Spain Regional Tax Comparison >> Where Do Expats Pay Less Tax?

Why regional taxes matter when moving to Spain

Spain’s 17 Autonomous Communities have the power to adjust regional tax rates, exemptions, and deductions. In 2026, choosing where to live can have a meaningful impact on your overall tax position. Differences between regions such as Madrid and Catalonia, or Cantabria and Andalusia, can amount to many thousands of euros per year, even with identical income and assets.

2026 update: scope and methodology

This guide is a Spain regional tax comparison produced by the Moving to Spain research team, based on years of advising international clients who relocate, invest, and retire in Spain. It has been reviewed and updated for 2026 using the latest available national and regional tax frameworks.

Spain’s tax system operates at multiple levels. Some taxes are set nationally, others regionally or municipally, and headline rates alone rarely tell the full story. In practice, allowances, deductions, thresholds, and the interaction between different taxes often have a greater impact than the nominal percentage shown.

The Basque Country and Navarre operate under separate foral tax systems with extensive fiscal autonomy. Their tax regimes follow different legal frameworks and are not directly comparable with the rest of Spain. The Canary Islands are subject to a special economic and fiscal regime, including a different indirect tax system (IGIC instead of IVA). Unless specifically stated, the comparisons in this guide refer to Spain’s standard tax framework and exclude foral regimes.

All figures shown are illustrative and are not personalised calculations. Tax rules change regularly, and outcomes depend on individual circumstances. This guide is intended to provide comparative context rather than personal tax advice. For meaningful planning, consultation with a qualified Spanish tax specialist is essential.

This guide compares the main regional taxes — income, wealth, property, and inheritance — to help readers make a more informed decision about where to live in Spain. All figures shown are before deductions, financial planning, and tax structuring.

Read Also: Where To Live In Spain >> Insider Guide to Spain’s Regional Lifestyles

Personal Income Tax (IRPF) by Region (2026)

Spain’s Personal Income Tax (IRPF) consists of a state component and a regional component. Both apply to the same taxable base, but the rates and brackets differ by Autonomous Community.

While regional income tax differences do exist, income tax rates alone are rarely the decisive factor in overall tax liability. For most taxpayers, deductions, allowances, and planning opportunities have a greater impact than small variations in headline rates.

The income tax figures shown in this section do not include any deductions or personal allowances. As a result, they intentionally overstate real-world liabilities. These figures are included solely to illustrate relative differences between regions, not to represent what an individual taxpayer will actually pay.

Read Also: Personal Income Tax in Spain >> How La Renta Works (Rates, Incomes, Deductions, and more

Region	Min Rate	Max Rate	IRPF €50K	IRPF €100K	IRPF €250K
Andalusia	19%	47%	€ 14,300	€ 33,560	€ 104,200
Aragon	19%	50%	€ 14,800	€ 35,100	€ 110,300
Asturias	19.50%	50%	€ 14,900	€ 35,400	€ 110,500
Balearic Islands	18.50%	49.25%	€ 14,500	€ 34,500	€ 108,500
Canary Islands	18.50%	50.50%	€ 14,700	€ 35,100	€ 111,100
Cantabria	18%	49%	€ 14,300	€ 34,100	€ 107,800
Castile and León	18.50%	46%	€ 13,900	€ 32,800	€ 101,900
Castilla-La Mancha	19%	47%	€ 14,300	€ 33,600	€ 104,200
Catalonia	20%	50%	€ 15,100	€ 35,600	€ 110,800
Extremadura	17.50%	49.50%	€ 14,200	€ 34,100	€ 108,600
Galicia	18.50%	47%	€ 14,100	€ 33,300	€ 104,000
La Rioja	18.50%	51.50%	€ 14,500	€ 35,200	€ 112,600
Madrid	18%	45%	€ 13,600	€ 34,400	€ 99,700
Murcia	19%	47%	€ 14,500	€ 33,600	€ 104,200
Valencian Community	18.50%	54%	€ 15,300	€ 37,000	€ 118,100

Note: These figures are illustrative estimates for comparative purposes only. Actual tax liabilities depend on personal circumstances, deductions, allowances, and other factors. The figures do not consider additional region-specific allowances, personal circumstances, or itemized deductions. You WILL pay less than these figures!

The Basque Country and Navarra have a different tax system (foral) so we’ve put them in this separate table, but comparisons are much harder here!

Region	Min Rate	Max Rate	€50K	€150K	€250K
Basque Country	23%	49%	€ 15,000	€ 37,500	€ 112,000
Navarre	13%	52%	€ 13,000	€ 35,000	€ 105,000

Regional income tax rules change frequently. We recommend you always confirm current figures with official regional tax authorities or a qualified tax professional before making decisions. – Louis Williams, Cross Border Tax Expert

Wealth Tax (Impuesto Sobre el Patrimonio)

Wealth Tax is a significant factor for some Expats choosing where to live in Spain. But, again, for many people their net global assets mean Wealth Tax isn’t a significant issue, regardless of where you live. This tax applies to net global assets over €700,000 (with €300,000 residence exemption). Several regions now offer 100% relief, making wealth tax effectively zero in those Autonomous Communities.

Read Also: Wealth Tax and Solidarity Tax in Spain Explained

Region	Min Rate	Max Rate	Primary Residence Exemption	2026 Notes
Andalusia	0.24%	3.03%	€ 300,000	100% wealth tax relief for residents, zero effective tax
Aragon	0.20%	3.50%	€ 300,000	No special exemptions or reliefs
Asturias	0.22%	3.00%	€ 300,000	Standard national structure
Balearic Islands	0.28%	3.45%	€ 300,000	No regional reliefs, high rates on upper brackets
Canary Islands	0.20%	3.50%	€ 300,000	No additional regional relief
Cantabria	0.24%	3.03%	€ 300,000	100% relief < €3M; wealth above that still taxed
Castile and León	0.20%	2.50%	€ 300,000	One of the lowest max rates nationally
Castilla-La Mancha	0.20%	3.00%	€ 300,000	No special deductions or regional reliefs
Catalonia	0.21%	2.75%	€ 500,000	Lower personal allowance and home exemption; overall higher burden
Extremadura	0.30%	3.75%	€ 300,000	100% wealth tax relief for residents, zero effective tax
Galicia	0.20%	2.50%	€ 300,000	No special deductions or reliefs
La Rioja	0.20%	3.50%	€ 300,000	No regional reliefs or modifications
Madrid	0.00%	0.00%	€ 300,000	100% wealth tax relief for residents, zero effective tax
Murcia	0.24%	3.00%	€ 300,000	No special exemptions
Valencian Community	0.25%	3.12%	€ 300,000	Personal deduction increased to €1 million each for 2026.

Again, we’ve split out the Basque Country and Navarra.

Region	Min Rate	Max Rate	Primary Residence Exemption	2026 Notes
Basque Country	Varies	Varies	€800,000 (approx.)	Separate tax regime; exemptions and brackets differ by province
Navarre	Varies	Varies	€ 250,000	Own tax regime with lower exemption thresholds

Key Details for Wealth Tax

• National wealth tax rules apply unless otherwise noted. The threshold starts at €700,000 in net assets, with an additional exemption of €300,000 for your primary residence.
• Madrid, Andalusia, Extremadura, and Cantabria now apply full relief under regional law (with limits in Cantabria).
• the Valencian Community government increased the individual deduction to €1m and the primary residence deduction to €300K for 2026
• The Basque Country and Navarre have their own fiscal powers and use different exemptions, lower asset thresholds, and separate progression scales.
• Catalonia has the lowest exemption thresholds (only €500,000 total and a matching limit for primary residence).
• Spain’s Wealth tax is calculated progressively, with marginal rates applied across brackets from 0.2% to over 3.5%.

Don’t Forget: Solidarity Tax (National)

Spain’s Solidarity Tax (Impuesto Temporal de Solidaridad de las Grandes Fortunas), now extended on an indefinite basis (pending reform), applies to net wealth above:

• €3M — 1.7%
• €5M — 2.1%
• €10M+ — 3.5%

This tax applies nationwide, even in regions that grant 100% relief on standard wealth tax. There are significant deductions available and mechanisms like the 60% rule and the Beckham law that can mitigate this impact.

Spain Inheritance and Gift Tax by Region (2026)

If you pass away as a tax resident in Spain, Spanish taxes may apply to your estate.

Region	Tax-Free Allowance (Direct Relatives)	Relief / Reduction %	2026 Notes
Andalusia	€1,000,000	99%–100%	One of the most generous applies to spouses, children, and parents
Aragon	€500,000	Up to 65%	Complex deductions based on age and kinship
Asturias	€300,000	Low	One of the most burdensome regions for inheritance tax
Balearic Islands	€700,000	75%–99%	Sliding scale based on amount inherited and relationship
Basque Country	Varies (often >€400,000)	95%–100%	Separate fiscal regime; reliefs for spouses and children are very generous
Canary Islands	€1,000,000	99.9%	Extremely generous; nearly tax-free for direct relatives
Cantabria	€1,000,000	99%	Full reduction for Group I & II beneficiaries
Castile and León	€1,000,000	99%	Full reduction applies to close family members
Castilla-La Mancha	€300,000	100% up to €300K	80% reduction beyond this threshold
Catalonia	€100,000	Variable	Lower threshold but many deductions based on age, disability, etc.
Extremadura	€500,000	99%	Generous for spouses and children
Galicia	€1,000,000	99%	Progressive reductions; one of the best regimes in northern Spain
La Rioja	€1,000,000	99%	Reduction for close relatives maintained in 2026
Madrid	€1,000,000	99%	Consistently low tax region
Murcia	€1,000,000	99%	99% reduction for Group I & II applies
Navarre	€250,000–€400,000	99%	Own system; separate brackets and rates
Valencian Community	€100,000	99%	Relief for close relatives increased in recent years

VAT (IVA) and IGIC in Spain (2026)

In Spain, most goods and services are subject to Value Added Tax (VAT), known locally as IVA (Impuesto sobre el Valor Añadido). Although IVA is a national tax — not set by the regions — its impact still varies slightly depending on location, especially in the Canary Islands, which operate under a separate system called IGIC. There is no official announcement of changes to these core rates for 2026. Analysts discuss potential future adjustments (especially on reduced rates) but nothing has been enacted into law yet.

IVA Rates in Mainland Spain and the Balearics

Rate Type	IVA Rate	Applies To
Standard	21%	Most goods and services (e.g., electronics, clothing, consulting)
Reduced	10%	Food, hospitality, public transport, property purchases (new homes)
Super-Reduced	4%	Basic essentials: bread, milk, books, medicine

• New-build homes are subject to 10% IVA instead of ITP (transfer tax).
• IVA is included in the price of most goods and services, so you won’t typically notice it unless you are reclaiming as a business.

2026 Update: Mandatory e-Invoicing (VeriFactu). Spain is introducing VeriFactu, a mandatory electronic invoicing framework aimed at improving VAT compliance. Businesses and self-employed workers issuing VAT invoices will need certified invoicing software that creates tamper-proof records and, in some cases, transmits data to the Tax Agency (AEAT). AEAT published an official note that extended the adaptation deadlines via Real Decreto-ley 15/2025 to 2027.

In practice, this affects how VAT is invoiced and reported, not VAT rates themselves. Based on our experience working with businesses in Spain, the main impact is operational: systems and advisers must be ready well in advance to avoid compliance issues.

IGIC: VAT in the Canary Islands

The Canary Islands apply IGIC (Impuesto General Indirecto Canario) instead of IVA.

Rate Type	IGIC Rate	Applies To
Standard	7%	Most goods and services
Reduced	3%	Certain basic goods and services
Zero Rate	0%	Healthcare, education, certain exports

• New property purchases in the Canaries typically incur 7% IGIC + 1% stamp duty, significantly lower than mainland equivalents.
• Businesses in the Canaries must register separately for IGIC compliance.

Note for Expats and digital nomads: If you’re self-employed (autónomo), understanding whether you charge IVA or IGIC — and how to account for it — is essential for compliance and tax filings.

Property Tax Rates in Spain

Read Also: How To Buy A Property In Spain >> Step-by-Step Guide

ITP For Existing Homes

​If you buy an existing property in Spain, buyers are subject to the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP). This tax is levied by each Autonomous Community (AC), resulting in varying rates across the country. Below is an updated overview of the ITP rates for 2026 across all 17 ACs:​

Autonomous Community	Standard ITP Rate	Notes
Andalusia	7%	Standard rate applies to most property transactions. The reduced 2% ITP regime (often used by professional investors) is now subject to stricter conditions in 2026: only available on properties valued up to €500,000, and the resale holding period to retain the reduction has been cut to 2 years (from 5).
Aragon	8%	No recent changes reported.
Asturias	8%	Standard rate for property transfers.
Balearic Islands	8%–11%	Progressive rates based on property value; higher-value properties incur higher rates.
Basque Country	4%	One of the lowest rates; favorable for buyers. Those are foral and can vary by province.
Canary Islands	6.5%	Standard rate for resale properties.
Cantabria	10%*	Standard rate applies. Under the 2026 regional budget, ITP for habitual residence purchases up to €300,000 could be reduced to around 7%, a targeted relief for non-luxury buyers.
Castile and León	8%–10%	The standard rate applies; no recent changes have been reported.
Castilla-La Mancha	9%	Standard rate for property transfers.
Catalonia	10%	Standard rate applies. Catalonia applies a 20% ITP rate for “large holders” — defined as individuals or entities owning multiple residential properties or entire residential buildings.
Extremadura	8%	Standard rate for property transactions.
Galicia	7%	Standard rate; significant reductions available for large families.
La Rioja	7%	Standard rate applies.
Madrid	6%	Rates vary depending on specific criteria; the standard rate is 6%.
Murcia	8%	Standard rate for property transfers.
Navarre	6%	Those are foral and Navarra has its own rules. Favorable rate compared to many other regions.
Valencian Community	9%	Standard rate applies (down to 9% in 2026). Properties over €1,000,000 will continue to be taxed at 11%.

Important: Go beyond the headline tax rates. Here are some practical things to keep in mind when it comes to ITP (property transfer tax):

• You might qualify for a lower rate:
  Several regions offer reduced ITP rates if you meet certain conditions, such as being a first-time buyer, under a certain age, or part of a large family (familia numerosa). For instance, Galicia offers notable discounts for large families, and other communities may offer reduced rates for permanent residents.
• It’s not just the purchase price that counts:
  The ITP is usually calculated on the higher of either the purchase price or the reference value (Valor de Referencia) assigned by the regional authorities. This means that even if you get a great deal on a property, the tax office might calculate your ITP based on a higher official value — something that surprises many buyers.

IVA and AJD on new builds

Value Added Tax (VAT / IVA)

New residential properties are subject to Value Added Tax (IVA) at a standard rate of 10% of the purchase price. This rate is consistent across mainland Spain and the Balearic Islands. However, in the Canary Islands, the equivalent tax, known as IGIC (Impuesto General Indirecto Canario), is applied at a reduced rate of 7%. ​Idealista

Stamp Duty (Impuesto sobre Actos Jurídicos Documentados – AJD)

In addition to VAT, buyers of new builds must pay the Stamp Duty (AJD), which varies by Autonomous Community. This tax typically ranges from 0.5% to 1.5% of the property’s purchase price. Many regions have reduced AJD for protected groups, VPO, young buyers, etc. and AJD base can differ by deed type (deed value / mortgage deed, etc.)

Autonomous Community	AJD Rate
Andalucía	1.2%
Aragón	1.5%
Asturias	1.2%
Balearic Islands	1.2%
Canary Islands	1.0%
Cantabria	1.5%
Castilla-La Mancha	1.5%
Castilla y León	1.5%
Catalonia	1.5%
Ceuta	0.5%
Madrid	0.75%
Valencian Community	1.5%
Extremadura	1.5%
Galicia	1.5%
La Rioja	1.0%
Melilla	0.5%
Murcia	1.5%
Navarre	0.5%
Basque Country	0.5%

Proposed 100% Property Tax on Non-resident, Non-EU buyers

There’s been a lot of buzz around Spain’s proposed 100% tax on property purchases by non-EU buyers. This is still just a proposal, but if it ever passes parliament, it will not affect anyone who is a resident of Spain, regardless of their nationality.

The proposed measure is aimed solely at non-resident, non-EU buyers who don’t live in Spain. So, if you’re already living in Spain (or planning to move here and become a resident) this won’t impact you.

Municipal Property Tax (Impuesto sobre Bienes Inmuebles or IBI)

The Impuesto sobre Bienes Inmuebles (IBI), also known as the real estate tax, is a municipal property tax levied annually in Spain on all property owners. It is managed and collected by each individual municipality, with the funds used primarily to finance local public services. So, this tax varies by municipality, not by autonomous community. It means it’s very hard to give you an easy answer on where the rates are lowest.

Calculation of IBI

The amount payable is based on:

Municipal Rate (Tipo Impositivo):
Each municipality sets its own rate, usually ranging between 0.4% to 1.3% of the cadastral value. More urbanized and popular areas usually impose higher rates.

Registered Property Value (Valor Catastral):
Determined by the local property registry (Catastro), the cadastral value generally reflects the property’s assessed value, taking into consideration the land value, location, property characteristics, age, condition, and local market factors. Typically, the cadastral value is lower than the market value, often between 40%-60% of the actual market price.

How to find out the IBI rate for your municipality

1) Directly from the Municipality (Ayuntamiento):

• Visit in Person:
  Go directly to the local Ayuntamiento (city hall) and request the current IBI details for your property.
• Online Consultation:
  Many municipalities offer online portals (Sede Electrónica) where you can access property tax details:
  • Search online: “Sede Electrónica [Municipality Name] IBI consulta”

2) Check the Registry:

• Visit the official SEDE website.

Some examples of IBI examples observed in past ordinances. Remember, this is at the municipal level (Ayuntamiento).

• Torrevieja 0.40%
• Orihuela Costa 0.695%
• Denia 1.05%

Remember: Cadastral value updates that underpin the IBI base continue to be rolled out across municipalities. Where cadastral values rise, IBI bills may increase even if the rate stays the same. This is a recurring structural issue rather than a specific 2026 “rate change.

Autonomo and Social Security Rates

If you are working for yourself in Spain, you’ll probably use an Autonomo. Social security rates for autonomos are set nationally and are progressive depending on your earnings. You’ll generally pay less in the early years of your autonomo registration and more later on.

The Spanish Government confirmed that the monthly Social Security contributions (cuotas) paid by autónomos will remain unchanged in 2026 compared with 2025 under the current income-based system. This freeze was approved by the Council of Ministers as part of a broader “escudo social” package.

Also, the Tarifa plana continues: Reduced €80/month rate for eligible new autónomos remains available with income conditions.

Please note that in many cases, autonomous communities and regions have provided relief for this payment. Speak to your Spanish tax expert to understand if you can benefit. Here are some examples:

Aragón: IN 2026, new autónomos in Aragón can apply for the “cuota cero” initiative, which allows you to recover up to €960 per year in social security contributions to ease your startup phase.

Castilla-La Mancha: The regional government has rolled out “Tarifa Plana Plus” — covering up to two years of your cuota (social security payment) for new autónomos. They’ve earmarked €9.5 million for this, aiming to help around 8,000 people.

Extremadura: If you’re a digital nomad or remote worker, Extremadura is offering grants of €8,000–€15,000 to attract individuals who will live and work there for at least two years. You must not have lived in the region for the previous 6 months.

Madrid & Andalusia: Both of these regions have previously offered a zero-fee first year for new autónomos and are likely to continue similar incentives in 2026. These programs reduce your initial social security burden while you’re getting established.

What does Mbappé mean for Madrid Taxes — and Who can Benefit

Recent reporting notes that Madrid in particular, is attracting a small number of high-earning professionals and executives relocating from the UK to Spain and elsewhere, in part because of tax advantages tied to certain Spanish tax regimes and regional incentives that can reduce effective liabilities for a narrow profile of taxpayers.

Madrid’s ‘Mbappé Law’ (Law 4/2024) is a tax incentive offering a 20% Personal Income Tax (IRPF) deduction for new residents who move to the Community of Madrid and invest in qualifying assets like bonds or shares.

Wealthy individuals with substantial income or specific compensation types may find Madrid’s relatively lower regional income tax burden and combined national/regional position appealing compared with higher-tax regions, but this advantage applies to only a limited group of high-net-worth or highly mobile taxpayers, not to the vast majority of Expats or residents.

How the Beckham Law Can Affect Expats’ Tax in Spain

Spain’s Beckham Law (officially the Special Tax Regime for Inbound Workers under Article 93 of the Personal Income Tax Act) is a special expatriate tax regime for people who move their tax residence to Spain for employment or professional reasons. Qualifying individuals can elect to be taxed as non-residents, meaning they pay a flat rate of 24% on Spanish-sourced employment income up to €600,000 per year, with income above that subject to the standard top rate, rather than Spain’s normal progressive rates that can exceed 45% when combined with regional supplements.

For eligible of high-earning mobile professionals, this can materially reduce Spanish income tax and change an individual’s regional income tax profile.

Does This Spain Regional Tax Comparison Impact Your Planning?

We believe that lifestyle and tax are the two most significant factors to consider before making a move. This guide provides detailed information on the tax rate differences between Spain’s 17 autonomous communities. However, no article can provide you with detailed guidance on how this will affect your personal finances. To understand that, you’ll need to speak with experts who explore your needs and provide you with the personalised advice you need. Our Plan Your Spain Move Packages provide access to everything you need to make an informed decision.

Glossary of Spanish Tax Terms (2026)

Term	Spanish Term	Description	Learn More
Income Tax	Impuesto sobre la Renta de las Personas Físicas (IRPF)	Annual progressive tax on worldwide income for Spanish residents.	Personal Income Tax – La Renta
Wealth Tax	Impuesto sobre el Patrimonio	Annual tax on net assets over €700,000 (with regional reliefs or exemptions).	Wealth Tax Guide
Solidarity Tax	Impuesto Temporal de Solidaridad de las Grandes Fortunas	A national tax on net wealth exceeding €3 million applies regardless of regional wealth tax reliefs.	Wealth Tax Guide
Inheritance Tax	Impuesto sobre Sucesiones	Tax on assets inherited. Rates and allowances vary by region and relationship to the deceased.	Spanish Tax System Overview
Gift Tax	Impuesto sobre Donaciones	Tax on gifts received, similar to inheritance tax.	Spanish Tax System Overview
Transfer Tax	Impuesto sobre Transmisiones Patrimoniales (ITP)	Tax on purchasing resale properties. Set regionally (ranges from 4% to 11%).	Buying Property in Spain
VAT on New Builds	Impuesto sobre el Valor Añadido (IVA)	10% VAT on newly built residential properties (21% on commercial).	Buying Property in Spain
Canary Islands VAT	Impuesto General Indirecto Canario (IGIC)	7% VAT-equivalent used in the Canary Islands instead of IVA.	Living In The Canary Islands
Stamp Duty	Actos Jurídicos Documentados (AJD)	Tax on notarised documents, often paid during new property purchases (0.5%–1.5%).	Buying Property in Spain
Property Tax (Annual)	Impuesto sobre Bienes Inmuebles (IBI)	Annual municipal tax based on cadastral property value.	Buying Property in Spain
Beckham Law	Régimen fiscal aplicable a los trabajadores desplazados	Flat 24% tax rate for qualifying foreign workers for up to 6 years. Applies only to Spanish-sourced income.	Beckham Law Explained
Autónomo	Autónomo / Trabajador por cuenta propia	Self-employed individual in Spain, responsible for income tax and social security.	Becoming an Autónomo
Social Security (Self-Employed)	Cotización a la Seguridad Social	Monthly contributions based on actual earnings (€200–€598/month in 2026).	Spanish Tax System Overview
Valor de Referencia	Valor de Referencia Catastral	Reference property value set by tax authorities. ITP and AJD may be based on this even if market price is lower.	Buying Property in Spain

FAQ >> Spain Regional Tax Comparison By Autonomous Community