Before you start

NIE
A determination of whether you are tax resident for the year
Records of worldwide income and foreign assets
A digital certificate or Cl@ve credentials for the Agencia Tributaria

Step-by-step

1
Work out whether you are tax resident, and from when
More than 183 days in a calendar year makes you resident, as does having your centre of economic interests in Spain. Spanish residency is assessed for the whole calendar year rather than pro-rated, which produces surprising results for people arriving mid-year. Establish your position before your first filing.
OnlineWho: You
2
Understand that half of your income tax is regional
IRPF combines a state scale with an autonomous community scale, and the Comunitat Valenciana sets its own. The same gross salary produces a different net in Valencia, Madrid and Bilbao. Comparisons of Spanish cities that quote a single national rate are simply wrong.
OnlineWho: You
3
Check your wealth tax position
Spain's wealth tax is levied on net assets above an exempt minimum, with a state-set design that regions can modify. Madrid and Andalusia rebate it entirely; the Comunitat Valenciana does not, but Ley 5/2025 raised its exempt minimum from EUR 500,000 to EUR 1,000,000 from the 31 December 2025 accrual, with the main home exempt separately. Thresholds and rebates are changed by regional law fairly often — check the current Generalitat figure rather than a number you read last year.
In personWho: You
4
File the Modelo 720 if you hold foreign assets
Tax residents must report overseas accounts, securities and property above a threshold in each of three categories. It is an information return, not a tax, but it has its own deadline and it is the most common serious compliance failure among new residents.
OnlineWho: You
5
Decide on the impatriate regime inside its window
The régimen especial for displaced workers — the Beckham Law — taxes Spanish employment income at a flat rate rather than the progressive scale for a limited number of years, and was extended to people arriving under the digital nomad route. It must be elected within a strict period after social security registration and it is not easily reversed. It favours higher earners and can be worse for lower ones.
OnlineWho: YouWithin the statutory window
6
File the annual Renta between April and June
The declaration for the previous calendar year is filed in the spring window. The Agencia Tributaria produces a draft — the borrador — which is often accurate for simple employment cases and materially wrong for anyone with foreign income. Do not simply confirm it without checking.
OnlineWho: YouApril–June annually

Documents you’ll need

NIE
Certificado digital or Cl@ve credentials
Employment income certificates from Spanish employers
Records of all worldwide income and foreign accounts
Documentation of foreign property and securities, for the Modelo 720

Things most newcomers don’t know

Half of Spanish income tax is regional, so 'the Spanish rate' does not exist.

IRPF is a state scale plus an autonomous community scale, and each region sets its own. The same gross salary yields a different net in Valencia, Madrid, Seville and Bilbao — and Bilbao is different again because the Basque Country runs an entirely separate foral system. Any comparison of Spanish cities that quotes one national figure is wrong in a way that matters at higher incomes.

Source: Agencia Tributaria

Valencia charges wealth tax where Madrid and Andalusia do not — but the threshold doubled in 2025.

The wealth tax is designed nationally but regions can rebate it, and Madrid and Andalusia rebate it in full while the Comunitat Valenciana applies it. Ley 5/2025 raised the Valencian exempt minimum from EUR 500,000 to EUR 1,000,000 from the 31 December 2025 accrual, which lifts most relocating professionals out of scope entirely and makes the older comparisons misleading. For genuinely large estates the difference between Valencia and Málaga is still real; for a salaried arrival the regional income tax scale matters far more.

Source: Generalitat Valenciana / Agencia Tributaria

Spanish tax residency is worldwide and is assessed for the whole year.

Once you cross the 183-day threshold, Spain taxes your global income for that entire calendar year rather than from your arrival date. Someone arriving in May with substantial income earned abroad in January to April can find that income falling into the Spanish net. Model the arrival date deliberately if you have significant pre-move income — the difference between arriving in June and arriving in July can be very large.

Source: Agencia Tributaria

The borrador is a draft, not an answer.

The Agencia Tributaria pre-fills a return from the data it already holds, and for a straightforward Spanish salary it is usually right. It knows nothing about foreign accounts, overseas rental income or assets abroad. Confirming the draft unchanged when you have foreign income is a common and expensive mistake among new residents.

Source: Agencia Tributaria

Common mistakes to avoid

Assuming a single national income tax rate and ignoring the Valencian regional scale.
Working from a stale Valencian wealth tax threshold — the exempt minimum doubled to EUR 1,000,000 from the 2025 accrual.
Missing the Modelo 720 foreign-asset declaration in your first year as a tax resident.
Confirming the borrador unchanged when you have foreign income.
Missing the strict window to elect the impatriate regime.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.