Understanding the Spanish tax system is crucial for expats planning to live or work in Spain. Whether you're a retiree, digital nomad, or permanent resident, knowing how taxes work can save you money and stress. Here’s what you need to know in 2025.

If you’re planning to work remotely from Spain, it’s important to understand how your visa choice can affect your tax status. Many digital nomads opt for Spain’s dedicated Digital Nomad Visa, which not only enables legal remote work but also offers attractive tax advantages. Be sure to read our full guide to learn how to combine legal residence with smart financial planning.

🇪🇸 Am I a Tax Resident in Spain?

In Spain, you're considered a tax resident if:

• You stay more than 183 days in Spain in a calendar year
• Your primary economic interests or business ties are in Spain
• Your spouse and children reside in Spain (presumption rule)

If you're a tax resident, you must declare your global income in Spain.

📋 Key Taxes for Expats in Spain

As an expat, here are the primary taxes to be aware of:

• Income Tax (IRPF): Progressive rates from 19% to 47%
• Capital Gains Tax: 19%–28% depending on the amount
• Wealth Tax: On worldwide assets over €700,000 (varies by region)
• Property Taxes: Annual IBI (local real estate tax)
• IVA (VAT): 21% standard rate on goods and services

🌍 NHR (Non-Habitual Resident) Tax Regime (2025)

Spain introduced a new Non-Habitual Residency (NHR) tax incentive in 2023 aimed at attracting foreign professionals, digital nomads, and remote workers. Here’s what it offers:

• Flat 24% income tax rate: For foreign-sourced income up to €600,000
• Duration: Applies for 6 years
• Eligibility: Must not have been a Spanish tax resident in the previous 5 years
• Application: Must apply within 6 months of registering with Spanish Social Security

The NHR regime is a major benefit for digital nomads and tech professionals moving to Spain under the new Digital Nomad Visa.

💼 Tax Tips for Digital Nomads

Digital nomads working remotely for a foreign company can benefit from:

• The NHR tax regime (if applicable)
• Deducting business expenses if registered as autónomo (freelancer)
• Using double taxation treaties to avoid being taxed twice
• Keeping thorough records of income and invoices

Remember: Working remotely while on a tourist visa is illegal in Spain. Always apply for the correct visa.

🏡 Retiree Tax Considerations

If you're moving to Spain as a retiree:

• Pensions may be taxed depending on your country of origin and tax treaty agreements
• Private pensions from abroad are usually taxable in Spain
• You must declare all foreign income once you're a tax resident

📑 Important Filing Deadlines

• Annual income tax return: April to June (Modelo 100)
• Form 720: Declaration of foreign assets above €50,000
• Quarterly tax returns: If you’re self-employed (autónomo)

Late or incorrect declarations can result in heavy fines, especially for Form 720.

⚖️ Do I Need a Tax Advisor?

Unless you're on a salary with straightforward income, it’s highly recommended to hire a local tax advisor (“asesor fiscal”)—especially if:

• You have foreign assets
• You’re self-employed
• You want to apply for NHR
• You’re unsure about double taxation

💡 Final Thoughts

Taxes in Spain can be complex for expats, but understanding your obligations and available tax regimes like NHR can make a big difference. Whether you're a digital nomad, a retiree, or planning to start a business, smart tax planning is essential for a smooth transition.

📺 Bonus: Watch Tax Experts Explain Spain's NHR & Expats Tax Rules

Want real tips from Spanish tax advisors? Watch this in-depth YouTube video to learn more: