Taxes in Spain can be complicated, and even more so if you’ve got residency here through the Non-Lucrative Visa. Here’s what you need to know about the taxes you may have pay and how much it could be.
As the name suggests, Spain’s Non-Lucrative Visa or NLV gives you residency in Spain, under the condition that you’re not allowed to work.
The government has expressly clarified that this means no working for companies within Spain as well as no remote work for companies outside of Spain and no self-employed work either.
Yet, you are still required to pay taxes in Spain, even if you’re not working, a topic which confuses many applicants, particularly when it comes to which taxes and how much.
READ ALSO: Do I have to pay tax in Spain on the non-lucrative visa?
In order to be eligible for the NLV you prove you have to have a substantial amount of savings or receive a certain amount of passive income to be able to support yourself here. This is 400 times the amount of the IPREM which for 2025 is €2,400 per month in passive income or savings of €28,800 for the year.
This could be in the form of a pension from abroad, passive income from renting out a property you own abroad, savings in your bank account or returns on investments for example.
Spanish law states that if you’re resident in Spain, which you will be if you’re here on the NLV and stay for more than 183 days, you must pay income tax on your worldwide income and capital gains.
Tax laws can be complicated though, so always make sure you consult a professional, because even if you’re here less than 183 days but your partner and children live here full time, this could also make you a tax resident.
So what taxes do you have to pay as a resident in Spain on the NLV?
READ ALSO: What Non-Lucrative Visa holders should know about Spain’s annual tax declaration
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Personal income tax
You will be liable to pay personal income tax or IRPF on all your global income when you’re a tax resident in Spain. This means any passive income from pensions, investments, rental income etc. The tax system is progressive, so the more you earn, the higher the tax rate you’ll pay. This ranges from 19 to 45 percent.
- Up to €12,450: 19 percent
- €12,451 – €20,200: 24 percent
- €20,201 – €35,200: 30 percent
- €35,201 – €60,000: 37 percent
- €60,001 – €300,000: 45 percent
- Over €300,000: 47 percent
If you make any interest on savings or have any capital gains, they will be taxed at the following rates.
- 19 percent for the first €6,000 of taxable income
- 21 percent for the following €6,000 to €50,000
- 23 percent for the next €50,000 to €200,000
- 27 percent €200,000 to €300,000
- 28 percent for any amounts over €300,000.
You will declare all these amounts on the yearly Declaración de la Renta income tax return.
READ ALSO – June 30th deadline: What happens if I don’t file my Spanish tax return?
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Wealth tax
As well as personal income tax, you could also have to pay wealth tax if you’re here on the NLV. It’s an annual tax, which must be paid on total net value of your assets held on December 31st of the previous year.
Not everyone pays this tax though. You are required to pay it in one of two cases. The first is after applying for regional allowances, the net result is positive and the second is if the total gross value of your assets exceeds €2 million.
This could be a combination of properties, bank accounts, investments, and other assets, both in Spain and abroad.
Most importantly though, the amount of wealth tax you pay depends on where you live in Spain, so if you have lots of assets it may be worth thinking very carefully about where you plan on living.
For example, Madrid, Extremadura, Andalusia and Cantabria have 100 percent wealth tax relief, that means essentially, you’ll pay nothing in wealth tax in these regions. If you choose to live in Catalonia though, you could end up paying a lot.
READ ALSO: Everything you need to know about Spain’s wealth tax
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Declaration of foreign assets
This last one is not a tax, but it does mean that you must declare all of your foreign assets abroad if they exceed €50,000. This could be properties as well as savings in bank accounts for example.
You have to do this using Modelo or Form 720 which is due on March 31st about the total assets held on the previous December 31st.
You only have to complete this form once, unless your assets abroad increase by more than €20,000 then you will have to fill it out again and inform the authorities of your new total.
This is simply an informative document, you are not required to pay any tax on it.
Double tax treaties
Sometimes your savings and passive income may be taxable by your home country, as well as in Spain, so it’s important to be aware of any double tax treaties held between the two countries. If these are in place, it means that you won’t have to pay tax twice on the same income in both countries and could significantly help lower your tax burden.
As you can see here on Spain’s Agencia Tributaria page, Spain has signed treaties with practically all countries.
