Spain’s tax system can be complex for expats, investors, and retirees, but it’s manageable with the right guidance. This complete 2026 guide breaks down everything you need to know about taxes in Andalusia, from asset and income taxes, to double taxation agreements, digital nomad or retirement tax conditions, crypto taxes and social security.
Whether you’re relocating, retiring, or investing in Spanish real estate, understanding how taxes work in 2026 is essential, especially for non-residents, expats, and digital nomads navigating Spain’s evolving tax landscape.
Spain’s property market draws international buyers for good reason: the climate, lifestyle, infrastructure, and long-term value are genuinely compelling. But alongside the appeal comes a tax system that works quite differently from what most buyers expect. Getting clarity on this early isn’t just advisable; it’s one of the most practical steps you can take before making a decision about moving or buying property in Spain.
With over 20 years in Marbella’s property market, one of the questions we hear most often is: what will I actually pay in tax? This guide gives you a clear, honest answer, covering everything from the costs you’ll face when you buy to what owning, renting, and eventually selling will involve.
Advisory notice. MPDunne is a real estate advisory firm, not a tax or legal practice. This guide is for general informational purposes only. Your specific position will depend on your residency status, nationality, income, and applicable double-taxation treaties. Always seek advice from a qualified international tax professional before making decisions.
First of all, you must understand how Spain defines tax residency, because the difference between being a resident and a non-resident for tax purposes shapes almost every other obligation in this guide.
You are normally considered a Spanish tax resident if you spend more than 183 days in Spain during a calendar year, or if Spain is the centre of your main economic or personal interests. This is assessed annually and is entirely separate from your immigration or visa status.
Owning property in Spain, or holding a residency visa, does not automatically make you a tax resident. Equally, spending significant time in Spain without realising you have crossed the 183-day threshold can trigger residency, and with it, an obligation to declare worldwide income.
If you are splitting time between Spain and other countries, tracking your days is one of the simplest and most important things you can do. Read our Guide to Living in Spain for more details.
Spanish tax residents pay IRPF on all worldwide income, not just income earned in Spain. This includes employment income, pensions, rental income, dividends, and capital gains.
The tax is progressive, with rates set partly nationally and partly by each autonomous community. The combined rates in Andalucía vary between 19% up to €12,450, then 24% for the portion up to €20,200, 30% for the portion up to €35,200, 37% for the portion up to €60,000, 45% for the portion up to €300,000, and 47% beyond that. The table below shows the rates in January 2026 for general income and other savings, dividends, or assets.
Residents receive personal allowances before tax is calculated: €5,550 for those under 65, rising to €6,700 at age 65, and €8,100 at 75. Additional allowances may apply for dependants.
Income from savings, including interest, dividends, and gains on the disposal of assets, is taxed separately at lower rates ranging from 19% to 30%, depending on the amount.
Spain offers a favourable tax regime for certain individuals relocating to the country for professional reasons, commonly known as the Beckham Law. Ideal for foreign professionals employed in Spain or working remotely for non-Spanish companies, this scheme allows tax planning with reduced exposure to global income.
Under this regime, qualifying individuals can elect to be taxed as non-residents for up to six years, meaning they pay tax only on Spanish-source employment income, at a flat 24% rate (up to €600,000/year). Worldwide income and assets are excluded, and in many cases, wealth tax and overseas asset declarations (Modelo 720) are also not required.
Originally designed for executives and highly qualified professionals, the Beckham Law has now been extended under Spain’s Startup Law to cover eligible remote workers and digital nomads. If you are moving to Spain with a Digital Nomad Visa, you may be able to apply this tax regime, a significant benefit for international freelancers, remote employees, and online entrepreneurs.
The eligibility conditions are detailed and must be carefully assessed. As a start, you must not have been a Spanish tax resident for the five preceding tax years, and you must apply within a set timeframe after establishing residency. Incorrect application can result in retroactive tax liabilities, so as with all taxation matters, professional guidance is essential if you’re considering working remotely from Spain or relocating under this scheme.
Alternatively, non-residents for tax purposes pay IRNR only on Spanish-source income. The rates are:
Staying a non-resident can be straightforward and tax-efficient for property owners who earn most of their income elsewhere. Spanish obligations still apply, however, to Spanish property, assets or income. Non-tax residents of Spain who own property or other investments, or earn income here, must declare this income annually using Modelo 210, Spain’s tax form for non-resident income (IRNR). This includes:
For most property owners, Modelo 210 must be submitted by 31 December each year, or quarterly for rental properties. You can file it online, but many non-residents appoint a fiscal representative, or gestor, to handle it on their behalf, especially when claiming deductions.
Note that non-EU residents may need to take extra steps to claim deductions, following the July 2025 ruling. Always check with your tax adviser to ensure your filing reflects the most up-to-date rules.
Crypto assets are fully taxable in Spain with monitoring tools in place, so they should not be overlooked in tax planning, especially by high-net-worth individuals and digital entrepreneurs.
If you are a Spanish tax resident, any gains from selling or exchanging cryptocurrency are treated as capital gains and taxed at progressive savings tax rates, currently ranging from 19% to 28% (2026 brackets). If you are a non-resident, only Spanish-source crypto income (such as from a Spanish-based business) would generally be taxable.
Additionally:
Given the evolving rules and strict penalties for non-disclosure, crypto tax in Spain is an area where specialist advice is strongly advised, particularly for investors with significant holdings or cross-border activity.
For retirees, understanding which pensions are taxable in Spain and which are exempt under treaties (e.g. UK, US, Germany) is critical to avoid double taxation or unnecessary filings. If you become a Spanish tax resident, most foreign pension income is taxable in Spain under the IRPF system. This includes private pensions (like UK personal pensions or U.S. IRAs), which are taxed at progressive rates after applying Spain’s age-based personal allowances: €6,700 if over 65 and €8,100 if over 75. This includes:
It’s vital that all Spanish residents declare this income on their IRPF return, as it affects the tax rate applied to other income, consider relevant double taxation treaties and obligations, and seek specialised legal and tax advice.
For retirees settling in Andalucía, regional perks include that Andalucía offers one of Spain’s lowest Property Transfer Tax rates at a flat 7% for resale properties and €1 million inheritance tax exemptions there for spouses and children, making it one of the most favourable regions for retirement in Spain.
Social security in Spain is distinct from income tax but just as important for expats who plan to live and work here. If you are employed by a Spanish company, around 6.5% of your gross salary is deducted, while your employer pays an additional 29.9%. These contributions give you access to Spain’s public healthcare, pensions, and unemployment benefits.
If you are a self-employed freelancer (registered as an autónomo), you are required to pay a monthly contribution, approximately €200–€590/month in 2026, which increases with your income. This ensures coverage for healthcare, maternity, and retirement, but the obligation applies regardless of earnings.
Note that social security obligations are separate from tax residency. Even if you are a non-tax resident, you may still need to contribute if you work or operate a business in Spain. Spain has agreements with countries like the U.S. and the UK, which may affect how your contributions are recognised, especially for pension planning.
Spain has double taxation agreements (DTAs) with over 90 countries, including the United States, the United Kingdom, France, Germany, the Netherlands, and most EU and OECD nations. These treaties are designed to ensure that the same income is not taxed twice, first in Spain where it arises, and again in your home country where you may be tax resident.
For international property buyers, this matters because you may need to declare Spanish income (like rental profits or capital gains) in both countries, but the treaty often allows you to offset tax paid in Spain against your home-country liability.
These agreements also help clarify who gets taxing rights over different types of income, how residency is determined, and how relief is calculated. However, the interaction between the two systems can be complex and often depends on how income is earned, your exact tax residence, and local filing rules, so personalised qualified advice is always essential.
To give an example, residents of treaty countries:
Importantly, tax treaties do not exempt you from filing in either country; they simply define how relief is applied. You are still responsible for full reporting in both jurisdictions.
Spain has treaties in place with most key buying markets. You can view the full list of countries with DTAs on the Agencia Tributaria website or your home country’s tax authority. Remember, how a treaty applies depends on many factors, so you should always seek professional cross-border tax advice before establishing Spanish residency or earning income in Spain.
When buying property in Spain, tax is applied at the point of purchase, and the amount depends on whether you are buying a resale property or a new build from a developer. This is 7% ITP (Impuesto sobre Transmisiones Patrimoniales) for resale properties, plus 10% VAT and AJD stamp duty, which equates to 11.2% total for new properties in Andalucía.
Beyond the headline tax, you will also need to budget for notary fees (typically €800–€1,500), legal representation (around 1% of the purchase price, plus VAT), and Land Registry costs (roughly €500–€1,000). In total, expect to add 10–13% to the purchase price across all taxes and completion costs. Read our Property Buyers Guide for full details relevant to the Costa del Sol.
Note that Spanish tax authorities may compare your declared purchase price to an official reference value (valor de referencia) and may use that value instead. A qualified lawyer can check this before you complete.
Once you own a property, you need to pay annual municipal tax called IBI (Impuesto sobre Bienes Inmuebles) to the local town hall, whether you are a resident or not. Rates are set by each municipality and typically range from 0.4% to 1.1% of the property’s cadastral value. This is one of the more modest ongoing costs of ownership in Spain.
Non-residents owning property in Spain, and residents with second homes, who do not rent their property are still liable for imputed income tax, which is deemed rental income based on the property’s cadastral value. The calculation uses 1.1% of the cadastral value if the property has been revalued within the last ten years, or 2% if it has not. This amount is then taxed at 19% (EU/EEA) or 24% (non-EU) and declared via Modelo 210.
For example, if your property has a cadastral value of €150,000 and has been recently revalued, the imputed income is €1,650. Your annual tax on that would be €313.50 if you are an EU/EEA resident, or €396 if you are non-EU. These amounts are relatively modest, but they apply even if the property sits empty all year, and the obligation to file exists regardless.
A useful point for buyers in Marbella and surrounding areas: cadastral values in Spain are typically lower than market values, sometimes significantly so. This means the imputed income calculation will generally be well below what the property could actually earn as a rental.
Rental income from Spanish property is taxable in Spain, regardless of where the rent is paid or where you live. Filing is now annual (previously quarterly) via Modelo 210.
For EU/EEA residents, allowable deductions, including mortgage interest, community fees, IBI, insurance, maintenance, and property management costs, are applied before tax is calculated, and the rate is 19% on the resulting net income.
For non-EU residents, the headline rate remains 24%, with a landmark July 2025 ruling clarifying that non-EU owners can claim the same deductions as EU owners. Read more details in our Guide to Spanish Rental Property Taxes.
For non-resident investors seeking rental yield or capital appreciation, Spain’s flat 19–24% tax on rental income and 19% Capital Gains Tax are key costs to model against ROI.
If you own property or other assets in Spain, or if you are a Spanish tax resident, you must also report your total assets held in Spain and overseas, regardless of any double taxation treaty with your home country.
If you own assets in Spain, the wealth tax (Impuesto sobre el Patrimonio) applies annually to the net value of personal assets as at 31 December. For non-residents, only assets situated in Spain are in scope. The general allowance for non-residents is €700,000. For residents, the allowance is between €500,000 and €800,000, depending on the autonomous community, plus an additional €300,000 exemption for a primary residence in Spain.
Here is where regional variation matters. Andalucía offers a 100% regional deduction on wealth tax. In practice, this means residents of Andalucía currently pay no regional wealth tax, regardless of their asset value.
However, in 2022, Spain introduced the Solidarity Tax (Impuesto de Solidaridad a las Grandes Fortunas), from which Wealth Tax is deducted. Although originally introduced temporarily, it has since been confirmed as permanent and applies to individuals with net asset value exceeding €3 million, taxed at 1.7% up to €5 million, 2.1% up to €10 million, and 3.5% thereafter.
The Solidarity Tax operates at the national level and bypasses regional wealth tax deductions. So while an Andalucía-based owner pays no regional wealth tax, the Solidarity Tax still applies if their net assets exceed €3 million. Any regional wealth tax already paid is credited against the Solidarity Tax, but in Andalucía, where that payment is effectively zero, the full Solidarity Tax becomes due.
If you are a Spanish tax resident, you are also required to declare any assets held outside Spain that exceed €50,000 in total value every year. This covers three categories: bank accounts, securities and investments, and real estate held abroad. The declaration is made annually via Modelo 720, with a deadline of 31 March.
Since this is a disclosure requirement, you must submit even if no tax is owed, and it’s taken seriously. Penalties for non-compliance are significant, despite being reduced following a European Court of Justice ruling in 2022 that found certain aspects of Spain’s original penalty regime disproportionate. Anyone becoming a resident in Spain should treat Modelo 720 as a priority, not an afterthought.
When a non-resident sells Spanish property, capital gains tax applies at a flat rate of 19%. The gain is calculated as the difference between the original acquisition cost, including purchase taxes and documented expenses, and the final sale price.
For Spanish tax residents, exemptions may apply: those over 65 who sell their primary residence (where they have lived for at least three years) may be fully exempt from capital gains tax. Residents of any age may also defer or reduce their liability by reinvesting the full proceeds in a new primary residence within two years. These exemptions are generally not available to non-residents, though EU/EEA non-residents may qualify for the reinvestment exemption under certain conditions. Professional advice is essential to confirm eligibility.
To facilitate collection, the buyer is required to withhold 3% of the sale price and pay it directly to the Spanish tax authorities on the seller’s behalf. This is not an additional tax. It is an advance payment against the seller’s final capital gains liability. If the actual tax owed is less than the amount withheld, the seller can claim a refund via Modelo 210.
In addition to the national capital gains tax, the local municipality may also levy Plusvalía Municipal, a tax based on the increase in the property’s land value during the period of ownership. This is a seller’s tax, assessed at the local level, and the amount varies depending on location and length of ownership, but it is capped nationally at 30%.
You can read more details about selling property in Marbella or Spain in MPDunne’s Property Seller’s Guide.
Spain’s tax framework is national, but the practical implications can differ depending on where you are based at home. The following outlines the key points for the nationalities most commonly represented among our clients.
As a U.S. citizen, you are taxed on your worldwide income, even if you live abroad or qualify for Spanish residency. This means Spanish-source income, such as rental income or capital gains, must typically be declared in both Spain and the U.S., despite double taxation agreements.
U.S. tax compliance in a cross-border context is highly individual, so you should always consult a qualified U.S.–Spain tax adviser to ensure you are meeting both sets of obligations efficiently. You will need a visa to stay in Spain beyond 90 days, and you should monitor your days carefully if you don’t want to become a Spanish tax resident.
Following Brexit, UK nationals are treated as non-EU nationals for Spanish tax purposes. That means Spanish rental income and capital gains may be taxable in both countries, but the UK–Spain Double Taxation Convention allows for relief to prevent double taxation in most cases.
Even if you hold a visa to stay in Spain, this does not automatically make you a tax resident. You’ll need to monitor your time in Spain carefully; 183 days or more in a tax year typically triggers tax residency and may require full Spanish reporting. As with any cross-border tax matter, personalised professional advice is essential, particularly if your income or asset structure is complex.
Buyers from Sweden, Norway, Denmark, Finland, the Netherlands, or France, for example, will generally be familiar with high-compliance tax systems, but the Spanish position still requires separate attention.
As an EU citizen, you don’t need a Spanish visa, but you need to register as a resident if you stay beyond 90 days and monitor your time in Spain if you don’t want to become a tax resident.
As discussed above, irrespective of your resident status, you must pay tax on assets held in Spain, and may need to pay tax at home as well. As always, you are advised to seek personalised professional advice and carefully monitor your situation in Spain to avoid accidental residency.
Filing taxes as a foreigner in Spain is rarely straightforward; your obligations depend on residency status, income type, and treaty rules. Whether you’re buying property, earning rental income, or retiring, specialist advice can help you avoid costly mistakes.
As such, it is essential to obtain tax-specific and legal advice from an experienced and appropriate professional throughout the entire process. We can recommend trusted professionals across Marbella and the Costa del Sol.
Tax planning is not something to bolt on after you have chosen to live or buy property in Spain. In our experience, it is one of the most valuable conversations to have early, ideally before you begin looking to move or invest.
If you are considering property in Marbella, Estepona, or Benahavís, or anywhere along the Costa del Sol, we will happily point you towards the right tax and legal professionals as part of the process.
Remember, this guide is for general informational purposes only. MPDunne Properties & Hamptons International does not provide tax, legal, or financial advice. Tax treatment in Spain depends on individual circumstances, residency status, nationality, and applicable double taxation treaties. Readers should always consult appropriately qualified and certified tax or legal professionals before making decisions.
Buying property or living part-time in Spain? Here are the most common questions foreigners ask, from Modelo 210 to crypto taxes, updated for 2026.
No. Owning a home does not automatically trigger tax residency. You become a tax resident if you spend more than 183 days in Spain in a calendar year or have your main economic interests based there.
For resale property, the purchase tax (ITP) is 7%. For new builds, buyers pay 10% VAT (IVA) plus 1.2% stamp duty (AJD), for a total of 11.2%. Legal, notary, and registry costs typically add another 2–3%.
Yes. If you own a vacant or second home in Spain as a non-resident, you’re liable for imputed income tax based on the property’s cadastral value. This must be declared annually via Modelo 210.
Modelo 210 is the tax form for non-residents earning Spanish income, including rent, imputed income, or capital gains. It’s filed annually or quarterly for rental properties.
A landmark ruling in July 2025 allowed non-EU landlords to deduct rental expenses, rights previously limited to EU/EEA residents. The 24% tax rate remains, but deductions are now accessible, though implementation is still evolving.
Spanish tax residents must file Modelo 720 if they hold more than €50,000 in combined value across overseas bank accounts, investments, or real estate. The deadline is 31 March each year.
Not at the regional level: Andalucía offers a 100% deduction. But if your net assets exceed €3 million, the national Solidarity Tax still applies, even for non-residents.
Non-residents pay tax on Spanish-source income:
These rates apply to rent, imputed income, and certain capital gains.
Residents pay capital gains tax on crypto at rates of 19% to 30%, depending on the amount. Non-residents are only taxed on Spanish-source crypto income. You may need to report holdings on Modelo 720 or Modelo 721.
Yes. Remote workers on Spain’s Digital Nomad Visa can apply for the Beckham regime, paying a flat 24% on Spanish-source income for up to six years, with no wealth tax or foreign asset declarations in most cases.
You’ll pay 19% capital gains tax. The buyer withholds 3% of the sale price as an advance. If overpaid, you can claim a refund via Modelo 210. Municipal Plusvalía tax may also apply based on land value increase.
Yes, if you are a non-resident with tax obligations (e.g. owning or renting out property), you must appoint a fiscal representative to liaise with Spanish authorities on your behalf.
Contact MPDunne for professional real estate services in the Costa del Sol area.
Melinda Rendina Content Writer & Marketing Creator
Melinda is an experienced writer specialising in real estate, urban planning, lifestyle, architecture and design. A seasoned Marbella resident, she holds an Undergraduate Degree in Social Science with Honours in Politics, and a Masters degree in Urban Planning.
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