Tax Information
If you live in Spain for more than 183 days in a calendar year, you are considered a Spanish tax resident. As a resident, you are required to pay taxes in Spain on your worldwide income.
Who Needs to File a Tax Return in Spain for 2025?
You must file a Spanish tax return if any of the following apply:
- Your employment income exceeds €22,000 annually (from a single payer).
- You earn over €1,000 annually in rental income.
- You have capital gains or investment income exceeding €1,600.
- You are self-employed (autónomo), regardless of income level.
⚠️ Note: Different thresholds may apply if you have multiple income sources or are subject to special tax regimes.
Updated Spanish Income Tax Rates for 2025
Spain uses a progressive tax system, meaning the more you earn, the higher the rate you pay on the next band of income. Here are the 2025 income tax brackets:
| Income Bracket (€) | Tax 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% |
If you are employed, your employer handles most of your social security contributions, with a smaller portion deducted from your salary. For self-employed individuals, a reduced social security payment of around €80 per month applies in the first year, increasing to €150 in the second year and to the full rate (approximately €280) by the third year. Self-employed workers also need to file VAT and income tax estimates quarterly, adjusting for any differences at the end of the year.
If you are American, you still must file your taxes in the US.