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

Why do regional taxes matter when moving to Spain? Spain’s 17 Autonomous Communities (ACs) can adjust regional tax rates, exemptions, and deductions. In 2025, differences between regions like Madrid and Catalonia or Basque Country and Andalusia can mean thousands of euros in yearly tax differences. If you’re moving to Spain — especially as a retiree, remote worker, or property buyer — the region you choose can affect your net income, wealth tax, inheritance planning, and property costs.

This guide compares all significant regional taxes — income, wealth, property, and inheritance — so you can make the best financial decision about where to live.

MOST IMPORTANT: These tax rates are before deductions, financial planning, and tax structuring. Speaking to a qualified Spanish tax specialist can help build a meaningful Spain regional tax comparison for you.

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

Personal income tax (IRPF) by region (2025)

Each region sets its own rates for the regional portion of IRPF, which is a progressive income tax. These are the minimum and maximum rates as well as estimated tax burdens for incomes of €50,000, €150,000, and €250,000 (before deductions, etc).

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

Region	Min Rate	Max Rate	€50K	€150K	€250K
Andalusia	19%	47%	€ 12,450	€ 45,000	€ 82,000
Aragon	19%	49.50%	€ 12,500	€ 47,500	€ 85,000
Asturias	19.50%	50%	€ 12,750	€ 48,000	€ 86,000
Balearic Islands	19%	49.50%	€ 12,500	€ 47,500	€ 85,000
Basque Country	23%	49%	€ 13,500	€ 46,500	€ 84,000
Canary Islands	18.50%	50.50%	€ 12,250	€ 48,500	€ 87,000
Cantabria	19%	50%	€ 12,500	€ 48,000	€ 86,000
Castile and León	19%	46%	€ 12,450	€ 44,500	€ 81,000
Castilla-La Mancha	19%	50%	€ 12,500	€ 48,000	€ 86,000
Catalonia	20%	50%	€ 13,000	€ 48,000	€ 86,000
Extremadura	19%	49.50%	€ 12,500	€ 47,500	€ 85,000
Galicia	18.90%	47%	€ 12,450	€ 45,000	€ 82,000
La Rioja	18.50%	51.50%	€ 12,250	€ 49,000	€ 88,000
Madrid	18%	45%	€ 12,000	€ 43,500	€ 79,000
Murcia	19.10%	47.20%	€ 12,550	€ 45,500	€ 82,500
Navarre	13%	52%	€ 10,500	€ 49,500	€ 89,000
Valencian Community	19.50%	54%	€ 12,750	€ 51,000	€ 92,000

Remember: Programs like the Beckham law can drastically reduce your income tax rates if you manage your move correctly. Also, there are drastic differences in allowed IRFP deductions set at the autonomous community level.

Wealth tax (Impuesto sobre el Patrimonio)

Applies to net global assets over €700,000 (with €300,000 residence exemption). Several regions now offer 100% relief, making wealth tax effectively zero.

Read Also: Wealth Tax and Solidarity Tax in Spain Explained

Region	Min Rate	Max Rate	Primary Residence Exemption	2025 Notes
Andalusia	0.24%	3.03%	€ 300,000	100% wealth tax relief for residents (since 2022)
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
Basque Country	Varies	Varies	€800,000 (approx.)	Separate tax regime; exemptions and brackets differ by province
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% relief as of 2024; applies to all residents
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% relief maintained; zero effective tax
Murcia	0.24%	3.00%	€ 300,000	No special exemptions
Navarre	Varies	Varies	€ 250,000	Own tax regime with lower exemption thresholds
Valencian Community	0.25%	3.12%	€ 300,000	One of the most aggressive regions on wealth taxation

Key Details for Wealth Tax

• National wealth tax rules apply unless otherwise noted. The threshold starts at €700,000 net assets, with an additional €300,000 exemption for your primary residence.
• Madrid, Andalusia, Extremadura, and Cantabria now apply full relief under regional law (with limits in Cantabria).
• 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 a permanent tax, 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 (2025)

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 %	2025 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 2025
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 (2025)

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.

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.

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 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 2024 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 2025 across all 17 ACs:​

Autonomous Community	Standard ITP Rate	Notes
Andalusia	7%	Standard rate applies to most property transactions.
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.
Canary Islands	6.5%	Standard rate for resale properties.
Cantabria	10%	Standard rate applies.
Castile and León	8%–10%	Rates vary depending on specific criteria; standard rate is 8%.
Castilla-La Mancha	9%	Standard rate for property transfers.
Catalonia	10%	Standard rate applies; no recent changes reported.
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%	One of the lowest rates; beneficial for buyers.
Murcia	8%	Standard rate for property transfers.
Navarre	6%	Favorable rate compared to many other regions.
Valencian Community	10%	Standard rate applies; no recent changes reported.

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 reductions for large families, and other communities may reduce 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.

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%

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 does pass parliament, this will not affect anyone who is a resident of Spain, no matter 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), or 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 is 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 your property’s current IBI details.
• 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 website: https://www.sedecatastro.gob.es

Some examples of IBI in 2025. Remember, this is at the municipal level (Ayuntamiento).

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

Autonomo and Social Security Rates

If you are working for yourself in Spain, you’ll probably use an Autonomo. Social security rates for autonomous 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. Just remember that the autonomous communities and regions have directed relief for this payment in many cases. Speak to your Spanish tax expert to understand if you can benefit. Here are some examples:

Aragón: As of January 2025, 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 €8,000–€15,000 grants to attract people who’ll 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 2025. These programs reduce your initial social security burden while you’re getting established.

Does This Spain Regional Tax Comparison Impact Your Planning?

We think that lifestyle and tax are the two biggest factors you need to consider before a move. This guide gives you detailed information on the differences in tax rates between the 17 autonomous communities in Spain. But no article can give you detailed guidance on how this will impact your personal financials. To understand that, you’ll need to speak to experts who explore your needs and give you the personalised advice you need. Our Plan Your Spain Move Packages offer access to everything you need to make the right choice.

🧾 Glossary of Spanish Tax Terms (2025)

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	National tax on net wealth over €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 2025).	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