Who can use it
- You have not been tax resident in Spain in the previous five years.
- You move to Spain because of a job with a Spanish employer or an assignment, as a company director (with limits on shareholding), as a digital nomad visa holder working remotely, or as an entrepreneur or highly qualified professional working for start-ups (the 2023 Startups Law widened eligibility).
- Family members (spouse and children under 25) can also join the regime in some cases.
How it works
- Spanish-source employment income: 24% up to €600,000, 47% above that.
- Most foreign income (for example rental income or dividends from abroad) is not taxed in Spain, unlike for normal residents.
- Capital gains and dividends from Spanish sources are taxed at the savings rates.
- You do not file the standard Spanish wealth declaration of foreign assets (Modelo 720) while in the regime.
How long
The year you become resident plus the following five years.
How to apply
File Modelo 149 with the tax agency within six months of registering with Spanish social security (or of starting the activity). Missing the deadline means losing the option.
Is it always better?
Not always. For lower incomes, normal progressive rates with allowances can come out lower. Get an adviser to run both calculations.
Official sources: Agencia Tributaria
