Expat tax in Spain: What you need to know as a UK expat

This guide is for informational purposes only and does not constitute tax advice. Get professional tax advice and guidance from your lawyer or tax advisor when dealing with taxes abroad.

If you’re one of the thousands of Brits looking to relocate to Spain, you’ll need to get to grips with how tax works there.

It’s important to understand your obligations if you’ll be working or earning income as a British expat in Spain. However, it can be difficult to understand the tax system in a new country - especially if your Spanish is a little rusty.

We’re here to help, with a handy guide to expat taxes in Spain. This includes info on income tax for British expats, current tax rates and the importance of getting professional financial advice.

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Taxes in Spain - key facts

Before we dive into the details, here are a few of the main points you need to know about taxes in Spain:¹

• Tax year: 1st January to 31st December
• Tax authority: Agencia Española de Administración Tributaria (AEAT)
• Tax return due date: 30th June
• Personal income tax in Spain is known as IRPF (Impuesto sobre la Renta de las Personas Físicas).

On arrival in Spain, you’ll need to register for a Número de Identidad de Extranjero (NIE) or Foreigner Identification Number. You’ll need this whether you’re a short or long-term resident, for things like opening a bank account and getting a mortgage in Spain.

How are expats taxed in Spain?

Foreign nationals living in Spain are taxed according to their tax residency status.

You’re considered a tax resident if any of these apply:²

• You live there permanently and typically spend more than 183 days in the country in a year (either consecutive or non-consecutive)
• You have a business in Spain, or relevant business interests
• Your spouse and/or dependent children live there permanently.

If you’re classed as a tax resident, this means you have to pay income tax on both income earned in Spain and income earned globally within that tax year.²

If you spend less than 183 days in the country (for example, if you split your time between Spain and the UK, or another country) per year, you’re considered a non-resident.

In this case, you’ll only have to pay income tax on anything you earn in Spain.² Other income will be taxed in the country you’re considered to be domiciled or a permanent resident in - for example, the UK.

Here’s how it works at a glance:²

Who pays personal income tax in Spain?

You’ll need to pay income tax in Spain if you’re a tax resident, or you’re a non-resident who earns income sourced in Spain.

For example, if you work for a Spanish employer or business, or have assets such as a rental property located in Spain that brings in income.

What kinds of income are taxable in Spain?

Expats who are considered tax residents in Spain - which will be the case for anyone who lives there permanently - will need to pay income tax on the following:²

• Spanish-sourced income from employment or self-employment
• Global income from employment or self-employment
• UK state pension and private pension payments
• Rental income for property in Spain, the UK or overseas
• Savings
• Capital gains - if you make a profit on selling property in Spain, for example, then this may be subject to capital gains tax.

Income tax rates in Spain

Spain has two different tax rate systems for residents and non-residents.

If you’re classed as a non-resident (spending less than 183 days a year in Spain) then you’ll pay a flat rate of income tax on any income earned from Spanish sources. This is 24% for non-EU citizens, which includes UK nationals.²

If you’re a tax resident in Spain, you’ll pay tax rates on a progressive scale based on total income for that tax year.

Let’s take a look:²

The total rate is made up of both national and regional rates, so it can vary depending on which part of Spain you live in. You’ll also get a tax-free personal allowance of between €5,500 EUR and €8,100 EUR depending on your age.²

Other expat taxes in Spain

Alongside income tax, there are some other taxes you may need to know about as a British expat living in Spain:²

• Wealth tax in Spain - this is a tax which may apply to expats with significant worldwide wealth. You may have to pay it if you have assets more than €500,000 - €800,000 EUR, although there’s also an additional €300,000 allowance if you own a home in Spain.
• Solidarity tax for high-net-worth individuals - if you have assets of more than €3 million (after a personal allowance) you may need to pay this. Rates range from 1.7% to 3.5% depending on the value of your assets.
• Capital gains tax - if you sell global property or other assets as a Spanish tax resident, you may need to pay capital gains tax on the profits. Rates range from 19% to 26% depending on how much profit you make.

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Does the UK have a double tax treaty with Spain?

Yes, the UK and Spain have what is known as a double taxation agreement (DTA). This is designed to prevent the same income from being taxed twice, once in the UK and once in Spain.

The DTA covers income tax, capital gains tax and pensions, along with other taxes.

It’s best to get specialist tax or financial advice to help you understand which country you need to pay tax in as an expat, and how to claim double tax relief if eligible.

Why it’s crucial to get professional advice on expat tax in Spain

Tax can be extremely complicated, especially when you’ve moved to a new country and the tax system is different to what you’re used to.

It can be even more complex if you live and earn income in more than one country. There’s also the language barrier to consider, as many forms, online platforms and guidance documents may be in Spanish.

This is why it’s really important to get professional tax advice before moving to Spain. A specialist can help you understand your tax obligations and structure your affairs properly, so you’re not paying too much tax or falling foul of the rules in either country.

They can also help with the often-confusing issue of double tax treaties, where you may need to claim tax relief to avoid paying tax twice in two jurisdictions.

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Sources used:

Sources last checked 11-Nov-2025