Guide to Spanish Taxation for International Investors

Spain is one of Europe’s most attractive destinations for international investors, combining a high quality of life with access to the EU market. However, understanding the Spanish tax system is essential before making investment or relocation decisions.

Residents of Spain are subject to worldwide taxation, meaning income from global sources is taxable. Personal income tax is progressive, with rates varying by region but typically ranging from 19% to 47% on higher earnings. For non-residents, Spain only taxes income generated within the country, usually at a flat rate of 24% (or 19% for EU/EEA residents).

Capital gains tax applies to profits from selling assets, with rates between 19% and 28%. Spain also levies a wealth tax in many regions, which affects net assets above certain thresholds. Inheritance and gift taxes can also be significant, though exemptions and reductions vary depending on the relationship to the donor.

To encourage foreign investment, Spain offers incentives such as the Beckham Law, a special regime allowing certain expatriates to be taxed as non-residents at a lower flat rate.

For international investors, professional tax planning is vital to maximize benefits while ensuring compliance. Spain provides strong opportunities—but a clear understanding of taxation is the key to success.