Question 1

How is income tax calculated in Spain in 2026?

Accepted Answer

Spain uses a progressive tax system with rates from 19% to 47% on general income. National rates: 19% up to €12,450, 24% to €20,200, 30% to €35,200, 37% to €60,000, 45% to €300,000, and 47% above €300,000. Each autonomous community (region) adds its own rates on top of national rates, so total tax varies by location. Madrid offers lowest regional rates, Valencia and Catalonia have higher rates. Savings income (dividends, interest, capital gains) taxed separately at 19-28%. Standard personal allowance €5,550, increases for dependents/disability.

Question 2

What is the Beckham Law in Spain and who qualifies?

Accepted Answer

The Beckham Law (Special Expat Tax Regime) allows qualifying foreign workers to pay flat 24% tax on Spanish-source income up to €600,000 (47% above that) for 6 years, instead of progressive rates up to 47%. Foreign income completely tax-exempt. Must not have been Spanish tax resident in prior 5 years, relocate for work with employment contract or qualifying director role, and apply within 6 months of starting work. Digital nomads with foreign employment contracts now qualify since 2023 law changes. Benefits extend to spouse and dependent children. Highly advantageous for high earners with foreign assets.

Question 3

Do digital nomads pay tax in Spain?

Accepted Answer

Digital nomads on Spain's Digital Nomad Visa become tax residents if staying 183+ days. They can apply for Beckham Law to pay flat 24% only on Spanish income, with foreign income exempt. Without Beckham Law, standard progressive rates 19-47% apply on worldwide income. Digital nomads can earn up to 20% of income from Spanish clients. Minimum income requirement €2,850-€3,024/month (200% of minimum wage) for 2026. Must have employment contract with foreign company or be self-employed. Social security contributions required unless home country has totalization agreement with Spain.

Question 4

What are social security contributions in Spain 2026?

Accepted Answer

Employees pay 6.48% social security contributions (4.7% pension, 1.55% unemployment, 0.1% training, 0.13% FOGASA). Employers pay approximately 30.65% plus variable rate for occupational accidents (1.5% for office work). Self-employed (autónomos) pay income-based contributions from €230/month to €530/month depending on net income. New autónomos get flat rate €80/month for first year. Additional solidarity contribution 1.15-1.46% applies to salaries exceeding maximum contribution base (€5,101.20/month in 2026). Minimum base €1,381.20, maximum €5,101.20 per month.

Question 5

What tax deductions can I claim in Spain?

Accepted Answer

Standard employment allowance €2,000/year, increased for relocation and disability. Social security contributions fully deductible. Union/professional fees up to €500. Legal defense costs up to €300. Self-employed can deduct business expenses: workspace, utilities, supplies, insurance, pro-rata home office, depreciation. Rental income: deduct interest, repairs, local taxes, community charges, insurance. Investment in new companies: 50% deduction up to €100,000 annual limit. Charity donations: 80% of first €250, then 40-45% of remainder up to 10% of taxable base. Regional deductions vary by autonomous community.

Question 6

When do I need to file a tax return in Spain?

Accepted Answer

Annual tax return (IRPF - Modelo 100) due April 1 - June 30 for previous year. Must file if: income exceeds €22,000 from single payer (€15,000 from multiple payers), any self-employment income, capital gains exceeding €1,600, rental income, or claiming deductions. Quarterly advance payments (Modelo 130) required for self-employed - typically 20% of net profit. Withholdings reconciled in annual return. Tax authorities send preliminary calculation (borrador) which can be confirmed or corrected electronically through Agencia Tributaria portal.

Question 7

How does Spain tax cryptocurrency in 2026?

Accepted Answer

Crypto gains taxed as savings income at progressive rates: 19% up to €6,000, 21% from €6,000-€50,000, 23% from €50,000-€200,000, 27% from €200,000-€300,000, and 28% above €300,000. Must report all crypto transactions. Mining and staking rewards taxed as general income at progressive rates. Must declare foreign crypto accounts exceeding €50,000 on Modelo 720. Crypto-to-crypto trades taxable (unlike some EU countries). Losses can offset gains. Holding period doesn't affect rates. Must report total portfolio value annually.

Question 8

What is Spain's Digital Nomad Visa and how do I qualify?

Accepted Answer

Spain's Digital Nomad Visa (International Telework Visa) launched January 2023 allows non-EU remote workers to live in Spain for up to 5 years. Requirements: minimum income €2,850-€3,024/month (€3,797 for couple, increases 25% per child), work for foreign company or be self-employed with max 20% income from Spanish clients, university degree or 3+ years experience, employer operating 1+ year, not Spanish resident in past 5 years. Initial visa 1 year, renewable for 3+2 years. Can apply for Beckham Law for 24% flat tax. Application fee €73.26. Spouse and children can join. Processing 15-45 days.

Spain Tax Calculator 2026