What’s the name for the annual income tax return in Spain?
Personal income tax is known as IRPF in Spain (Impuesto sobre la Renta de las Personas Físicas). Commonly shortened to la renta.
The annual income tax return is called la declaración de la renta.
This is a progressive tax: in other words, the more you earn, the more you pay.
This year, you must file your taxes for the previous financial year – that is to say, 2025. The campaign started on April 8th and runs until June 30th 2026.
Who needs to file a tax return?
The basic rule applied to determine residency when it comes to tax is the 183 days rule: “If you stay in Spain for more than 183 days during the calendar year," you are usually considered a tax resident here state Spain's Tax Agency (Agencia Tributaria).
You probably don't need to hand in a tax return if you earn less than €22,000 a year and you pay tax on your salary and your bank interest throughout the year.
But if you fall into any of the below categories then you should.
- You are employed and have an annual income over €22,000, as long as the total obtained from any further sources doesn’t exceed €1,500
- You are self-employed or have your own business
- Your income from yearly dividends, interest and capital gains exceeds €1,600
- You receive rental income over €1,000 per year
- It is the first year that you are filing a tax return in Spain
READ ALSO: Who has to do a tax declaration in Spain in 2026?
Do you have to pay tax on income earned outside Spain?
The simple answer is yes. If you are classed as a tax resident in Spain (that’s the 183-day rule again) you will be subject to Spanish tax on your worldwide income, and that includes income from rental properties overseas.
For people who split their time between two countries, authorities in both countries may examine their financial affairs to decide whether they are liable to pay tax in that country. Some countries have double taxation rules.
If you are not sure, consult a tax advisor, accountant, or financial planner.
If you're not a tax resident here, but do own a house in Spain, you may need to fill in what is known as a Form 210 (Modelo 210).
READ ALSO: What digital nomads need to know about Spain's annual income tax declaration
How to register as a taxpayer
You must register with the Agencia Tributaria, the Spanish tax authority, in order to pay tax in Spain regardless of whether you are a resident or non-resident.
To do this you will need your NIE, and fill out a Modelo 30 in order to register for the first time. You can also use this form if you need to change any personal details such as a change of address.
When is the Spanish tax year?
This is one thing that Spain makes simple. The tax year is the same as the calendar year which means it runs from 1st January to 31st December.
When do you file your annual tax return?
You must file your tax return for 2025 between April 8th-June 30th 2026.
The key dates are as follows:
- 8 April- 30 June 2026: online filing
- 6 May- 30 June 2026: by telephone
- 2 June- 30 June 2026: in person at its offices
How much tax will you have to pay?
In Spain, as in other countries, the percentage of tax you will have to pay is dependent on your level of income above a personal threshold of €5,550 (this means you don’t pay tax on the first €5,550 you earn annually). There is an extra €1,150 for those over 65 and a further €1,400 for those over 75.
According to the Spanish government website, the tax brackets for this year's renta declaration are as follows:
€0 - €12,450: 19 percent
€12,450 - €20,199: 24 percent
€20,200- €35,199: 30 percent
€35,200 - €59,999: 37 percent
€60,000 - €299,999: 45 percent
€300,000 and above: 47 percent
Note, these are estimates made by adding together the state and regional taxes, taking the rates applicable to non-resident taxpayers in Spain as a reference. For a more complete picture of your expected tax bill for the 2025 renta campaign, check your regional rates or consult a gestor.
READ ALSO: What does a 'gestor' do in Spain and why you'll need one
What allowances/deductions are there?
- Individual and Pensioner Allowances
As mentioned above, you are entitled to an Individual allowance of €5,550 tax free. That increases to €6,700 for those aged 65 and over and to €8,100 for over 75-year-olds.
- Capital Gains Tax Rates for 2025 renta
€0 - €6,000 - 19 percent
€6,000 - €50,000 - 21 percent
€50,000- €200,000 - 23 percent
€200,000 - €300,00 - 27 percent
+ €300,000 - 30 percent
- Disability Allowance
Grade 33 percent-65 percent disability - €3000
Grade 65 percent-100 percent disability - €9,000
An additional allowance of €3,000 if third-party care is needed
- Child Allowance
In Spain, child allowance can be claimed for children up to the age of 25 who live with you and earn less than €8,000.
First child - €2,400
Second child - €2,700
Third child - €4,000
Fourth & additional children - €4,500
Additional for child under 3 - €2,800
- Parental Allowance
Deductions are also given to those who have elderly parents living with them – either a mother or father with an income less than €8,000.
Over 65's - €1,150
Over 75's - an extra €1,400
Other deductions and tax allowances
You may also be able to claim deductions for the following based on your individual circumstance.
- Social security contributions
- Pension contributions
- Subscriptions to unions and professional societies of up to €500
- Legal defence fees up to €300
- Allowable work expenses of up to €2,000
- Some costs of renovating your main home
- Charitable donations
- Each autonomous community in Spain has its own regional tax deductions (read our articles on these for Valencia, Catalonia, Andalusia and Madrid)
Tax On Property Rentals
Tax on rental income for properties in Spain is charged at a flat rate of 19 percent up to €12,450 for those who reside in the EU, Norway and Iceland and 24 percent for those residing in all other countries.
Note that for EU residents, rental expenditures such as mortgage interest payments, I.B.I, utility bills and community fees are tax-deductible.
Corporate Tax
Generally speaking in Spain, corporation tax is 25 percent, depending on the type of business and fiscal residency rules.
Newly formed companies benefit from a reduced rate of company tax of just 15 percent for the first two years of business.
Couple allowances
If you are married, either in a heterosexual or same-sex marriage, you have the choice of being taxed separately or together.
The married couple's allowance (declaración conjunta) of €3,400 for the second taxpayer, in addition to the general threshold of €5,550 granted to the first taxpayer.
But work out the rate as individuals and together before making the decision as doesn’t always pay off to declare together.
READ ALSO: Is a joint or a separate tax return better if you're a couple in Spain?
It’s easy if you are employed and taxed at the source
The system is pretty straightforward if you are a salaried worker and your tax and social security contributions are taken at the source. You should be given a certificate of taxes withheld Certificado de Retenciones which calculates your annual contributions to add to the tax return.
How To Submit Your Spanish Tax Return
The website lists four ways of filing your tax return:
- Online
- Using the App
- By telephone
- In person at the tax office
The Agencia Tributaria has streamlined the process in recent years so it should be pretty straightforward, but the online system can get pretty clogged up right at the beginning of the filing period and again as the deadline approaches.
You can either process the application online or using the dedicated App designed for Android or iOS operating systems.
The Tax Office has prepared a YouTube tutorial to help guide you through the process.
Whichever system you choose, you will need to register with the Cl@ave PIN security system to allow you to access your personal data securely online. Get one either via the Agencia Tributaria page here or by booking a cita previa (appointment) at one of the many regional Tax Agency offices.
READ ALSO: Spanish bureaucracy explained: Saving time through the online Cl@ve system
If you don't want to do it online/App then there is the option of speaking to an adviser at the Tax Office who will talk you through the process.
You can do this by calling 901 200 345 or 91 535 68 13. Lines are operational Monday to Friday 9am to 7pm.
Or book a Cita Previa (private appointment) at the tax office and go down there in person. Although this service is only available between June 1st and June 30th. You can book your appointment online at the Agencia Tributaria website, by choosing which office you want to book it through or by calling 901 22 33 44 or 91 553 00 71.
What happens next?
If you are due any overpayment of tax, it will usually be credited directly to your bank account within one month of submitting your return.
Essential Information:
Spain's Tax Agency website HERE
READ ALSO: Self-employed in Spain - Seven ways to save money on your income tax return
Please note, reporters at The Local Spain are not financial experts. What we've learned, we've learned the hard way — by getting on the phone and listening to all those frustrating automated messages.
The information above is designed to help, but if you are unsure of what steps to get yourself in order tax-wise, seek professional advice.
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