When moving to Spain, buying property, investing or running a business, you must consider Spanish tax rules. You will pay Spanish tax on any property you own and other assets or investments in the country.
The amount of Spanish tax is determined by whether you are classed as a Spanish Tax Resident or non-resident, so it is essential to establish your tax residence in Spain.
Capital Gains Tax
Spanish Tax residents are liable to Capital gains (e.g., from selling real estate or shares) are generally taxed at progressive rates ranging from 19% to 28%, depending on the amount of the gain. See the Spanish Tax Office (AEAT) page for more information on calculating and paying capital gains tax.
Wealth Tax (Impuesto sobre el Patrimonio)
Spanish tax residents pay Wealth Tax on their global assets, such as real estate and investments, with rates usually between 0.2% and 3.5%, depending on regional regulations and deductions. Please review the details of this tax on the Spanish Tax Office (AEAT)page.
Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones) Inheritance and gift tax obligations in Spain depend on the region and the relationship between donor and beneficiary. Rates, allowances, and exemptions can vary significantly. Refer to the Spanish Tax Office (AEAT) page for up-to-date information.
Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad a las Grandes Fortunas)
This temporary tax applies to Spanish Tax residents with net wealth exceeding €3 million. The tax rates follow a progressive scale and may vary by region, complementing existing wealth tax obligations. Please consult the Spanish Tax Office (AEAT) page for the latest guidance.
Spanish income tax and non-residence rules must be considered carefully when buying property or investing in Spain.
There are free Spanish Non-Resident Tax Calculators online, but please be wary about relying on them to calculate the tax you think you need to pay. There are many complex variables regarding your tax residency status, the type of income you receive, the type of property you own, etc., so the results from these calculators can be inaccurate. The fact that you used an online calculator will not help you if Spanish tax officials issue you a fine for an inaccurate tax declaration.
For peace of mind and to avoid any nasty surprises, it is always worth getting professional advice on your Spanish residency status and the taxes due. Tax and legal professionals may also be able to suggest tax mitigation steps that can help you legitimately reduce your tax bill.
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The Beckham Rule is a special Spanish tax regime for expatriates. It allows qualifying individuals to pay a flat tax rate on employment income and to be treated as non-residents for certain other tax purposes.
Any individual who moves to Spain for professional reasons and has not been tax resident in Spain during the five previous tax years may apply. This includes employees, remote workers, directors, and certain entrepreneurs.
Qualifying income is taxed at a flat rate of 24% up to €600,000. Income exceeding that threshold is taxed at 47%.
You must not have been considered a tax resident in Spain during the five tax years immediately preceding your relocation.
Your move to Spain must be for genuine employment or professional reasons, such as:
Holding an employment contract with a Spanish or foreign companyWorking remotely from Spain under a Digital Nomad Visa
Acting as a highly qualified professional or entrepreneur conducting a business activity in Spain
Serving as a director of a company, provided that—if the company is asset-holding—you hold no more than 25% of its shares
You must apply for the regime within six months of registering with the Spanish Social Security system (Seguridad Social). This deadline is strictly enforced.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
Under the Beckham Rule, all employment and professional income is taxable in Spain, regardless of where it is earned. However, income from non-Spanish sources—such as interest, dividends, investment income, and capital gains—is not subject to Spanish tax.
You are only subject to Wealth Tax and Solidarity Tax on assets located in Spain. Foreign assets are excluded from the Spanish tax base during the six-year period.
Your spouse and dependent children under 25 (or of any age if legally disabled) may also benefit from the regime, provided they meet the requirements and file separate applications.
If you move to Spain to act as a director, you may apply regardless of your shareholding. However, if the company is an asset-holding entity, your ownership must not exceed 25%.
If you cease to be tax resident in Spain before completing the six-year period, you will automatically lose the benefits of the regime. From that point onward, you will be taxed under the general Spanish tax system, which includes progressive rates and worldwide income taxation.
Del Canto Chambers has a specialised team ready and eager to support you to apply for Spanish nationality. If you are interested in applying and would like to know if you are eligible, we would be delighted to help you.
Del Canto Chambers specialists are constantly up to date with new legislative changes and aware of any Spanish tax and legal implications. Contact our Spanish legal and tax specialists to find out the best tax planning and corporate structures in your circumstances.
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