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Enter Spain
Income Tax Guide
Guide Tax & Fiscal

Spanish Income Tax (IRPF)

A clear guide to how personal income tax works in Spain - the system, the brackets, what you can deduct, and how to file your annual return.

What is IRPF?

IRPF (Impuesto sobre la Renta de las Personas Físicas) is Spain's personal income tax. It is a progressive tax that applies to the worldwide income of individuals who are tax residents in Spain.

The tax is administered by the AEAT (Agencia Estatal de Administración Tributaria) and is filed annually through their online platform, Renta Web. The filing period typically runs from April to June each year.

Key facts

Full nameImpuesto sobre la Renta de las Personas Físicas
Administered byAEAT (Agencia Tributaria)
TypeProgressive - higher income = higher rate
ScopeWorldwide income for tax residents
Filed viaRenta Web (online portal)
StructureState portion + Regional (autonomous community) portion
PurposeFunds public services: healthcare, education, infrastructure

Rather have a licensed advisor handle your return? See our managed filing service →

1

Determine Tax Residency

Before anything else, the system needs to know whether you are a tax resident or a non-resident. This determines which tax regime applies to you.

Resident → IRPF

You are a tax resident if you spend 183+ days per year in Spain, or if your main economic interests or family are based here.

  • Taxed on worldwide income
  • Progressive rates (19%-47%)
  • Filed via Modelo 100 (Renta Web)

Non-resident → IRNR

IRNR (Impuesto sobre la Renta de no Residentes) applies if you earn income from Spanish sources but are not a tax resident.

  • Only Spanish-sourced income
  • Generally flat 24% (19% for EU/EEA)
  • Filed via Modelo 210

The rest of this guide focuses on IRPF (residents)

If you are a non-resident, the IRNR regime is simpler but fundamentally different. Consult AEAT or a tax advisor for IRNR-specific guidance.

2

Calculate Total Income

IRPF splits your income into two separate bases, each taxed under its own set of brackets. Understanding this split is essential because mixing them incorrectly leads to wrong calculations.

General Taxable Base (Base imponible general)

Taxed at progressive rates. Includes:

Employment income (salary)
Self-employment income
Rental income
Business income
Certain pensions

Savings Taxable Base (Base imponible del ahorro)

Taxed at separate, lower rates. Includes:

Interest income
Dividends
Capital gains (sale of assets)
Investment fund returns
3

Apply Reductions Before Tax

Before the tax brackets are applied, certain amounts are subtracted from your taxable base. These reductions lower the income figure that enters the bracket calculation, making them very valuable.

Pension contributions

Contributions to qualifying pension plans (up to €1,500/year for individual plans).

Alimony payments

Court-ordered alimony to a former spouse is deductible from the general base.

Disability reductions

Additional reductions for taxpayers or dependents with a recognised degree of disability.

Regional deductions

Each autonomous community offers its own set of deductions (see the Valencian example below).

4

Progressive Tax Brackets (2025)

IRPF is split between the state and your autonomous community. The state portion is the same everywhere; the regional portion varies. Below are the standard combined rates.

General taxable base

Income range State Regional (avg) Combined
€0 - €12,4509.50%9.50%19.00%
€12,450 - €20,20012.00%12.00%24.00%
€20,200 - €35,20015.00%15.00%30.00%
€35,200 - €60,00018.50%18.50%37.00%
€60,000 - €300,00022.50%22.50%45.00%
€300,000+24.50%22.50%47.00%

Savings taxable base

Savings range Rate
€0 - €6,00019%
€6,000 - €50,00021%
€50,000 - €200,00023%
€200,000 - €300,00027%
€300,000+28%

Note: Regional rates vary by autonomous community. Some communities (e.g. Madrid) have lower rates while others (e.g. Catalonia, Valencia) have higher top brackets. The calculator uses community-specific rates for accuracy.

5

Personal & Family Minimums

Spain grants every taxpayer a minimum personal and family allowance (mínimo personal y familiar). This amount is effectively tax-free and reduces your taxable base.

Concept Annual amount
Taxpayer (under 65)€5,550
Taxpayer (65-74)€6,700
Taxpayer (75+)€8,100
1st child (under 25)€2,400
2nd child€2,700
3rd child€4,000
4th+ child€4,500
Child under 3 (additional)€2,800
Disability 33%-65%€3,000
Disability 65%+€9,000
6

Withholdings & Final Result

Throughout the year, your employer (or you, if self-employed) makes withholding payments (retenciones) to AEAT on your behalf. When you file your annual return, you compare:

Total tax calculated (from brackets, after minimums)

Withholdings already paid (retenciones)

Positive result: you owe additional tax

Negative result: AEAT owes you a refund

What the final output should show

Gross income
Taxable base (general)
Taxable base (savings)
Deductions applied
State tax
Regional tax
Total tax
Net income
Effective tax rate

Documents Typically Required for Filing

Gather the following before you start your annual return. Having everything ready will make filing through Renta Web significantly faster.

1

Employment withholding certificate

Your employer provides this (Certificado de Retenciones) showing salary and tax withheld.

2

SEPE certificate (if applicable)

If you received unemployment benefits during the year.

3

Bank tax information

Annual summary from your bank showing interest earned, dividends, capital gains.

4

ID documents of all family members

NIE/DNI of spouse and children for family deductions.

5

Rental contract + payment proof

If you rent out property, or if you claim rental deductions as a tenant.

6

Mortgage documents

Annual statement from your bank showing interest and principal paid (if pre-2013 mortgage).

7

Bank account number for refund

Spanish IBAN where AEAT will deposit your refund.

8

Previous year tax draft

AEAT often pre-fills a draft (borrador) based on data from employers and banks. Always review it.

9

Pension contribution receipts

Proof of payments into private pension plans.

10

Union / professional fees

Receipts for trade union membership or professional association dues.

11

Private health insurance (self-employed)

If you are autónomo, premiums for yourself, spouse, and children under 25.

12

Nursery fees (bank-paid only)

Some communities allow deductions for nursery school. Must be paid via bank transfer.

13

Property documents (if landlord)

Cadastral reference, rental income records, and deductible expenses for rented properties.

That's a long checklist.

If you'd rather hand the whole thing to a professional, our managed filing service takes care of document collection, preparation, and submission - done for you. Get your return filed →

Regional Example: Valencian Community Deductions

Each autonomous community offers its own set of deductions on top of the national system. Below is an example of deductions available in the Comunitat Valenciana that are particularly relevant to expats.

Healthcare deductions

You may deduct expenses for:

Medical treatments - consultations, procedures, therapies
Mental health treatments - psychologist, psychiatrist sessions
Dental treatments - orthodontics, implants, general dentistry
Glasses & optical - prescription glasses, contact lenses

Sports & physical activity deductions

Sports activities - gym memberships, organised sports, classes
Sports equipment - purchased from registered retailers

Requirements for all Valencian deductions

  • You must have a proper invoice (factura) from the provider
  • Payment must be made by bank transfer or card (traceable)
  • The provider must be a registered business
  • Cash payments are not deductible

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