national who gives up Spanish tax residence is nonetheless considered a Spanish tax resident for the year of departure and the next four tax years if his or her tax residence is transferred into a territory of a tax haven.
Special tax regime for inbound assignees, remote workers, directors and entrepreneurs. Under the Spanish regulation, an individual who transfers his or her residence to Spain under certain circumstances may elect to be subject to tax under the rules applicable to nonresident taxpayers.
This election is subject to the fulfillment of the following requirements:
• The individual must not have been a Spanish tax resident in the five years preceding the tax year of his or her arrival in Spain.
• The transfer to Spain must be directly connected with the following circumstances:
A labor contract with a Spanish entity (an assignment letter with the home country entity may also be valid) with the exception of a contract for a professional athlete. This condition shall be deemed to be met when employer and employee agree on a remote work agreement through the exclusive use of computer, telematic and telecommunication means and systems.
An appointment as a director of a Spanish entity, regardless of the percentage of participation in the equity of the Spanish entity, with the exception of a wealth or asset entity, on which certain limitations apply.
For the execution of an economic activity qualified as an entrepreneurial activity in accordance with Article 70 of the Spanish Law 14/2013.
For the execution of an economic activity by a highly qualified professional who provides services to emerging companies (startups) or who carries out training, research, innovation and development activities.
• The individual cannot receive income that is deemed to be obtained through a permanent establishment in Spain, with the exception of the income arising from the economic activities listed above.
Under this special tax regime, employment income and selfemployment income up to EUR600,000 is taxed at a rate of 24%, and employment and self-employment income exceeding this threshold is taxed at a rate of 47%.
The election is effective for the first year of residence in Spain and the following five consecutive years, and such election must be made within the six months following the registration date for social security purposes.
As of 1 January 2023, this special tax regime for inbound benefits may be extended to the family members of the main applicant referred above, restricted to the spouse, children under 25 years old or any age in case of disability and, in the event of non-existence of a marriage bond, the parent of the latter. Certain requirements related to the arrival date to Spain and level of income, among others, must be met for this extension to be applicable.
Income subject to tax. The taxation of various types of income is described below.
Employment income. Taxable employment income includes all compensation received for personal services, including salaries and wages, payments for certain business-related expenses, pensions, housing allowances and other allowances paid in cash or in kind.
Certain benefits in kind must be evaluated according to specific valuation rules, enabling potential tax optimization or savings.
Spanish residents with overseas duties may apply a foreign earned income exemption of up to EUR60,100 if certain conditions are met.
Irregular employment income (if it is earned over a period greater than two years or if it is irregular for its nature) may be eligible for a limited 30% reduction if certain conditions are met.
Self-employment and business income. Taxable self-employment and business income includes income from all industrial, commercial, professional and artistic activities carried on by a taxpayer.
Residents are subject to tax on self-employment and business income at the rates described in Rates. Nonresidents are subject to a flat 24% (19% for residents of other European Union [EU] Member States and European Economic Area [EEA] Member States) tax on gross self-employment and business income. Only those individuals whose tax residence abroad is located in an EU or EEA state are allowed to claim a tax deduction for certain expenses related to the business and the activity performed, such as salaries paid, materials purchased and miscellaneous expenses.
Directors’ fees. Directors’ fees are considered ordinary income and are taxable for residents at the rates described in Rates and to nonresidents at a flat rate of 24% (19% for residents of other EU Member States).
Investment income. Resident individuals are subject to tax on rental income and other consideration derived from the lease of rural or urban real estate at the rates described in Rates. Nonresident individuals are subject to tax on such income at a flat rate of 24% (19% for residents of other EU Member States and EEA Member States).
For tax residents of Spain, positive net income from the rental of a real estate property may be reduced by 50% if the property is destined for living (regardless of the age or amount of income of the tenant). For rental agreements to be signed as from 1 January 2024, increased rates have been approved if certain circumstances are met.
Urban real estate properties that do not represent the taxpayer’s permanent place of residence and are not rented out will result in a taxable income (deemed income) that is determined as the result of applying the rate of 2% on the cadastral value (1.1% if the cadastral value of the real estate property was reviewed in the preceding 10 years). If the cadastral value is not determined as of the date of accrual (generally on 31 December), the deemed income is calculated by applying the rate of 1.1% to half of the
The reduction is limited to the lesser of the 30% of the taxpayer’s net employment income or business income and EUR1,500 annually.
The limit of EUR1,500 is increased up to the following amounts in the circumstances described below.
• EUR8,500 annually, provided that such increase comes from employer/business contributions, or from employee contributions to the same employment pension scheme promoted by the employer for an amount equal to or less than the result of applying the following rates to the employer/business contributions amount:
Up to EUR500: 2.5%
Greater than EUR500 and up to EUR1,500: EUR1,500 plus the result of multiplying 0.25 by the difference between EUR 500 and the contribution made
Above EUR1,500: 1%
The 1% rate is applied if the employee’s gross employment income from the employer that makes the pension contribution is greater than EUR60,000.
• EUR4,250, provided that such increase comes from contributions made by self-employed persons
In addition, individuals whose spouses receive net employment income and income from business activities below EUR8,000 can choose to make contributions up to EUR1,000 annually to pension plans in which the spouse is the beneficiary, and these contributions can be claimed as a reduction from the taxable base of the taxpayer making the contribution.
As general rule, pension plan contributions made in the fiscal year that cannot reduce the taxpayer’s taxable base may generally be carried forward for a maximum of five fiscal years.
Personal allowances. The allowances listed below reduce an individual’s tax liability by an amount resulting from the application of the progressive tax rates to the total allowances so they are not offset against the gross taxable base. The following are the allowances.
Personal allowance
Allowance for taxpayers over 65 years of age 6,700 Allowance for taxpayers over 75 years of age 6,950
Allowance for handicapped taxpayer for whom the grade of disability equals or exceeds 65% 9,000
Allowance for handicapped taxpayer for whom the grade of disability is less than 65% 3,000
Allowance for handicapped taxpayer needing help with mobility 3,000 (additional)
Each ascendant living with taxpayer whose annual income is less than EUR8,000 Over 65 years of age 1,150 Over 75 years of age 1,400
Allowance Amount (EUR)
Each disabled dependent child or ascendant living with the taxpayer whose annual income is less than EUR8,000
Individuals for whom the grade of disability exceeds 65% 9,000 (additional)
Other disabled individuals 3,000 (additional)
Each disabled individual needing mobility help 3,000 (additional)
Each dependent child under 25 years of age living with taxpayer whose annual income is less than EUR8,000
Fourth child and subsequent children
Allowance for children under three years old 2,800 (additional)
Local governments may allow additional personal allowances and deductions.
Business deductions. Deductions are permitted for all expenses necessary to obtain business income and for the depreciation of assets related to business activities.
Rates. Total tax liability consists of the tax liability computed under the general rates plus the tax liability computed under the autonomous community rates. Consequently, the aggregated maximum marginal rate depends on the marginal tax rate of the autonomous community where the taxpayer resides. For example, the maximum marginal tax rate is 45% for an individual resident in Madrid and 50% for a resident in Cataluña (for income above EUR300,000).
Dividends, bank interests and capital gains from the sale of assets are subject to a progressive scale of rates ranging from 19% to 28% (see Investment income).
General income, such as employment income and rental income, among others, derived by nonresidents is generally taxed at a flat tax rate of 24% (or 19% for residents of other EU Member States and EEA countries).
See Special tax regime for inbound assignees and directors for details regarding the tax rate applicable to individuals granted under the special tax regime.
Credits. Tax credits are allowed in only a few specified circumstances, such as for gifts to specified entities and for certain double tax relief.
In addition, an investment tax credit is available for amounts paid for the acquisition, maintenance, repair, restoration or exhibition of assets deemed to be of cultural interest. The credit is granted at a rate of 15% on a maximum expenditure of 10% of the taxpayer’s tax base.
As a general rule, Spanish tax resident individuals are required to file an annual income tax return, regardless of their marital status, referred to the fiscal year of reference (which is also the calendar year). Under certain circumstances, it is possible to file a joint tax return for all the family members. It is allowed to offset the payment of the debt of one spouse resulting from the annual income tax return, with the balance in favor of the other spouse’s tax return (tax refund).
Annual income tax returns are usually filed from 4 April to 30 June following the end of the calendar year. As a general rule, the tax due is payable with the tax return, but the taxpayer can opt to pay 60% of the tax due by the time the tax return is filed (provided it is filed on time) and the remaining 40% can be paid by early November with no additional associated interest.
The filing period referred to above also applies to individuals granted the special tax regime for inbound assignees or directors.
Spanish nontax resident individuals must file an income tax return for each type of income, and the deadlines and filing frequency vary depending on the type of income and the accrual date.
E. Double tax relief and tax treaties
An individual tax resident in Spain may claim a foreign tax credit to avoid double taxation with respect to foreign income tax paid on the non-Spanish source income (credit method). Under certain double tax treaties, the exemption method (with progression clause) is allowed. Spain has entered into double tax treaties with the following jurisdictions.
Albania Finland Pakistan
Algeria France Panama
Andorra Georgia Paraguay (b)
Argentina Germany Philippines
Armenia Greece Poland
Australia Hong Kong SAR Portugal
Austria Hungary Qatar
Azerbaijan Iceland Romania
Barbados India Russian
Belarus Indonesia Federation
Belgium Iran Saudi Arabia
Bolivia Ireland Senegal
Bosnia and Israel Serbia
Herzegovina Italy Singapore
Brazil Jamaica Slovak Republic
Bulgaria Japan Slovenia
Canada Kazakhstan South Africa
Cape Verde Korea (South) Sweden
Chile Kuwait Switzerland
China Mainland Latvia Thailand
Colombia Lithuania Trinidad and Costa Rica
Luxembourg Tobago
Croatia Malaysia Tunisia
Cuba Malta Türkiye
Cyprus Mexico USSR (a)
Czech Moldova
United Arab
Republic Morocco Emirates
Dominican Netherlands
United Kingdom
The law establishes a residence visa for employees to be temporarily assigned to work in Spain within the framework of an employment or professional relationship, or for professional training purposes, with a company or group of companies established in Spain (Intracompany Residence Permit [Autorización de Residencia por Traslado Intramepresarial]). For senior professionals or managing director-type individuals (highly qualified professionals), the visa is called the Residence
Authorizations for Highly Qualified Personnel - EU Highly Skilled Professional (Blue Card) (Autorizaciones de Residencia para Personal Altamente Cualificado- Tarjeta Azul). For foreigners who are self-employed or employed by companies registered outside Spain and are seeking to provide professional services to non-Spanish companies from within Spain by using information and communication technologies, the visa is called International Teleworkers (Teletrabajadores de Caracter Internacional).
Among other measures, the law provides that the Spanish government may grant residence visas to the following types of foreigners:
• Entrepreneurs
• Investors
• Highly qualified professionals - EU Highly Skilled Professional (Blue Card)
• Researchers
• Employees with intercompany transfers
• International teleworkers
Foreigners who prove that they belong in one of the categories listed above and who wish to reside and work in Spain may request a residence visa if they fulfill all of the following conditions established in the law:
• They are not illegally residing in Spain.
• They are more than 18 years old (Spanish full age).
• They do not have a criminal record in Spain or in the jurisdictions where they have resided for the past five years.
• They are not rejectable by jurisdictions with which Spain has entered into an agreement.
• They have medical insurance with an entity authorized in Spain.
• They have enough economic resources to support themselves and their family members (if applicable).
• They pay the government fees.
Highly qualified professionals and EU Highly Skilled Professional (Blue Card). Law 11/2023 of 8 May introduces amendments to align with the EU Blue Card Directive. A new 71 bis in Law 14/2013 establishes the complementarity of the national entry and residence authorization scheme for highly qualified professionals with the EU Blue Card regime.
Applicants must possess educational qualifications equivalent to Level 2 of the Spanish Qualifications Framework for Higher Education (that is, a bachelor’s degree on completing a program of at least four years) or above. Alternatively, they must have at least five years of relevant experience in their sector or profession (or three years in the case of information technology professionals).
ICT Nacional. The ICT Nacional applies to the following workers:
• Workers posted between subsidiary companies or companies within the same group, when they have passed the period limited by the directive (one year for training and three years for the other activities).
• Workers posted between subsidiary companies or the same group who are neither a manager, nor a specialist nor a training worker, but who can be considered key personnel for the performing of a job that is particularly complex.
• Workers transferred as a result of a contract to provide services between the company that transfers the worker and the one that receives the worker, if the two companies are not part of the same company group and if the worker is part of the workforce of the company that transfers the worker.
Remuneration. The following are the rules applicable to remuneration:
• The minimum salary is the salary established by the applicable Spanish Collective Bargaining Agreement.
• The salary received in the country of origin must be indicated in both local and foreign currency.
• Bonuses and allowances may not be considered.
• Benefits in kind may not be more than 30% of the salary.
International teleworkers. Law 28/2022, of December 21, for the Promotion of the Ecosystem of Emerging Companies, introduced a new Visa and Permit - International Teleworker into Law 14/2013, of 27 September. Third-country nationals who are employed or self-employed by companies registered outside Spain and intend to provide professional services to non-Spanish companies from Spain using information and communication technologies are eligible to apply. International teleworking visa and permit holders will be prohibited from receiving remuneration from Spanish sources and performing work that generates revenue for Spanish entities.
Companies that wish to sponsor, and individuals who wish to apply for, a visa or residence permit must comply with the following requirements:
• Applicants must be highly qualified professionals who received a graduate or postgraduate degree from a university, vocational training institute or business school, or have at least three years of professional experience.
• Non-Spanish companies with which applicants have a “labor” (employment) or “professional” (self-employment) relationship must provide proof that they have operated as lawful businesses in good standing for at least one year and that the applicants can perform their activities (for example, deliver services) remotely from within Spain.
• In cases of self-employment, the digital nomad visa/permit holder will be allowed to work for a company located in Spain if the percentage of work does not exceed 20% of the total of his or her professional activity.
• Both employed and self-employed applicants must prove that they have been employed continuously (in the case of employed applicants) or maintained business relationships (in the case of self-employed applicants), with such companies for at least three months prior to filing their visa/permit applications.
• A certificate of social security coverage (if there is an agreement with the country of origin) or registration made by the foreign company to the Spanish social security authority with the commitment to register the employee before the start of work will be required.
• Proof of public or private health insurance is required. Travel insurance is not accepted (not necessary in the case of registration with the Spanish social security authority).
Other considerations. In general, this law establishes easier processes and shorter deadlines to obtain these types of residence visas and permits than under the normal immigration rules. As a result, the immigration process will be expedited for foreign companies and individual investors making investments and engaging in professional activities in Spain. The following are some of the advantages of the new types of permits in comparison with the permits established in the immigration law:
• The law provides for shorter processing times for obtaining the work or residence permit. The current processing times are 20 business days, while the regular procedure takes 30 business days.
• The law provides for shorter processing times when applying for the residence visa at a Spanish consulate overseas (should not exceed 10 business days).
• In some cases, bypassing the visa application process is possible if the work permit applicant is in Spain legally at the moment of the work permit application. This is determined on a case-by-case basis.
• Family applications can be made simultaneously with the principal application or at a later stage.
• The residence visa or permit allows work in any region within the Spanish territory.
The following are other measures in the law:
• At the time of renewal, the individual must not have stayed outside Spain for more than six months per year (except for investors).
• For the regulated professions, all academic qualifications and diplomas must be duly validated by the Spanish Ministry of Education.
• In some cases, the applicant or the dependents need to demonstrate that they have their own financial means (entrepreneur and investors).
I. Family and personal considerations
Family members. Family members must obtain residence permits if they intend to accompany a foreign national to Spain. The spouse’s children, child guardians and ancestors of the spouse are considered family members.
Driver’s permits. A foreign national may drive legally in Spain with his or her home country driver’s license for six months. Requirements for driver’s license reciprocity in Spain vary, depending on the country of origin of the foreign national.