Spain Taxes for Expats 2026: Income Tax, Beckham Law, Wealth Tax and US Pensions

Are taxes in Spain high? It depends on what kind of income you have, which region you live in and whether you qualify for the Beckham law. This guide explains when Americans become Spanish tax residents, the 2026 income tax scale, the Beckham law flat tax for remote workers and employees, wealth and inheritance tax by region, the foreign asset declaration, and how the US-Spain tax treaty treats Social Security, pensions, IRA and 401(k) withdrawals and investment income.

Key takeaways

• You become a Spanish tax resident if you spend 183 days or more in Spain in a calendar year, and you are then taxed on worldwide income.
• Income tax is progressive, set jointly by the state and the region, with top rates of about 47 to 50 percent.
• The Beckham law taxes Spanish employment income at a flat 24 percent up to €600,000 and leaves most foreign income outside Spanish tax for six years.
• Wealth tax and inheritance tax vary enormously by region: Madrid and Andalusia largely exempt them, Catalonia does not.
• U.S. Social Security is generally taxed only by the United States under the treaty; private pensions, IRA withdrawals and investment income are generally taxed in Spain with a credit for U.S. tax.

Part 1: When you become a Spanish tax resident

You are a tax resident of Spain for a calendar year if any of the following applies:

• You spend 183 days or more in Spain during the year (January to December).
• The centre of your economic activities or interests is in Spain.
• Your spouse and minor children live in Spain, which creates a presumption of residence.

Residents declare worldwide income. In a year when you are not resident, only Spanish-source income is taxed, generally at 24 percent for non-EU residents. Arriving in the second half of the year usually means you are a non-resident for that year, which gives you time to plan.

Part 2: Income tax (IRPF) rates in 2026

Income tax is levied half by the state and half by the region, so rates differ by where you live. Approximate combined rates:

• Up to €12,450: about 19 percent.
• €12,450 to €20,200: about 24 percent.
• €20,200 to €35,200: about 30 percent.
• €35,200 to €60,000: about 37 percent.
• €60,000 to €300,000: about 45 percent.
• Over €300,000: about 47 percent, around 50 percent in Catalonia.

Employees get a work allowance of about €2,000 and a personal allowance of €5,550, so a single person earning €40,000 pays an effective rate in the low twenties. Self-employed workers (autónomos) also pay monthly social security contributions of roughly €200 to €600 depending on income. Savings income, meaning interest, dividends and capital gains, is taxed separately at 19 to 30 percent (the top rate applies above €300,000).

Part 3: The Beckham law

The special regime for inbound workers lets qualifying newcomers pay a flat 24 percent on Spanish employment and professional income up to €600,000 (47 percent above), excludes most foreign-source income from Spanish tax, limits wealth tax to Spanish assets and removes the Modelo 720 obligation, for the year of arrival plus five more years. You qualify if you were not a Spanish tax resident in the previous five years and you move for an employment contract, remote work for a foreign employer including under the digital nomad visa, a directorship, or a recognised entrepreneurial or highly qualified activity. You must apply within six months of starting. See our full guide to the Beckham law in Spain.

Part 4: Wealth tax and inheritance tax

Wealth tax (Impuesto sobre el Patrimonio) is an annual tax of about 0.2 to 3.5 percent on net assets, with regional allowances. Madrid and Andalusia exempt it entirely at regional level, but since 2023 the national solidarity tax on large fortunes applies everywhere above €3 million of net assets. Catalonia taxes net assets above €500,000, with the main home exempt up to €300,000. Residents are assessed on worldwide assets, non-residents on Spanish assets only.

Inheritance and gift tax also varies by region: Madrid and Andalusia almost fully exempt transfers to spouses and children, while Catalonia taxes them above generous allowances. Spain has no equivalent of the U.S. estate tax exemption, so families with significant assets should plan before moving.

Part 5: The Modelo 720 foreign asset declaration

Residents must declare foreign assets, including bank accounts, securities and real estate, in each category worth more than €50,000, by 31 March each year. U.S. brokerage accounts, 401(k) and IRA balances, and your American home all count. It is an information return, not a tax, but penalties for non-filing exist. Beckham law taxpayers are exempt.

Part 6: How the US-Spain tax treaty treats American income

• Social Security benefits: generally taxable only in the United States.
• Private pensions, IRA and 401(k) withdrawals: generally taxed in Spain as resident income, with a foreign tax credit for U.S. tax paid. Roth withdrawals are a complex area and need advice.
• Dividends and interest: U.S. withholding is reduced under the treaty and the income is declared in Spain as savings income with a credit.
• U.S. rental income: taxed in the United States first and declared in Spain with a credit.
• Capital gains on your U.S. home: taxable in Spain if you sell while resident, so many people sell before moving.

Americans continue to file U.S. returns and FBAR reports. The foreign earned income exclusion and the foreign tax credit prevent most double taxation on earned income, but state taxes, Roth conversions and the timing of large sales are where planning pays off.

Part 7: Checklist before you move

• Timing of arrival: moving after 1 July usually makes you a non-resident for that year.
• Beckham law eligibility: confirm your employment or visa route qualifies before you sign anything.
• Choice of region: wealth and inheritance tax differences can be decisive for high-net-worth families.
• Sales and conversions: consider selling appreciated assets and doing Roth conversions before you become resident.
• Deadlines: Spanish income tax returns are filed April to June; the Modelo 720 is due 31 March.

Summary

For a typical employee, Spanish taxes are comparable to or somewhat higher than U.S. federal plus state taxes; for remote workers and executives who qualify for the Beckham law, they can be lower. Wealth and inheritance taxes depend heavily on the region, and the treaty keeps Social Security taxable only in the U.S. while most other income is taxed in Spain with credits. Our Barcelona team works with partner tax advisers so that your visa route and tax position are planned together before you move.

Photos: Bernard Gagnon / CC BY-SA 3.0 · Matti Blume / CC BY-SA 4.0 (Wikimedia Commons)