Tax in Spain for Expat Families

For the full overview, see where to live on the Costa del Sol with kids.

Understanding Spanish tax is essential for families relocating to the Costa del Sol — and it's one of the most confusing aspects of the move. This guide covers income tax brackets, the Beckham Law, wealth tax, residency triggers, and the common mistakes expat families make.

Income tax for residents

Spanish income tax is progressive, from 19% to 47%. If you spend more than 183 days per year in Spain, you're a tax resident and taxed on worldwide income. Double taxation treaties with most EU countries prevent you from being taxed twice.

The Beckham Law

Qualifying newcomers can apply for a flat 24% income tax rate on Spanish-sourced income for up to 6 years. This can represent significant savings for higher earners. Not all families qualify — seek professional advice before assuming eligibility.

Common mistakes to avoid

Not declaring overseas assets (Modelo 720), assuming you can remain tax-resident elsewhere, and underestimating social security contributions for the self-employed. Professional tax advice typically costs €300–€600/year. See salary needed for budget context. This is a practical overview, not personal tax or legal advice.