Personal and business taxation in Spain

Documentary position as at 21 September 2026. The reference points below concern the common regime unless stated otherwise. Income for 2025 reported in 2026 is distinguished from income and accounting periods for 2026.

1. Identifying the territory, taxpayer and year

1. A Spanish tax rate alone is not enough to determine a tax liability. Residence, the nature of the income, the person receiving it and the competent territory must first be identified. Under the common regime, the autonomous communities have powers over, among other matters, the regional component of personal income tax (IRPF), wealth tax and transfers without consideration. S01S09

2. The Basque Country and Navarre have their own foral tax regimes, governed respectively by the Concierto and the Convenio Económico. The common-regime tables in this factsheet are therefore not their tax scales. A business operating in several territories must also determine the competent tax authority and the allocation rules before calculating its tax. S10S25

3. The Canary Islands are part of Spain but fall outside the territorial scope of Spanish VAT (IVA). They have, among other measures, their own indirect tax (IGIC) and specific incentives. This distinction in indirect taxation does not mean that IRPF or corporate income tax is absent. S01S04S11S19

4. The filing campaign running from 8 April to 30 June 2026 concerned Renta and Patrimonio for 2025; the announced deadline for a return showing tax payable by direct debit was 25 June. These are not the filing dates for 2026 income. The corporate tax rates set out below depend on the year in which the accounting period begins, rather than simply the year in which the return is filed. S16S17

2. Individual residence, arrival and departure

5. Article 9 of Law 35/2006 sets out alternative tests. A person is resident if they spend more than 183 days in Spain during the calendar year, or if the main centre or base of their activities or economic interests is in Spain, directly or indirectly. A stay below the first threshold therefore does not displace the second test. S01

6. Sporadic absences count towards the number of days unless tax residence in another country is proved. A rebuttable presumption also applies where a spouse who is not legally separated and dependent minor children habitually reside in Spain under the statutory tests. Evidence of presence, accommodation, work and foreign residence must therefore be examined together. S01

7. An ordinary resident is subject to IRPF on all income, regardless of where it arises or where the payer is resident. The tax period is generally the calendar year; death is the exception provided for in article 13. Arrival during the year does not, by itself, automatically divide the year into a period of residence and a period of non-residence. S01

8. Residence in both countries under French and Spanish domestic law requires a second analysis under the treaty. Article 4 of the France–Spain treaty signed on 10 October 1995, which entered into force on 1 July 1997, examines in turn the permanent home, centre of vital interests, habitual abode and nationality; agreement between the authorities applies where the preceding tests do not resolve the person's position under the treaty's terms. The treaty does not allow a person to choose their residence freely. S08S13

9. Departure may trigger taxation of unrealised gains on shareholdings where the person has been an IRPF taxpayer for at least ten of the preceding fifteen tax periods and the aggregate value of the shares exceeds EUR 4 million, or a holding of more than 25% is worth more than EUR 1 million. In the latter case, only the relevant shares fall within the regime. Deferrals for certain temporary departures and the special arrangements for the European Union or the EEA have their own conditions and notification requirements; they are not a general exemption on departure. S01

3. Ordinary IRPF: general income and savings

10. IRPF distinguishes between a general tax base and a savings tax base. Employment income, business and professional income and, in principle, rental income fall within the former; dividends, certain interest and capital gains on disposals fall within the latter. Special rules may change that classification, particularly for interest paid by a related entity. S01

11. Tax on the general base combines a state component and an autonomous-community component. The state scale has marginal rates ranging from 9.5% to 24.5%, with the highest rate applying to the portion above EUR 300,000; it is not the total tax. Personal and family allowances affect the calculation, and the regional scale depends on the taxpayer's territorial connection. S01S09

12. For savings income under the common regime, the state and autonomous-community components produce the combined scale below. Law 7/2024 increased the highest bracket to 30% with effect from 1 January 2025; this scale therefore applies to 2025 income and, under the provisions consulted, to 2026 income. These are marginal rates applied to the taxable base after reductions, rather than a flat charge on all receipts. S01S12

On small screens, scroll the table horizontally.

Portion of the savings tax base after reductionsCombined rate under the common regimeSources
Up to EUR 6,00019%S01S12
Above EUR 6,000 and up to EUR 50,00021%S01S12
Above EUR 50,000 and up to EUR 200,00023%S01S12
Above EUR 200,000 and up to EUR 300,00027%S01S12
Above EUR 300,00030%S01S12

13. The savings tax base is not the gross sum of all portfolio movements. Income and gains or losses follow separate aggregation and offset rules; article 49 governs cross-offsetting and the carry-forward of negative balances. Withholding by the paying institution therefore does not, by itself, establish the final tax liability. S01

4. The special inbound expatriate regime

14. Article 93 allows certain individuals who become resident after moving to Spain to retain their status as IRPF taxpayers while calculating tax under special rules based on non-resident income tax (IRNR). The regime covers the year in which residence changes and the following five years. Among its requirements are non-residence in Spain during the five tax periods preceding the move and a reason for moving that is admitted by the provision. S01

15. Eligible reasons include certain employment contracts, including remote employment under the statutory conditions, appointment as a director, a qualifying entrepreneurial activity or certain activities of highly qualified professionals. Professional athletes are excluded from the employment route. A director of an asset-holding entity must not hold an interest that creates the related-party relationship referred to in article 18 of the Corporate Income Tax Law; for certain qualifying services, the corresponding remuneration must exceed 40% of total professional, business and employment income. S01

16. A further condition is the absence of income obtained through a Spanish permanent establishment, subject to the exceptions for eligible entrepreneurial and professional activities. The regime is therefore not available to every self-employed person or every visa holder. Eligibility for a spouse, children under 25 or with a disability and, where there is no marriage, their parent is subject to additional requirements concerning arrival, residence and comparison of taxable bases. S01

17. Under this regime, the base excluding the dividends, interest and disposal gains specified in the provision is taxed at 24% up to EUR 600,000 and at 47% above that amount. The taxable savings income specified in article 93 follows its own scale, ranging from 19% to 30%. All employment income and income from activities classified as entrepreneurial that is obtained while the regime applies is deemed Spanish-source income, subject to the regulatory rules for activities before the move or after its notified end. A salary paid from abroad is therefore not exempt for that reason alone. S01S28

18. The election is notified individually using Form 149. For the principal taxpayer, the maximum six-month period runs from the start of activity evidenced by registration with Spanish social security, continued coverage under the original country's social security legislation or, where registration is not mandatory, the required supporting document. The tax return specific to the regime remains separate from the election. Article 93 also limits liability to Patrimonio to taxation on a Spanish-situs basis; it does not dispense with a separate examination of Spanish assets and the solidarity tax. S14S28S01S06

5. Non-residents and Spanish-source income

19. A non-resident is generally subject to IRNR on Spanish-source income. Activity carried on through a permanent establishment must be distinguished from activity without one, followed by consideration of any domestic exemption or treaty limitation. The location of the bank account receiving the payment does not settle that classification. S03

20. Without a permanent establishment, the general domestic rate is 24%, reduced to 19% for residents of another European Union or EEA state with effective exchange of information under the statutory conditions. Dividends, interest and disposal gains specified in article 25.1.f are taxed at 19%, subject to exemptions and treaties. These rates determine neither the tax base nor whether Spain has a right to tax. S03

21. Article 24 establishes a gross tax base for ordinary income without a permanent establishment, with special rules for, among other things, certain activities and disposal gains. For eligible EU or EEA residents, it allows expenses to be deducted under the rules it specifies, provided their direct and inseparable economic connection with the Spanish income is demonstrated. The position of a resident of a third country, particularly where a claim based on EU law is involved, requires separate analysis; this factsheet does not resolve such disputes. S03

22. When a non-resident without a permanent establishment sells Spanish real estate, the purchaser must generally withhold 3% of the agreed price as a payment on account of the seller's tax. This charge applies to the price, not the gain; it does not replace the calculation of the final liability and may lead to an additional payment or a refund. Article 25.2 provides, among other things, an exception for certain contributions to a resident company. S03S29

6. Companies: residence, profits and 2026 rates

23. An entity is resident if it was incorporated under Spanish law, has its registered office in Spain or has its place of effective management there. The latter means the place where all its activities are directed and controlled. A foreign company managed from Spain therefore cannot rule out Spanish residence merely by pointing to its foreign registration; any dual residence must then be addressed under the treaty. S02S13

24. Under direct assessment, the taxable base starts from the accounting result, adjusted in accordance with tax law. Deduction, limitation and carry-forward rules must be applied before the rate. Related-party transactions are valued at market value; a written intragroup agreement does not, by itself, substantiate a price or an expense. S02

25. For accounting periods beginning in 2026, the general rate is 25%. Transitional provision 44 of Law 27/2014 provides a specific scale for entities whose net turnover in the immediately preceding period is below EUR 1 million, together with a 23% rate for qualifying small entities. The EUR 50,000 threshold in the table refers to taxable profit, not turnover. S02S12S17

On small screens, scroll the table horizontally.

Category under the common regimePeriods beginning in 2025Periods beginning in 2026Conditions and sources
General regime25%25%Subject to categories with their own rates. S02S17
Net turnover below EUR 1 million, first portion of profit up to EUR 50,00021%19%Conditions in paragraph 26; prorated for a short period. S02S12
Same category, portion of profit above EUR 50,00022%21%Does not apply as a reduced rate for an asset-holding entity. S02S17
Small entity under article 101, unless another rate applies24%23%Conditions in paragraph 26. S02S12
Newly formed entity carrying on an eligible economic activity15%15%First profitable period and the next; exclusions in paragraph 27. S02
Asset-holding entity25%25%Low turnover alone does not give access to the preceding reductions. S02S17

26. The relevant turnover may be annualised and measured at group level under article 101; a legally separate company is therefore not necessarily the unit used for the calculation. The small-entity regime generally requires prior-period turnover below EUR 10 million, with temporary continued eligibility subject to conditions after the threshold is exceeded. Asset-holding entities are excluded from the relevant benefits. For a period shorter than a year, the EUR 50,000 profit bracket is prorated. S02

27. The 15% rate for newly formed entities applies to the first period with a positive taxable base and the following period, subject to any applicable lower rate. Asset-holding entities and entities belonging to a group are excluded; taking over an activity from a related person and certain activities previously carried on by a shareholder holding more than 50% do not constitute a newly commenced activity. Incorporating a new company therefore does not automatically give access to two years at 15%. S02

28. Dividends and gains on shareholdings may fall within article 21, subject notably to a holding of at least 5%. For dividends, the one-year holding period may be completed after the distribution; foreign shareholdings also require the foreign-tax condition specified in the provision to be checked, including its treaty-based alternative. The exemption is generally reduced by a 5% management-expense adjustment, but is subject to exceptions and exclusions. It must not be treated as an automatic exemption for all holding-company income. S02

29. Law 7/2024 introduces a Pillar 2 top-up tax for multinational groups and large domestic groups whose consolidated turnover reaches at least EUR 750 million in at least two of the preceding four periods. The 15% minimum is assessed under the specific rules for effective taxation by jurisdiction. It does not replace the nominal 25% rate and is not calculated simply by applying 15% to each company's accounting result. S12

30. The Zona Especial Canaria provides a 4% rate on the eligible portion of the base attributable to operations actually and materially carried out within its scope. Registration, permitted activities, local management, investment, employment and limits on the eligible base must be checked. Establishing a presence in the Canary Islands, or using a local address alone, is not enough to bring all profits within this rate. S11

7. VAT, IGIC and invoicing

31. Within the territorial scope of IVA, the standard rate is 21%. The 10% and 4% rates are reserved for the transactions defined in article 91; exemption is a separate category. The applicable rate must be checked at the tax point and by reference to the precise nature of the goods or services, particularly where a temporary measure applies. S04

32. In the Canary Islands, article 51 of Canary Islands Law 4/2012 sets the standard IGIC rate at 7%, alongside reduced and higher rates and zero-rated transactions. This regime cannot be inferred from the mainland IVA scale. Ceuta and Melilla also fall outside the IVA territory; their own taxes are not quantified here. S19S04

33. Determining the place of taxation comes before choosing the rate, particularly for an international service. Deduction of input tax depends on the use of expenditure for transactions carrying a right to deduct and on documentary requirements; merely receiving an invoice does not establish entitlement. Mixed and exempt transactions may require restrictions on deduction. S04

34. The obligations concerning computerised invoicing systems must be distinguished from a universal requirement to transmit every invoice in real time. The provisions and guidance consulted require the systems of the corporate income taxpayers concerned to be adapted before 1 January 2027, and those of the other persons concerned before 1 July 2027. The AEAT distinguishes the VERI*FACTU mode from the mode without transmission; the scope and exclusions of the system must be checked. These future deadlines are not presented as having already expired in September 2026. S22S27

8. Real estate: acquisition, letting and disposal

35. For an acquisition, a supply of real estate subject to IVA must be distinguished from a transfer subject to transfer tax (ITP). A taxable supply of a building suitable for residential use generally qualifies for the 10% rate, subject to the conditions and exceptions in article 91; exempt subsequent transfers may fall within ITP, subject in particular to the possibility of waiving the IVA exemption. Notarial deeds may also be subject to stamp duty (AJD) within its own scope. No single regional ITP or AJD rate is assumed here. S04S20

36. For ITP on real estate, the base generally rests on the cadastral reference value at the date of the taxable event, with a higher declared value or price taking precedence. Where no reference value is available or can be certified, the provision uses the highest of the values it lists, including market value. The negotiated sale price is therefore not necessarily the taxable base. S20

37. Under ordinary IRPF rules, rents are taxed on net income after allowable expenses. For residential lettings, the standard reduction under article 23.2 is 50% of positive net income, with higher reductions subject to conditions concerning, among other things, a designated housing-pressure area, a rent reduction or refurbishment. Transitional provision 38 preserves the previous regime for certain contracts predating the entry into force of Law 12/2023. The lease date and its use must therefore be known before applying a reduction. S01

38. A property that is not let may generate imputed taxable income even where no income is received. Article 85 covers, among other things, certain properties available for the taxpayer's use, while excluding the main home, undeveloped land and several specific situations. IRNR also provides an imputation rule for a non-resident individual holding Spanish property; the absence of rent is therefore insufficient to conclude that no return is required. S01S03

39. IBI is a local tax on certain rights over real estate. On a transfer, IIVTNU, often called municipal capital gains tax, applies to the increase in the value of urban land under its own rules; the absence of an increase may take the transaction outside the charge if established in accordance with the provision. This tax is separate from tax on the seller's disposal gain, and local filing obligations must still be considered. S21

9. Wealth tax and solidarity tax on large fortunes

40. Patrimonio generally taxes the worldwide net wealth of resident individuals and Spanish assets or rights of those taxable on a Spanish-situs basis, subject to any treaty. Its annual taxable event occurs on 31 December. Shares not traded on an exchange in entities whose assets consist of at least 50% Spanish real estate, directly or indirectly, may be treated as situated in Spain under domestic law; holding property through a foreign company therefore does not automatically remove the tax. S05

41. The state tax-free allowance is EUR 700,000 where the competent autonomous community has not set a different amount; the provision also applies it in the Spanish-situs taxation situations it specifies. The main home benefits from an exemption capped at EUR 300,000. Other exemptions, particularly those for business assets, have their own conditions and do not extend indiscriminately to all business shareholdings. S05S09

42. The subsidiary state Patrimonio scale ranges from 0.2% to 3.5%, but the autonomous communities have powers over the allowance, scale and tax reliefs. The combined limitation with IRPF involves adjustments and cannot reduce Patrimonio by more than 80%. A taxpayer must file where tax remains payable or, even without a payment, where the value of their assets and rights exceeds EUR 2 million under article 37. S05S09

43. The temporary solidarity tax on large fortunes supplements Patrimonio. The extension enacted by Royal Decree-Law 8/2023 maintains its application until wealth taxation is revised as part of the reform of autonomous-community financing; its temporary label therefore does not mean it has expired. Its exemptions refer to those under Patrimonio, and the taxable base benefits from an allowance of EUR 700,000. S06S26

44. The taxable event concerns net wealth exceeding EUR 3 million, while the scale itself has an initial 0% bracket covering EUR 3 million of the taxable base after reductions. These two figures must not be confused with the EUR 700,000 allowance. Patrimonio actually paid is deducted under the statutory mechanism; a regional rebate on that tax therefore does not guarantee that no solidarity tax will be due. S06

On small screens, scroll the table horizontally.

Portion of the solidarity-tax base after reductionsMarginal rateSources
Up to EUR 3,000,0000%S06
Above EUR 3,000,000 and up to EUR 5,347,998.031.7%S06
Above EUR 5,347,998.03 and up to EUR 10,695,996.062.1%S06
Above EUR 10,695,996.063.5%S06

45. For taxpayers liable on a worldwide basis, the solidarity-tax limitation combines this tax with IRPF and Patrimonio and refers to the statutory adjustments. The reduction in solidarity tax is itself limited to 80%. The table therefore cannot, on its own, establish the tax actually due from the total value of a person's wealth. S06

10. Inheritances and gifts

46. Inheritance and gift tax is generally payable by the individual receiving the assets, whether as an heir, donee or life-insurance beneficiary within the statutory scope. A resident recipient is taxable on a worldwide basis that may cover foreign assets; a non-resident is subject to the Spanish connecting factors defined by law. Legal entities are not subject to this tax, but to corporate income tax on the acquisitions concerned. S07

47. The calculation depends on the base, reductions, family relationship, pre-existing wealth and autonomous-community rules. The subsidiary state scale ranges from 7.65% to 34%, before applicable multipliers and reliefs; it is therefore neither a national effective rate nor a universal ceiling on the tax burden. A transfer to a child cannot be described as exempt without identifying the regional and formal requirements. S07S09

48. In ordinary situations under the common regime, the connecting factor depends in particular on the deceased's residence for an inheritance, the property's location for a gift of real estate and the donee's residence for other assets. The relevant autonomous-community residence for transfers is assessed over the five-year period defined by the provisions. For international situations, additional provision 2 of Law 29/1987 allows access to autonomous-community rules according to specific criteria; filing with the state tax authority does not necessarily mean that only the state scale applies. S07S09

49. The 1995 France–Spain treaty covers income and wealth. Inheritances require examination of the part of the treaty signed on 8 January 1963 that remains applicable; article 29 covers taxation on death. The instruments of ratification were exchanged on 29 November 1963: the treaty generally entered into force on 29 December 1963, but article 44.2.c applies to successions arising from deaths on or after the date of that exchange. It must not be given general coverage of lifetime gifts, nor should income-tax credits be transposed to transfers. S08S18

11. Treaties and international obligations

50. For relations between France and Spain, the 1995 treaty must be read together with its protocol and the applicable multilateral amendments. The official Spanish synthesised text distinguishes the original provisions from those introduced by the MLI and identifies 1 January 2023 for the general effects it describes. It remains a reading aid: the authentic texts and their conditions for taking effect prevail, particularly for an earlier transaction or a mutual agreement procedure. S08S13

51. Income from real estate may be taxed in the state where the property is situated. However, relief from double taxation differs according to the income and state of residence: on the French side, article 24 provides either a credit equal to the corresponding French tax or a capped credit based on Spanish tax for the specified categories. For a Spanish resident, the credit for French tax is also subject to limits. Taxation in Spain therefore does not necessarily remove the requirement to report the income in France. S08S13

52. Form 720 concerns information on certain categories of foreign assets and does not replace tax returns. The thresholds and calculation methods must be checked by category, including the EUR 50,000 threshold; after an initial filing, an increase of more than EUR 20,000 is measured against the level that triggered the last filing for the category concerned. Disposals or the loss of a relevant status may trigger an obligation regardless of that increase. S15S23

53. In its judgment of 27 January 2022 in C-788/19, the CJEU held that the disproportionate consequences then attached to failures to comply with Form 720 reporting requirements infringed EU law, particularly as regards limitation periods and penalties. The judgment concerns those mechanisms; it does not mean that every obligation to report foreign assets has been abolished. Current filing guidance must be examined separately, as must the ways of regularising an earlier case. S24S15S23

54. The annual corporate income tax return is generally filed within the 25 calendar days following the six months after the end of the accounting period, subject to the applicable calendar rules. A company with a 31 December year-end therefore cannot determine its deadline simply by looking at the anniversary of its incorporation. Withholdings, payments on account, IVA or IGIC returns and foreign-asset formalities require a timetable specific to the activity. S02S04S19S15

12. Illustrative cases and limits of application

55. Example of a family move. An individual spends 170 days in Spain but concentrates their activities and economic interests there; their spouse, from whom they are not legally separated, and dependent minor children live there. They cannot conclude that they are non-resident from the day count alone. The tests and presumptions in article 9 must be applied and, if France also regards the person as resident, the treaty tie-breaker must then be considered. S01S13

56. Example of a EUR 100,000 savings base. For an ordinary resident under the common regime, with no further offset and no remaining personal allowance to take into account, the gross calculation gives EUR 1,140 on the first bracket, EUR 9,240 on the next and EUR 11,500 on the last, totalling EUR 21,880. This illustration does not calculate withholding already paid or any foreign tax credit. S01S12

57. Example of a small operating company. An independent company that is not an asset-holding entity and does not qualify for the new-company rate has prior-period turnover of EUR 800,000 and a taxable base of EUR 100,000 for a twelve-month period beginning in 2026. Before deductions or credits, tax is EUR 9,500 on the first EUR 50,000 and EUR 10,500 on the balance, totalling EUR 20,000. The 2025 scale would have produced EUR 21,500 on the same base; the starting date of the period therefore changes the calculation. S02S12S17

58. Example of taxable wealth of EUR 5 million. Assuming this amount is the solidarity-tax base after valuation, debts and exemptions, the EUR 700,000 reduction produces a taxable base after reductions of EUR 4.3 million. Gross tax is then EUR 22,100, before the tax limitation, any foreign tax and deduction of Patrimonio actually paid. This amount is not an estimate of the total tax on gross wealth of EUR 5 million. S06

59. Example of an apartment sold by a non-resident. For a price of EUR 300,000, where no withholding exception applies, the purchaser withholds EUR 9,000 as an IRNR payment on account. This amount does not establish the seller's taxable gain; the gain must still be calculated, any applicable treaty applied and municipal tax considered separately. S03S21

60. These reference points do not replace an individual calculation. The autonomous community, any foral territory, the taxpayer's status, contract dates and evidence of assets must be established before applying them. This factsheet does not quantify all foral regimes, regional reliefs, social security contributions, digital assets, reorganisations or sectoral regimes; nor does it prejudge the outcome of any particular dispute. S01S02S09S10S25

Sources

The provisions and guidance were consulted on 21 September 2026. BOE consolidated texts facilitate reading but are described by their publisher as informative; official amending publications are also referenced for the transitional rules used here. The sources support the propositions to which they are attached, without certifying every aspect of any individual situation.