If you have not submitted your Spanish income tax return yet, don’t forget that the deadline is 30 June 2026. Residents of Spain need to declare their worldwide income and gains received in 2025.
It’s that time of the year in Spain, when we compile and submit our personal income tax returns – declaración de la renta – for the 2025 tax (calendar) year. If you are tax resident in Spain this will cover your worldwide income and gains. Filing opened on 8 April, with a final deadline of 30 June. If you make payment by direct debit, the deadline is 25 June 2026.
There are penalties for late returns, so don’t leave it too late. Completing your return can be complicated if you earn income from various sources, particularly from overseas, or if you are eligible for deductions. Using a tax accountant could make your life easier and ensure you get it right.
The tax form for residents is Modelo 100 Residentes Fiscales en España. Beckham regime taxpayers use Modelo 151. Electronic filing is done through the Agencia Tributaria website, but if you are not comfortable with online returns you can file through your tax office. Couples may choose whether to submit individual or joint returns, but joint returns are usually only beneficial where one spouse’s income falls below the personal allowance.
Do you need to submit a return?
Most foreign nationals living in Spain need to complete a tax return. Generally, only those on low incomes and where it is taxed at source in Spain are exempt.
If you believe you are not tax resident in Spain (in which case you only need to declare income and gains earned in Spain), ensure you have got this right. If the tax office believes you are a tax resident, it will be up to you to prove otherwise. In summary, if you meet any of the criteria below, you are resident in Spain for tax purposes:
- You spend more than 183 days in Spain in total in a calendar year, or
- Your ‘centre of economic interests’ is in Spain, or
- Your ‘centre of vital interests’ is in Spain (i.e. if your spouse lives here).
Spanish income tax rates and deductions for 2025 income
General and savings income are taxed differently in Spain, but you declare them both on your personal income tax return.
The progressive rates for general income (employment, pensions, rentals etc) vary per region, since each autonomous community can adjust the local half of the rates. At state level, the rates for 2025 income start at 19% for income up to €12,450, rising over six income bands to 47% for income over €300,000. However, the rates may be a little higher or lower in your region.
Spain provides a type of personal allowance, the Mínimo Personal y Familiar, which is given as a tax credit against the total tax payable. For 2025 income, the national basic allowance is €5,550 if you are under 65, increasing to €6,700 up to age 75 and then to €8,100, though some regions have different levels of allowances. You may be able to claim additional amounts if you have a disability or have dependants living with you.
Other deductions may be available for your circumstances, your tax accountant will guide you.
The progressive rates for savings income do not vary per region and for 2025 income are:
| Income | Tax rate |
| Up to €6,000 | 19% |
| €6,000 to €50,000 | 21% |
| €50,000 to €200,000 | 23% |
| €200,000 to €300,000 | 27% |
| Over €300,000 | 30% |
What you need to declare
Tax residents of Spain are liable to Spanish income tax on worldwide income and gains. You must declare all income generated in the UK and anywhere else outside Spain, whether it is pension, rental or investment income. Follow the Spain-UK double taxation treaty to establish where to declare and pay tax on your UK income.
UK pension income is taxable only in Spain, with one key exception – income from UK government service pensions remains taxable in the UK. Although not taxed in Spain, you still include it in the calculation to determine the Spanish tax due on taxable income. This can push you into a higher tax bracket.
UK rental income is taxable in both countries, but the UK tax paid can be offset against your Spanish liability.
Capital gains made on the sale of movable assets (so excluding real estate) are exclusively taxed in the country where the person receiving the gain is resident. If you live in Spain and sell any UK investments, whether equities, bonds or substantial shareholding in UK companies, your gain is only taxed in Spain. If you sell a UK property, the gain is taxable in both countries under the local rules, but your UK payment is credited against your Spanish liability.
Wealth tax returns
Wealth tax returns are also due by 30 June, where you declare your worldwide assets as at 31 December 2025. You only need to submit one if your tax liability, after deducting all possible deductions and allowances, results in tax due.
Residents of Andalucía and Madrid receive a 100% credit for the main wealth tax (so are effectively exempt). However, if the total value of your assets surpasses €2 million, you still need to complete a wealth tax return for information purposes though no tax is due.
The filing period for the Solidarity Tax on Large Fortunes runs from 1 July to 31 July.
Tax planning
If you are concerned about how much tax you paid in 2025, take specialist tax and wealth management advice to discover how you can improve your tax position for 2026 and beyond. Take care to only use tax planning arrangements that are compliant in Spain, and to declare your worldwide assets and income correctly each year. While there is not much you can do on employment income, if you are retired and have investment capital, some investment arrangements provide significant tax advantages in Spain.
This article is a summary covering the basic elements of Spanish income tax; it is important to seek personalised, professional advice. For questions about completing your tax return, speak to a tax accountant.
If you have any general questions about taxation in Spain and wealth management solutions to lower your tax liabilities, please do not hesitate to contact us. Blevins Franks advisers are cross-border tax and wealth management specialists with in-depth knowledge of the Spanish tax regime and the compliant tax planning opportunities available here.
Contact Blevins Franks to arrange a personal consultation now.
