Home › Spain Tax Guide for UK Expats
Important: This guide provides general information only. Spanish and UK tax law is complex and your personal situation will affect what applies to you. Always seek advice from a qualified tax adviser before making decisions.
When Do You Become a Spanish Tax Resident?
You become a Spanish tax resident if any of the following apply:
- You spend more than 183 days in Spain during a calendar year
- Your main centre of economic interests is in Spain (where you earn the majority of your income)
- Your spouse or dependent children habitually reside in Spain
As a Spanish tax resident, you are required to declare your worldwide income to the Spanish tax authority (Agencia Tributaria, or AEAT) each year — not just income earned in Spain. The main tax year in Spain follows the calendar year (1 January – 31 December).
Spanish Income Tax (IRPF) Rates
Spanish income tax — IRPF (Impuesto sobre la Renta de las Personas Físicas) — is levied at progressive rates. The national rates below apply to general income (employment, self-employment, rental income). Regional autonomous communities add their own rates, so your total effective rate depends on where you live in Spain.
| Taxable Income | National Rate |
|---|---|
| Up to €12,450 | 19% |
| €12,450 – €20,200 | 24% |
| €20,200 – €35,200 | 30% |
| €35,200 – €60,000 | 37% |
| €60,000 – €300,000 | 45% |
| Over €300,000 | 47% |
Investment income (dividends, interest, capital gains) is taxed at a separate savings rate: 19% up to €6,000; 21% €6,000–€50,000; 23% €50,000–€200,000; 27% €200,000–€300,000; 28% above €300,000.
UK Pensions and Income in Spain
How your UK income is taxed in Spain depends on its source. The key rules under the UK-Spain Double Taxation Convention (2013):
UK State Pension
The UK State Pension is generally taxed only in the UK as a social security payment — not in Spain. However, you must still declare it on your Spanish tax return as it may affect your tax band calculations. Tax paid in the UK is credited against any Spanish liability.
UK Private and Occupational Pensions
Private pensions and most occupational pensions (employer schemes) are taxable in Spain as your country of residence. If you were previously taxed in the UK on these, a credit system applies — you should not pay tax twice. Getting advice from a cross-border tax specialist is strongly recommended.
UK Government (Public Sector) Pensions
Pensions from UK government employment — NHS, civil service, armed forces, local authority, teachers — are taxable only in the UK, regardless of where you live. Spain cannot tax them, but they must still be declared on your Spanish tax return.
UK Rental Income
Income from UK property is taxable in both countries, but Spain will credit the UK tax paid. You must declare it in Spain and may have a residual Spanish tax liability after the credit.
The UK-Spain Double Taxation Agreement
The UK-Spain Double Taxation Convention (updated 2013) ensures you do not pay full tax on the same income in both countries. Key principles:
- The treaty allocates taxing rights based on income type (pensions, employment, dividends, property)
- Tax paid in one country is creditable against tax owed in the other
- You still need to file in Spain even if income is taxed in the UK
- The treaty does not eliminate all Spanish tax — it prevents double taxation, not all taxation
The Beckham Law — A Tax Alternative for Higher Earners
If you are moving to Spain to work (including remotely) and have not been a Spanish tax resident in the previous 5 years, you may qualify for the Beckham Law (Régimen Especial de Impatriados). This offers:
- A flat 24% tax rate on Spanish-source income up to €600,000
- No obligation to declare worldwide income for up to 6 years
- Significant savings for those earning above ~€60,000/year
You must apply within 6 months of registering with Spanish social security. Read our full Beckham Law guide →
Overseas Asset Declaration — Modelo 720
As a Spanish tax resident with overseas assets (bank accounts, investments, property) worth more than €50,000 per category, you must file Modelo 720 by 31 March each year. Categories are: bank accounts, securities/investments, and real estate.
Failure to declare, or declaring incorrectly, can result in significant fines. This affects most UK expats who retain UK bank accounts or property.
Notifying HMRC When You Leave the UK
When you move to Spain, you should:
- Complete form P85 (Leaving the UK — getting your tax right) via HMRC online or post
- Notify your UK pension provider of your new Spanish address
- Apply for a Spanish tax identification number (NIF) — for most expats, this is the same as your NIE
- Consider registering with a Spanish gestora (tax agent) for your first year's return
You may receive a UK tax refund for the tax year in which you left, depending on when you departed.
Filing Your Spanish Tax Return
Spanish residents with taxable income above certain thresholds must file an annual declaración de la renta (IRPF return). The filing window is typically April to June for the previous calendar year. You can file online via the AEAT (Agencia Tributaria) website or use a Spanish gestora or accountant.
Questions Answered
When do I become a Spanish tax resident?
Do I pay tax on my UK pension in Spain?
What is the UK-Spain double taxation agreement?
How much is income tax in Spain?
Do I need to notify HMRC when I move to Spain?
What is Modelo 720?
Can I reduce my Spanish tax with the Beckham Law?
Get Personalised Tax Advice
Spanish tax for UK expats is complex and your personal situation matters enormously — pension type, income level, visa route, and where in Spain you live all affect your position. agrin.uk works with qualified advisers who specialise in UK-Spain cross-border tax.
Speak to a Tax Specialist →