 exempt

Rates: 0.2-3.5% on net worth above thresholds (progressive)

Regional Variations: Autonomous communities set their own thresholds and rates. Madrid has eliminated wealth tax (0% rate). Catalonia has higher rates.

What Assets Are Counted?

Included:

• Real estate (minus mortgages)
• Bank accounts, savings
• Investments (stocks, bonds, funds)
• Business assets
• Vehicles, boats, jewelry, art (if high value)
• Crypto currency

Excluded:

• Business assets (if >5% ownership and actively involved)
• Primary residence (first €300,000)
• Pension funds

Example:

• Primary residence: €500,000 (mortgage: €200,000) → Net: €300,000 (€300,000 exempt = €0 taxable)
• Investment property: €400,000 (mortgage: €150,000) → Net: €250,000
• Savings/investments: €600,000
• Total net worth: €1,150,000
• Taxable wealth: €1,150,000 - €700,000 (general exemption) = €450,000
• Wealth tax: ~€1,800-€2,500 (depending on region)

Wealth Tax Filing

Form: Modelo 714

Deadline: April 1 - June 30 (same as Modelo 100)

Who Must File:

• Net worth >€2,000,000 (always)
• Net worth €700,000-€2,000,000 (if owed wealth tax after exemptions)

Non-Residents: Only Spanish assets counted (foreign assets exempt).

Capital Gains Tax

Capital gains are taxed as savings income (Rendimientos del Ahorro) at special rates, not standard income rates.

Capital Gains Tax Rates (2025)

Gain Amount	Tax Rate
€0 - €6,000	19%
€6,000 - €50,000	21%
€50,000 - €200,000	23%
€200,000 - €300,000	27%
€300,000+	28%

Common Capital Gains

Property Sale: Sale price minus purchase price (minus transaction costs, renovations) = capital gain

Example:

• Purchase price: €200,000 (2010)
• Sale price: €350,000 (2025)
• Costs: €15,000 (notary, agent fees, renovations)
• Capital gain: €350,000 - €200,000 - €15,000 = €135,000
• Tax: (€6,000 × 19%) + (€44,000 × 21%) + (€85,000 × 23%) = €1,140 + €9,240 + €19,550 = €29,930

Primary Residence Exemption (Age 65+): If you’re 65+ and sell your primary residence, capital gains are tax-free (or tax-deferred if reinvested in annuity).

Stock/Investment Sales: Gains from selling stocks, funds, crypto taxed at savings rates (19-28%).

Losses: Capital losses offset capital gains (but not other income). Unused losses carry forward 4 years.

Social Security Contributions

In addition to income tax, employees and self-employed pay Social Security (Seguridad Social).

Employee Contributions

Employees (Cuenta Ajena):

• Employee pays: ~6.35% of gross salary
• Employer pays: ~29.9% (employer’s cost, not deducted from your salary)
• Combined: ~36.25%

What It Covers: Public healthcare, unemployment insurance, pension, maternity/paternity leave.

Withholding: Automatically deducted from paycheck.

Self-Employed (Autónomo) Contributions

Autónomos:

• Pay fixed monthly Social Security: €80/month (year 1, Tarifa Plana), €294/month (year 2), then income-based (€317-€600/month typical)

Complete Autónomo Guide →

VAT (IVA) - Value Added Tax

IVA (Impuesto sobre el Valor Añadido) is Spain’s VAT, similar to sales tax.

Standard Rate: 21% (most goods and services)

Reduced Rate: 10% (hospitality, transport, housing)

Super-Reduced Rate: 4% (basic foods, medicines, books)

Who Charges VAT?

Businesses and Autónomos:

• Charge VAT on invoices to customers
• Pay VAT on business expenses
• File quarterly (Modelo 303), remitting net VAT (collected minus paid)

Employees: Don’t handle VAT (employers do).

Consumers: Pay VAT on purchases (included in prices).

Autónomo VAT Guide →

Tax Treaties (Avoiding Double Taxation)

Spain has tax treaties with 90+ countries to prevent double taxation.

How Tax Treaties Work

If you earned income in another country before moving to Spain (and paid tax there), you can typically:

• Foreign Tax Credit: Deduct foreign taxes paid from Spanish tax owed, OR
• Tax Exemption: Exempt foreign income under treaty provisions

Example:

• Moved to Spain: July 1, 2025
• Income Jan-June in USA: $40,000 (US tax paid: $6,000)
• Income July-Dec in Spain: €30,000 (Spanish tax paid: €6,000)
• Modelo 100 for 2025: Declare worldwide income (US + Spain). Claim foreign tax credit for $6,000 US taxes, reducing Spanish tax owed.

Countries with Treaties: US, UK, Canada, Australia, Germany, France, etc.

AEAT Tax Treaty List →

Common Tax Mistakes Expats Make

Mistake 1: Not Registering as Tax Resident

Problem: Living in Spain 183+ days but not declaring worldwide income.

Consequence: Tax fraud. If caught (e.g., via automatic data exchange with other countries), penalties of 50-150% of unpaid tax plus interest.

Solution: Register as tax resident and file Modelo 100 accurately.

Mistake 2: Missing Beckham Law Deadline

Problem: Eligible for Beckham Law but didn’t apply within 6 months of obtaining residence permit.

Consequence: Lose eligibility for special tax regime (can save €10,000-€100,000+/year).

Solution: Apply immediately after obtaining TIE card. Hire tax advisor if unsure.

Mistake 3: Not Declaring Foreign Assets (Modelo 720)

Problem: Spanish tax residents with foreign assets >€50,000 must declare via Modelo 720 (by March 31 annually).

Consequence: Failure to declare: fines up to €100,000 or 150% of asset value. One of Spain’s harshest penalties.

Solution: File Modelo 720 if you have: foreign bank accounts >€50,000, foreign securities >€50,000, or foreign real estate.

Mistake 4: Assuming “Tax-Free” = No Filing Obligation

Problem: Earning <€22,000 and thinking you don’t need to file.

Consequence: If you’re a tax resident, you should file if owed a refund, or if you meet other criteria (multiple payers, investment income, etc.).

Solution: File even if not required, especially if you had withholdings—you may get a refund.

Mistake 5: Not Getting Professional Help

Problem: DIY tax returns with complex situations (foreign income, investments, property, self-employment).

Consequence: Errors leading to underpayment (fines) or overpayment (losing money).

Solution: Hire a tax advisor (€150-€500) for peace of mind and tax optimization.

When to Hire a Tax Advisor

DIY Your Taxes If:

• Single income source (Spanish employment)
• Income <€50,000/year
• No foreign income or assets
• No investments or property
• Comfortable with Spanish or using online tools

Hire a Tax Advisor If:

• Multiple income sources (employment + freelance + rental + investments)
• Foreign income or foreign assets
• High income (€80,000+/year)
• Eligible for Beckham Law
• Autónomo with complex finances
• Buying/selling property
• Capital gains or wealth tax issues
• Want tax optimization (deductions, strategies)

Cost: €150-€800/year depending on complexity

ROI: Tax advisors typically save you more than they cost (through deductions, avoiding penalties, Beckham Law applications).

Find Tax Advisors →

Key Deadlines for Spanish Taxes

Tax/Form	Frequency	Deadline
Modelo 100 (Annual Income Tax)	Annual	April 1 - June 30
Modelo 130 (Autónomo Quarterly IRPF)	Quarterly	Apr 20, Jul 20, Oct 20, Jan 30
Modelo 303 (Autónomo Quarterly VAT)	Quarterly	Apr 20, Jul 20, Oct 20, Jan 30
Modelo 714 (Wealth Tax)	Annual	April 1 - June 30
Modelo 720 (Foreign Assets Declaration)	Annual	March 31
Modelo 210 (Non-Resident Tax)	Varies	Quarterly or upon transaction

Late Filing Penalties:

• 1 day - 3 months late: 5% surcharge
• 3 - 6 months late: 10% surcharge
• 6 - 12 months late: 15% surcharge
• 12+ months late: 20% surcharge + interest

Set Calendar Reminders!

Get Expert Help

Spanish taxes are complex, especially for expats with foreign income, investments, or property. Professional help is strongly recommended.

Recommended Services:

• Tax Advisors (Asesores Fiscales) → - Complete tax planning, Modelo 100, Beckham Law applications (€200-€800/year)
• Accountants (Asesores Contables) → - For autónomos: quarterly filings + annual returns (€100-€250/month)
• Gestorías → - Basic tax filing, paperwork assistance (€150-€400/year)

Related Guides

• Digital Nomad Visa → - Beckham Law eligibility for digital nomads
• Autónomo Self-Employment → - Tax obligations for freelancers
• NIE Number Application → - Your NIE is your tax ID
• Work Visa Spain → - Tax implications for employees
• Teaching English in Spain → - Tax filing for teachers
• Remote Work Spain → - Beckham Law for remote workers
• Cost of Living in Spain → - Budget for taxes

FAQs About Spanish Taxes

Am I a Spanish tax resident?

You’re a Spanish tax resident if you spend 183+ days per year in Spain (January 1 - December 31), OR your economic interests are primarily in Spain, OR your spouse/minor children habitually reside in Spain. If you’re a tax resident, you’re taxed on worldwide income at progressive rates (19-47%). If not, you’re a non-resident taxed only on Spanish-sourced income at flat rates (19-24%). Track your days carefully—the 183-day threshold is strictly enforced.

What is the Beckham Law?

The Beckham Law is a special tax regime for qualifying expats allowing them to pay 15% flat tax on Spanish-sourced income (up to €600,000) and 0% on foreign income, instead of progressive rates (19-47%) on worldwide income. Eligibility: relocated to Spain for work, haven’t been Spanish tax resident in prior 5 years, apply within 6 months of obtaining residence permit. Duration: up to 6 years. Huge savings for high earners and remote workers with foreign income. Complete Beckham Law guide →

How much income tax will I pay in Spain?

Tax residents: Progressive rates on worldwide income: 19% (€0-€12,450), 24% (€12,450-€20,200), 30% (€20,200-€35,200), 37% (€35,200-€60,000), 45% (€60,000-€300,000), 47% (€300,000+). Example: €50,000 salary ≈ €11,000-€13,000 tax (22-26% effective rate). Non-residents: 24% flat on Spanish income (19% for EU residents). Beckham Law: 15% flat on Spanish income, 0% on foreign income. Use an online calculator or consult a tax advisor for your specific situation.

When do I file Spanish taxes?

Annual tax return (Modelo 100): April 1 - June 30 (following year). Example: For 2025 income, file April-June 2026. Autónomos: Quarterly prepayments (Modelo 130 IRPF + Modelo 303 VAT) due April 20, July 20, October 20, January 30, PLUS annual Modelo 100. Foreign asset declaration (Modelo 720): March 31. Late filing: 5-20% penalties plus interest. Set reminders—penalties are harsh.

Do I pay taxes in Spain on foreign income?

Tax residents: Yes, on worldwide income (Spain taxes all income from Spain and abroad). However, claim foreign tax credits for taxes paid to other countries under tax treaties (avoid double taxation). Non-residents: No, only Spanish-sourced income is taxed. Beckham Law holders: No, foreign income is exempt (only Spanish-sourced income taxed at 15%). If you’re a tax resident without Beckham Law, you must declare and pay tax on foreign salaries, rental income, dividends, etc.

What is Modelo 720 and do I need to file it?

Modelo 720 is a declaration of foreign assets held outside Spain. Required if you’re a Spanish tax resident AND have: (1) foreign bank accounts >€50,000, OR (2) foreign securities/investments >€50,000, OR (3) foreign real estate (any value) >€50,000. Deadline: March 31 annually. Penalty for non-compliance: €100,000 or 150% of asset value—one of Spain’s harshest penalties. File if you meet thresholds. Consult tax advisor if uncertain.

How do I avoid double taxation on foreign income?

Spain has tax treaties with 90+ countries (US, UK, Canada, Germany, France, etc.) to prevent double taxation. Two methods: (1) Foreign tax credit: Deduct foreign taxes paid from Spanish tax owed. (2) Tax exemption: Exempt foreign income under treaty provisions. When filing Modelo 100, declare foreign income and claim credits for foreign taxes paid. Attach proof of foreign tax payments. Tax advisors handle this routinely—hire one if you have significant foreign income (€10,000+/year).

Can I get a tax refund in Spain?

Yes, if excess tax was withheld from your salary or you overpaid quarterly prepayments (autónomos). How: File Modelo 100 (April-June), calculate actual tax owed, subtract withholdings/prepayments. If you overpaid, request refund (provide Spanish IBAN). Processing: 3-6 months. Common reasons for refunds: Single employer withholding too much, eligible deductions not applied by employer, first-year workers (part-year income). Even if not required to file, file if you’re owed a refund.

Do autónomos pay different taxes?

Yes, autónomos (self-employed) have unique obligations: (1) Monthly Social Security: €80/month (year 1), €294/month (year 2), then income-based (€317-€600/month). (2) Quarterly income tax prepayments (Modelo 130): 20% of net profit, due Apr 20, Jul 20, Oct 20, Jan 30. (3) Quarterly VAT (Modelo 303): 21% collected minus paid, same deadlines. (4) Annual tax return (Modelo 100): Like employees, April-June. Most autónomos hire accountants (€100-€250/month) to handle filings. Complete autónomo guide →

What happens if I don’t file Spanish taxes?

Consequences: (1) Late filing penalties: 5-20% of tax owed depending on delay. (2) Tax fraud investigation if deliberate non-filing (penalties up to 150% of unpaid tax). (3) Inability to renew residence permits (require up-to-date tax filings). (4) Bank account freezes (authorities can embargo accounts for unpaid taxes). (5) Criminal charges if fraud exceeds €120,000. Solution: File late returns ASAP (lower penalties if voluntary). Hire tax advisor to regularize your situation. Spain is aggressive on tax enforcement—don’t ignore filing obligations.