Declaring foreign income in Spain: becoming a tax resident, and what it means

It’s the subject that worries everyone, and rightly so: getting it wrong is expensive. Here are the essentials of Spanish taxation once you settle in Valencia, whatever country your income comes from. One thing up front: this is a sensitive area, full of individual cases — this article helps you grasp the logic, but for your specific situation, consult an asesor fiscal (a tax adviser).

Are you a Spanish tax resident?

You become one if you meet either of these tests: you spend more than 183 days a year in Spain, or your centre of economic interests is here. Tax residence isn’t something you choose — it’s something that is established. And the consequence is significant: a Spanish tax resident is taxed in Spain on their worldwide income, not just income earned in Spain.

Double-taxation treaties: not paying twice

Spain has double-taxation treaties with most countries (the UK, the US, Canada, Ireland, France and many more), designed to stop you paying tax twice on the same income. The principle: each type of income is attached to a country, and Spain typically allows a credit for tax already paid abroad. A few common cases:

• Property abroad generally remains taxable in the country where it sits; Spain takes it into account but relieves the double tax.
• Government/public-sector pensions are often taxed in the paying country, while private pensions are usually taxed in Spain. The exact split depends on the specific treaty — another reason to check yours with an adviser.

The Spanish return: the renta

The annual income-tax return is the declaración de la renta. For 2025 income, the campaign runs from April to the end of June 2026. The scale combines a national part and a Valencia-region part: the top marginal rate climbs to around 54% on very high incomes, while savings income is taxed at 19% to 28%. Various allowances (family, employment income, Valencian deductions) bring the bill down.

Do you still file in your home country?

Often yes, if you keep income arising in your home country (rent, certain pensions, investment income): you then file a non-resident return there. And the year you move is a pivotal one (resident for only part of the year) — that’s where people most often trip up. The rules vary by country, so confirm your obligations on both sides.

Don’t forget the Modelo 720. As a Spanish tax resident, you must declare assets and accounts held abroad once any category exceeds €50,000: bank accounts, investments, property. Crypto has its own form (721). Good news: since Spain was condemned by the EU courts in 2022, the once-absurd penalties have been brought back to reasonable levels — but the obligation to declare remains.

And the Beckham Law?

Some new arrivals can opt for this special regime for inbound workers: taxation at 24% on Spanish income, with no worldwide taxation, for six years — provided you have not been a Spanish tax resident in the previous five years. We explain it in detail in our piece on the Beckham Law and digital nomad visa. If you are self-employed (autónomo), your tax situation has its own rules too.

Let’s say it plainly: international taxation is a minefield. This article gives you the broad strokes, not an answer to your situation. A tax adviser — and, where relevant, one on each side of the border — is the best investment you can make in your first year.

Sources

• Agencia Tributaria — Tax residence of individuals
• Agencia Tributaria — Comunitat Valenciana regional tax scale
• French Embassy in Spain — Being a tax resident in Spain
• impots.gouv.fr — Income received from abroad
• Agencia Tributaria — Modelo 720 (assets held abroad)

Information verified in June 2026. Procedures, taxes and prices change fast: before you go anywhere, always check the official source (links below). The Daily Valencia is an AI-assisted publication with human review — spotted a mistake? Drop us a line.