Spain’s Personal Income Tax (IRPF — Impuesto sobre la Renta de las Personas Físicas) has two parts: a general base for earned income and a savings base for investment income. The tax is split between the national government and your Autonomous Community (region), which is why total rates vary depending on where you live.
General Tax Brackets (National Portion, 2026)
| Taxable Income (€) | National Rate (%) |
| Up to €12,450 | 9.50% |
| €12,450 – €20,200 | 12.00% |
| €20,200 – €35,200 | 15.00% |
| €35,200 – €60,000 | 18.50% |
| €60,000 – €300,000 | 22.50% |
| Over €300,000 | 24.50% |
Add the regional rate to get your total. In Madrid, the combined top marginal rate is approximately 45%. In Catalonia or Valencia, it can exceed 50%.
Savings Tax Brackets
Investment income (dividends, interest, capital gains) is taxed separately at lower rates:
- First €6,000: 19%
- €6,000 to €50,000: 21%
- €50,000 to €200,000: 23%
- €200,000 to €300,000: 27%
- Over €300,000: 28%
Deductions
National Deductions
- Personal allowance: Approximately €5,550 minimum, higher for those over 65 or 75. Additional allowances for children and dependent elderly parents.
- Pension plans: Contributions up to €1,500 are deductible. Employer pension plans can add up to €8,500 more.
- Social Security: Employee contributions are fully deductible.
- Mortgage deduction: Available only for homes purchased before January 1, 2013.
Regional Deductions
Each Autonomous Community offers its own deductions. Common ones include:
- Rent: Deductions for young people or lower-income tenants in some regions.
- Education: Deductions for language classes, school supplies, or private school fees in some regions.
- Startup investments: Tax credits of 30-50% in some regions for investing in new companies.
- Birth/adoption: Direct credits for each child born or adopted.
The Beckham Law
Foreign workers who have not been Spanish tax residents in the previous five years can opt for the special non-resident tax regime (Beckham Law). This provides a flat 24% rate on Spanish-sourced income up to €600,000, with foreign income not taxed in Spain. The regime lasts for six years (year of arrival plus five additional years). See our full guide on the Beckham Law.
Filing
The tax year follows the calendar year. The filing period (Campaña de Renta) typically runs from April to June of the following year. If you hold foreign assets exceeding €50,000 (bank accounts, property, crypto), you must file Model 720. Penalties for non-compliance are significant.
Spain’s tax system is complex due to the regional variations. Where you live matters as much as how much you earn. If you are relocating to Spain, compare the total tax rates across different Autonomous Communities and check which regional deductions apply to your situation.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws change frequently, and individual circumstances vary. Always consult a qualified tax advisor before making financial decisions.