Spain · Tax & Finance

Spain taxes
your worldwide income.

Spend 183+ days a year in Spain and you're a Spanish tax resident — and if you hold a non-lucrative visa, the renewal rules now force that. Here's what that means for your Social Security, IRA, 401(k), CPP or RRIF, in 2026 numbers.

Last verified: 8 July 2026

When you become a Spanish tax resident

You're resident for a tax year if you spend more than 183 days in Spain during the calendar year (sporadic absences count as days in Spain unless you prove tax residence elsewhere with a certificate), or if your centre of economic interests is in Spain. There's a rebuttable presumption if your spouse and minor children live here. Residents are taxed on worldwide income for the whole year — Spain has no split-year treatment, so the timing of your move matters. Note the trap: the non-lucrative visa's renewal rule requires 183+ days of real residence, so every NLV holder is a tax resident by design.

The 2026 rates

No 2026 budget passed, so the prior scales roll over. General income (pensions included) is taxed on a progressive scale set half by the state, half by your region — combined rates run roughly 19% to 47% where regions mirror the reference scale, with real top rates ranging about 43–54% by region (Madrid at the low end; Valencia and Catalonia at the high end). Savings income (interest, dividends, capital gains) has its own national scale:

Savings income band (2026)Rate
Up to €6,00019%
€6,000 – €50,00021%
€50,000 – €200,00023%
€200,000 – €300,00027%
Above €300,00030% (raised from 28% in 2025)
Region matters. Half of the general scale is set by your comunidad autónoma, so the same pension is taxed differently in Madrid than in Valencia. Exact combined tables sit in each region's own law — treat any single "Spain tax rate" figure with suspicion.

Your retirement income under the treaties

The US–Spain treaty (1990, protocol 2019) and Canada–Spain treaty (1976, protocol 2015) decide who taxes what. The short, unpopular version: as a Spanish resident, most of your retirement income is Spain-taxable.

IncomeTreaty position for Spain residentsPractical effect
IRA / 401(k) / US private pensionsTaxable only in the residence state (Art. 20.1(a))Spain taxes at progressive IRPF rates. The US still taxes its citizens (saving clause) — relief then falls on the US side. Never assume "it's taxed in the US"
US Social SecurityUS may tax; Spain also taxes with a double-taxation deduction (Art. 20.1(b))Both sides involved. AEAT states that US tax levied purely on the citizenship basis does not generate a Spanish credit — cross-border advice essential
US government pensionsTaxable only in the US, unless you're a Spanish national resident in Spain (Art. 21.2)Exempt in Spain but counted for your rate (exemption with progression)
Roth IRANo treaty, IRS or AEAT guidance; Spain doesn't recognise its tax-free status by statuteGenuine grey area — rulings are case-by-case. Professional advice essential before any withdrawal
CPP / OASNot taxable in Spain so long as not subject to Canadian tax (Art. XVIII.4(a)) — but Canada applies non-resident withholdingIn practice Spain taxes with a foreign tax credit. Complex — get advice
Periodic pensions / RRIF payments (Canada)Canada may tax, capped at 15% on periodic payments (Art. XVIII); lump sums (e.g. full RRSP withdrawals) stay at the 25% defaultSpain taxes as resident with credit for the Canadian tax. Whether RRSP/RRIF internal growth is sheltered in Spain has no official guidance
Credit mechanics. Spain relieves double taxation via the deducción por doble imposición internacional (art. 80 LIRPF); the US side runs through Form 1116 foreign tax credits and treaty re-sourcing — the Foreign Earned Income Exclusion covers earned income only, so it's useless for pensions. This is the single most advice-worthy area of a move to Spain: price a cross-border tax professional into your budget.

The Beckham regime — 24%, but not for retirees

Spain's impatriate regime (art. 93 LIRPF) taxes Spanish employment income at a flat 24% up to €600,000 (47% above) for the year of arrival plus five more, with foreign income largely out of scope, wealth taxes limited to Spanish assets, and no Modelo 720 filing. It's open to employees — explicitly including digital-nomad-visa holders working remotely for foreign employers — plus directors, entrepreneurs and qualifying professionals, if you haven't been Spanish resident in the prior 5 years. Retirees and passive-income earners do not qualify: a work or entrepreneurial trigger is mandatory. If someone is selling you "Beckham for your pension", walk away.

Wealth tax, the solidarity tax, and Modelo 720

In this section

Guides

Coming soon

How Spain taxes your Social Security, IRA and 401(k)

The treaty walkthrough for Americans — article by article, with the credit mechanics.

Coming soon

CPP, OAS and RRIFs in Spain

The Canada–Spain treaty, the 15% withholding cap, and the RRSP grey areas.

Coming soon

Modelo 720, line by line

What counts, the €50,000 thresholds, and how to file without drama.

Sources

  1. Agencia Tributaria — tax residents with US income (residency test, SS treatment, credits): sede.agenciatributaria.gob.es · LIRPF art. 9: boe.es
  2. Agencia Tributaria — general and savings scales (Manual Renta): sede.agenciatributaria.gob.es
  3. US–Spain tax treaty and 2019 protocol — IRS: irs.gov · foreign tax credit: irs.gov
  4. Canada–Spain tax treaty (Art. XVIII pensions): treaty-accord.gc.ca · 2015 protocol: canada.ca
  5. Beckham regime — Agencia Tributaria impatriates manual: sede.agenciatributaria.gob.es
  6. Wealth tax — Ley 19/1991: boe.es · solidarity tax — Ley 38/2022: boe.es + AEAT ITSGF page: sede.agenciatributaria.gob.es
  7. Modelo 720 — AEAT FAQ: sede.agenciatributaria.gob.es
  8. US–Spain totalization agreement — SSA: ssa.gov
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