Short answer: if you are tax resident in Spain, you pay Spanish income tax (IRPF) op je worldwide income. Salary, pension and rental income are taxed progressively in Andalusia, combined (state and region), from 19% to 47%. Savings income such as interest, dividends and capital gains is taxed from 19% to 30%. You file a return every spring: for 2025 income the window ran from 8 April to 30 June 2026. If you move to Spain to work, you can sometimes opt for a special regime at 24% up to 600,000 euros.
Anyone who settles in Marbella, Benahavís or Estepona sooner or later becomes tax resident in Spain. From then on a lot changes: you no longer pay only on your Spanish home, but on all your income, including income from abroad. In this article you read how Spanish income tax works in Andalusia, which rates apply in 2026 and what to watch out for.
Not resident yet and do you only own a home here? Then read tax on a second home. When you become resident is explained in the 183-day rule.
Who pays Spanish income tax?
You are tax resident in Spain if you stay there for more than 183 days in a calendar year, if the centre of your economic interests is there, or if your spouse and minor children usually live there (article 9 of the income tax law). As a resident you pay IRPF on your worldwide income. As a non-resident you only pay non-resident tax on Spanish income, such as rent or the deemed income from your home.
If you live in two countries at once, the tax treaty between Spain and your home country decides where you are tax resident. More on that in moving to Spain.
Two types of income
| Type | Examples | Rate (state and Andalusia combined) |
|---|---|---|
| General income (base general) | Salary, pension, self-employed income, rental income, the deemed income from a second home | Progressive from 19% to 47% |
| Savings income (base del ahorro) | Interest, dividends, capital gains on the sale of shares or property | From 19% to 30% |
The rates in Andalusia in 2026
The rate on general income has a national part and a regional part. Andalusia has lowered its own scale since 2022 (Ley 5/2021, article 23, amended by Decreto-ley 7/2022). Combined, that gives:
| Taxable income (euros per year) | State | Andalusia | Combined |
|---|---|---|---|
| 0 to 12,450 | 9,5% | 9,5% | 19% |
| 12,450 to 13,000 | 12% | 9,5% | 21,5% |
| 13,000 to 20,200 | 12% | 12% | 24% |
| 20,200 to 21,100 | 15% | 12% | 27% |
| 21,100 to 35,200 | 15% | 15% | 30% |
| 35,200 to 60,000 | 18,5% | 18,5% | 37% |
| 60,000 to 300,000 | 22,5% | 22,5% | 45% |
| more than 300,000 | 24,5% | 22,5% | 47% |
These are brackets: each rate only applies to the part of your income within that bracket. On the tax-free allowance you effectively pay nothing: 5,550 euros per person, 6,700 euros from age 65 and 8,100 euros from age 75, with extra amounts for children and dependent parents.
Savings income has a fixed scale throughout Spain: 19% up to 6,000 euros, 21% up to 50,000 euros, 23% up to 200,000 euros, 27% up to 300,000 euros and 30% above that. The top rate rose from 28% to 30% from tax year 2025.
Pensions from abroad
Which country may tax your pension depends on the type of pension and the tax treaty. A private or occupational pension is often taxed in Spain, a civil service pension usually in the country that pays it. Under the current treaty between the Netherlands and Spain (from 1971), the AOW and a private or occupational pension are taxed in Spain, a government pension in the Netherlands. A new treaty is on the way: according to 2026 reports, the Netherlands would then be allowed to tax pension payments above about 15,000 euros a year, but it has not yet been approved. Have this checked for each pension; an overview is in moving to Spain.
Rental income and a second home
- Rent: you pay on the net rent after deducting costs. If you rent out long-term as the tenant's main residence, you get a 50% reduction on the net rent, or 60% if the home was renovated in recent years. The higher reductions of 70% and 90% only apply in stressed housing zones, and Andalusia has not designated any. Holiday rentals get no reduction.
- Second home: if besides your main residence you have another home that you do not rent out, then as a resident you also add a deemed income of 1.1% or 2% of the cadastral value to your general income.
All the rules for renting out are in renting out your property in Spain.
Selling your home as a resident
The capital gain falls under your savings income (19% to 30%). There is no 3% withholding as there is for non-residents. Two exemptions matter:
- Reinvestment: if you reinvest the proceeds from your main residence in a new main residence, the gain is exempt in proportion to the amount reinvested.
- 65 or older: if you sell your own main residence, the gain is exempt.
The municipal plusvalía paid is still due.
Moving to Spain to work: the inbound expat regime
Are you coming to Spain for a job, as a director, as a remote worker for a foreign company or as an entrepreneur, and were you not a Spanish resident in the previous five years? Then you can sometimes opt for the special regime for inbound expats, often called the Ley Beckham . You then pay 24% on employment income up to 600,000 euros and 47% above that, for the year you arrive and the five years after. You apply with modelo 149, within six months of starting your activity. Always have it calculated whether the regime is more favourable for you.
Tax return and deadlines
| What | When |
|---|---|
| Annual IRPF return (declaración de la renta) | In spring. For 2025 income the campaign ran from 8 April to 30 June 2026, with direct debit until 25 June. |
| Report of foreign assets above 50,000 euros per category (modelo 720) | Until 31 March |
| Wealth tax | 100% relief in Andalusia; only very large estates may face the solidarity tax |
Not everyone has to file: if you only have a salary up to 22,000 euros from one employer, you are usually exempt. With foreign income, rent or a second home you almost always have to file in practice. Andalusia also has its own deductions, including for young people and over-65s renting a main residence and for births or adoptions.
How we help
We guide people moving to the Costa del Sol in finding a home, and put you in touch with an independent Spanish tax adviser who also knows your home country. That way you arrange your move and your taxes in the right order.
Moving to Spain? Tell us your plans, and we will put you in touch with a tax adviser who knows both countries and find the right home together.
Tell us your planSend us a WhatsAppRead also: moving to Spain, the 183-day rule, tax on a second home and our tax and law guide.
This article is part of our guide to tax and law for property in Spain: all the rules for buying, owning, renting out, selling and inheriting in one place, checked every month.
Frequently asked questions
How much income tax do you pay in Andalusia?
On general income such as salary, pension and rent from 19% to 47%, in brackets. On savings income such as interest, dividends and capital gains from 19% to 30%.
When am I taxed in Spain on my worldwide income?
When you are tax resident: more than 183 days a year in Spain, or your economic interests or your family are there.
When do I file a return in Spain?
Every spring. For 2025 income the campaign ran from 8 April to 30 June 2026.
What is the Beckham Law?
A special regime for people who come to Spain to work and were not resident in the previous five years: 24% on employment income up to 600,000 euros, for six tax years.
Do I pay tax on my second home as a resident?
Yes, if you do not rent it out: you add a deemed income of 1.1% or 2% of the cadastral value to your general income.
Do I have to pay wealth tax as a resident in Andalusia?
In practice no: Andalusia gives 100% relief. Only a very large estate may face the national solidarity tax.
Sources
- Ley 35/2006 del IRPF, articles 9 (tax residence), 57 (personal allowance), 63 and 66 (scales), 85 (deemed income) and 93 (inbound expats), BOE
- Ley 5/2021 de Tributos Cedidos de Andalucía, article 23, amended by Decreto-ley 7/2022 (Andalusian scale); summarised by Taxdown, Los tramos del IRPF en Andalucía para 2026 (19 October 2026) and Guiafiscal, IRPF Andalucía (October 2026)
- Guiafiscal, Tramos IRPF 2026 (5 July 2026): savings scale and the 30% top rate under Ley 7/2024
- Agencia Tributaria, press release on the start of the Renta 2025 campaign (8 April 2026): deadlines and filing obligation
- El Español, La ley de vivienda confirma que los caseros podrán reducir el alquiler en el IRPF (14 April 2026): reductions of 50%, 60%, 70% and 90% (Ley 12/2023)
- INEAF, Ley Beckham 2026: requisitos y novedades del régimen de impatriados (10 June 2026)
Written by the Imagine Marbella editorial team. Updated October 2026. This is general information and not tax advice: always have your situation checked by a tax adviser who knows both Spain and your own country.
