Spain

Spain is not a tax haven. Its top income tax rates are among the highest in Europe, several regions levy a wealth tax, and the tax authority is well organised. So why is it on this list?

Because Spain has one of Europe’s best-known special regimes for newcomers – the Beckham law – and since 2023 it’s no longer just for footballers and executives. Remote workers on the digital nomad visa and qualifying entrepreneurs can use it too. For six years, you’re taxed like a non-resident: 24% flat on Spanish work income, and most foreign income stays outside the Spanish tax net.

Add sunshine, food, the EU, the euro and Schengen, and you get a very different picture of Spain. This guide covers how it works as of 2026.

How the Spanish tax system works

Spain taxes residents on their worldwide income at progressive rates. Part of personal income tax is set by the state and part by the autonomous communities, so your region matters.

Tax residency

You are Spanish tax resident if you spend more than 183 days a year in Spain, or if your main business or economic interests are there. There is also a presumption of residence if your spouse and minor children live in Spain.

The Beckham regime (special regime for inbound workers)

Officially, it’s the régimen especial de trabajadores desplazados. It lets people who become Spanish tax resident opt to be taxed under non-resident rules.

What it does

• Employment income is taxed at a flat 24% up to €600,000 a year, and 47% above that.
• Other Spanish-source income (dividends, interest, capital gains) is taxed at the non-resident rates for savings income.
• Foreign-source income – foreign dividends, interest and capital gains – is generally not taxed in Spain.
• Wealth tax applies only to assets located in Spain.

How long

The year you become tax resident plus the following five years – six tax years in total.

Who qualifies (after the 2023 Startups Law)

Law 28/2022, the Startups Law, widened the regime from 1 January 2023:

• Non-residence period shortened. You must not have been Spanish tax resident in the previous five years (it used to be ten).
• Employees who move to Spain for a job with a Spanish employer, or are posted by a foreign employer.
• Remote workers who move to Spain on the international telework (digital nomad) visa.
• Company directors, subject to shareholding limits for some types of companies.
• Entrepreneurs whose business activity qualifies as innovative under the Startups Law.
• Highly qualified professionals providing services to startups or carrying out training, research or development activities.
• Family members (spouse and children) can, under conditions, also join the regime.

You must apply within six months of registering with Spanish social security (or starting activity), using Modelo 149. Miss the deadline and the door closes.

Worked example: €120,000 salary

The normal-regime figure is a rough range, not a calculation – deductions, social security and your region move it. The point stands: for higher earners, the Beckham regime is a substantial saving.

Wealth tax and the solidarity tax

Spain’s wealth tax is a national tax whose rules the regions can modify – and many do. Madrid and Andalusia, for example, grant a 100% relief. Other regions tax net wealth above an exempt amount at progressive rates.

In 2022, Spain introduced the temporary solidarity tax on large fortunes as a national top-up, which has since been extended. It applies to net wealth above €3 million, at 1.7% to 3.5%, with a credit for regional wealth tax paid. So even in regions with full wealth tax relief, very wealthy residents may still pay.

Under the Beckham regime, both only apply to assets located in Spain.

Setting up a company in Spain

The standard vehicle is the Sociedad Limitada (SL). Since the 2022 “Crea y Crece” law, the minimum share capital is just €1, though there are conditions until capital reaches €3,000.

• Formation. Name certificate, bank deposit, notarial deed, registration with the Mercantile Registry and a tax ID (NIF). Online formation is possible, but in practice many founders use a gestoría (local administrative agency). Expect one to four weeks.
• Costs. Notary and registry fees plus professional help typically range from several hundred to a couple of thousand euros for a simple SL.
• Running costs. Monthly or quarterly VAT and tax filings, annual accounts and the corporate tax return. A gestoría usually charges a manageable monthly fee for a small company.

Corporate tax

The standard rate is 25%. Newly incorporated companies pay 15% in the first tax period with a positive tax base and the following one. Reduced rates for smaller companies are being phased in under recent reforms; check the rate for your company’s size and year.

Dividends paid to non-residents are subject to 19% withholding tax, reduced by tax treaties or exempt under the EU Parent-Subsidiary Directive where it applies.

Autónomo

Many freelancers don’t form a company at all and register as self-employed (autónomo). Social security contributions are income-based, and new autónomos get a reduced flat contribution in their first year. If you’re on the Beckham regime, check carefully how your self-employed income is treated.

Residency options

EU, EEA and Swiss citizens

You can move freely. After arriving, you register with the foreigners’ registry and get a registration certificate and an NIE (foreigner identification number). You’ll need to show employment, self-employment or sufficient funds and health insurance.

Digital nomad visa (international telework)

For non-EU nationals who work remotely:

• Employees of foreign companies, or freelancers with mainly foreign clients (Spanish clients up to 20% of work are allowed).
• Income of at least 200% of the Spanish minimum wage – around €2,800–€2,900 a month in 2026 – with higher amounts for family members.
• Qualifications or at least three years of relevant experience.
• Relationship with the employer or clients of at least three months before applying.

The visa gives you residence and, importantly, access to the Beckham regime.

Non-lucrative visa

For non-EU nationals who live on passive income or savings and don’t work in Spain. It requires significant financial means and doesn’t allow work in Spain.

What about the golden visa?

Spain’s golden visa – residence through a €500,000 property purchase or other investments – was abolished by Organic Law 1/2025, with effect from 3 April 2025. Investments made after that date no longer qualify. Permits granted earlier can be renewed under transitional rules.

Banking

Spanish banks are large, modern and part of the eurozone system. Opening an account as a resident with an NIE is straightforward. Non-residents can open accounts too, often with higher fees. Many newcomers start with an EU neobank and add a Spanish bank for local direct debits, rent and taxes.

Living in Spain

The good

• Quality of life. Climate, food, culture and a relaxed pace.
• Choice. Big cities (Madrid, Barcelona, Valencia, Málaga), islands and quiet coastal towns.
• Healthcare. A strong public system plus affordable private insurance.
• Connectivity. Excellent high-speed rail and flights across Europe.
• International community. Especially in Málaga, Valencia, Barcelona and the islands.

The less good

• Bureaucracy. Appointments, documents, repeat visits. A good gestoría is worth it.
• Rents. Rising fast in the popular cities and coastal areas.
• Tax after year six. Back to normal rates and worldwide income.
• Foreign asset reporting. Regular residents must report foreign assets above certain thresholds (Modelo 720).
• Summer heat. Inland Spain in July is not for the faint-hearted.

Key considerations

• Region matters. Income tax scales, wealth tax and inheritance tax all differ between autonomous communities.
• Plan the six years. What happens in year seven? Many people use the regime years to plan what comes next.
• Beckham is not always better. If your income is mostly low or from Spanish sources, the normal regime with deductions can be cheaper. Run the numbers.
• Your company abroad. If you move to Spain and keep running a foreign company, it may become Spanish tax resident through management.

Who Spain suits – and who it doesn’t

Spain works well for

• High-earning employees and remote workers who qualify for the Beckham regime.
• Non-EU remote workers who want an EU base via the digital nomad visa.
• Founders of innovative startups who can combine the regime with the 15% startup rate.
• Anyone who values lifestyle and is happy to pay for it after the special regime ends.

Spain is probably not for you if

• You want low taxes for the long term. After six years, normal rates apply – consider Cyprus, Bulgaria or Dubai.
• You wanted the golden visa. It’s gone. Portugal and others have alternatives.
• You hate paperwork. Spanish administration takes patience.

Compare Spain with its neighbours in the country comparison, or try the tax calculator.

Rates and rules in this guide were checked in September 2026. This is general information, not tax or legal advice – get your specific situation reviewed by a qualified advisor before you act.

Sources

• Agencia Tributaria
• BOE – Law 28/2022 on startups
• BOE – Organic Law 1/2025
• Ministry of Inclusion, Social Security and Migration
• PwC Worldwide Tax Summaries – Spain