About taxes in Spain

Spain combines a state income tax with a regional ("autonómica") tax, so the actual rate you pay depends on where you live. Combined progressive rates typically range from 19% on the first €12,450 of taxable income up to 47%+ above €300,000. Madrid offers some of the lowest regional rates, while Catalonia and Valencia tend to be on the higher end. The Beckham Law ("Régimen Especial para Trabajadores Desplazados") is a powerful incentive for inbound expats: a flat 24% on Spanish-source employment income up to €600,000 (47% above), available for up to 6 years if you weren't a Spanish tax resident in the prior 5 years. Note: under Beckham you are taxed only on Spanish income, not worldwide. Employee social security contributions are around 6.35% of salary (capped at a base of about €4,720.50/month in 2025), covering pension, unemployment, and training. Basic public healthcare is funded through these contributions, so no separate health insurance is deducted from your payslip. A €5,550 personal allowance reduces taxable income for standard residents. The Spanish tax year mirrors the calendar year, with returns ("declaración de la renta") filed between April and June.