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Mastering taxes in Spain 2025: Essential tips

SERVICE

Mastering taxes in Spain 2025: Essential tips

SERVICE

Mastering taxes in Spain 2025: Essential tips

Moving to a new country is daunting as is. Needing to do taxes on top of that in a foreign country and maybe even foreign currency can be quite the challenge. We'll try to explain everything you need within this guide. We'll let you know when and where to file your taxes in Spain as well as letting you know what is required of you. This way you can focus on enjoying the sunny weather in Spain!

When do you need to file taxes in Spain? 

If you’ve recently moved to Spain, determining your tax obligations begins with understanding tax residency requirements. 

You are considered a tax resident in Spain if you:

  • Spend more than 183 days within a calendar year in Spain, whether consecutively or spread out.

  • Have your main professional activities or business base in Spain.

  • Have your main economic interests in Spain, such as income or investments derived in the country. 

Tax residency means you're liable to pay taxes on your worldwide income in Spain. Non-residents are only taxed on income earned within Spain. 

Tax season typically runs from April to June, and the exact deadline varies slightly each year. Mark it on your calendar to avoid penalties. 

Understanding the Spanish tax system 

Spain applies a progressive income tax system, meaning the more you earn the higher percentage of tax you pay. The system divides taxable income into brackets, with rates increasing progressively as income rises. 

Here’s an example of how this works based on general income tax rates in Spain for residents in 2025:

Income Bracket (€)

Tax Rate (%)

Up to 12,450

19%

12,451 - 20,200

24%

20,201 - 35,200

30%

35,201 - 60,000

37%

60,001 - 300,000

45%

300,001+

49%

The table above represents national tax rates. That said, keep in mind that Spain has both national and regional tax rates, which vary across regions like Catalonia, Andalusia, and Madrid. Your taxable income is subject to a combination of these. 

Additional taxes to note 

  • Wealth tax (Impuesto sobre el Patrimonio): A tax on net wealth above a certain threshold (varies by region). 

  • Capital gains tax: Tax applied to profits from selling investments or property. 

  • Non-residents tax: A flat rate applied to income earned in Spain for non-residents. 

Common tax deductions and credits 

Spain offers several tax deductions that residents can take advantage of. Here are a few examples commonly claimed by expats and residents alike:

  • Rental deductions: If you are renting your main residence you may qualify for a regional deduction on rent payments. 

  • Family deductions: Tax breaks are available to parents for childcare costs, disabled dependent care, and large families. 

  • Pension contributions: Contributions to Spanish pension funds or certain EU-approved plans may be deductible. 

  • Educational expenses: Certain costs related to education, such as tuition or training expenses, may be deductible depending on regional laws. 

  • Donations: Contributions to registered charities in Spain can qualify for a deduction of up to 80% on the first €150 donated. 

How to file taxes in Spain 

Filing taxes in Spain isn’t as complicated as it first seems, but being proactive is important. Here’s how and where to file your taxes. 

1. Gather your documentation 

Before starting the process, make sure you have the following:

  • NIE/NIF (foreigner’s tax identification number).

  • Tax withholding certificates from employers (Your Certificado de Retenciones). 

  • Bank account statements and investment records. 

  • Details of property ownership if applicable. 

  • Proof of expenses eligible for deductions. 

2. Use the Spain tax agency platform 

Spanish taxes are typically filed through the government’s official Tax Agency (Agencia Tributaria) website. The website provides a platform called Renta Web, which simplifies the process. 

You’ll need a digital certificate, reference number, or Cl@ve PIN(digital identification) to gain access. 

3. Complete and submit your tax return 

For residents the income tax return form is Modelo 100, while non-residents use Modelo 210. Fill in all required fields including income sources, deductions, and credits. 

Once completed, you can submit your tax return directly through the Renta Web platform or print and file it in person at your local tax office. 

4. Seek professional assistance if needed 

If you’re not confident in navigating Spain’s tax filing process consider hiring a tax advisor or accountant. They can ensure compliance with Spanish tax laws, optimise your deductions, and save you valuable time. 

Final tips   

Filing taxes in Spain is a lot easier than it seems. Understanding the basics and knowing where to go is a big first step in filing your taxes. Make sure to be aware of the deadlines to avoid penalties for late submissions, and keep accurate records of your income and deductions to make the process a lot smoother. Good luck with filing!

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