Do I really need a gestor?

For your first 2–3 years, yes — €150–€350/year buys correct Modelo 100 and 720 filings. Once your situation is stable, many retirees self-file using Renta WEB (free Hacienda portal in English-assisted mode).

Are UK ISAs tax-free in Spain?

No. Spain does not recognise foreign tax wrappers. Dividends, interest and gains inside an ISA are fully taxable on the Spanish savings scale. Some retirees liquidate ISAs before moving to reset the cost basis.

What about the Beckham Law?

Designed for incoming employees, not retirees. You need a Spanish employment contract or to be a company director. Retirees with pensions cannot use it.

Is there a tax exemption for the over-65s?

Yes — capital gain on the sale of your habitual residence is fully exempt if you are 65+ and have lived there 3+ years. There's also a partial exemption if you reinvest in an annuity before age 70.

Do I pay tax on inheritance from abroad?

Inheritance and Gift Tax is regional. In Valencia, spouses and children get a 99% reduction — most family inheritances pay almost nothing. Non-relatives pay full rates (7.65%–34%).

Taxes

Retiree Taxes in Spain — The Complete Hub

Spain taxes its residents on worldwide income, but a retiree's actual bill is shaped by three things: which pensions you draw, how your investments are wrapped, and which double-taxation treaty covers you. This hub walks through the system end-to-end and links to deep-dives on each piece.

Last updated 1 June 2026

Who pays Spanish tax

You become tax resident the moment you spend more than 183 days in a calendar year in Spain, or your main economic interests sit here. Residency is all-or-nothing: there is no part-year split, and the Hacienda counts every day of physical presence including arrival and departure.

Residents file an annual IRPF return (Modelo 100) between April and June covering the previous calendar year, plus — if assets abroad exceed €50,000 in any of three categories — the informational Modelo 720.

Non-resident retirees

Spending under 183 days? You only pay Spanish tax on Spanish-source income (rental, Spanish dividends) via Modelo 210, at 19% (EU) or 24% (non-EU). Your home country still taxes your pension.

How retirement income is taxed

Income type	Treatment	Effective rate band
State pension (UK, DE, NL, etc.)	Taxed in Spain as employment income	19–37%
Government / civil-service pension	Usually taxed only in home country (treaty)	0% in Spain (still declared)
Private / occupational pension	Taxed in Spain as employment income	19–37%
US Social Security	Taxed only in the US under treaty	0% in Spain
Dividends & interest	Savings income scale	19–28%
Capital gains on shares/property	Savings income scale	19–28%
ISA / 401(k) / Roth withdrawals	No Spanish wrapper recognition — fully taxable	19–37%

The 2026 IRPF scales

Spain has two parallel scales. General income (pensions, salary, rent) uses the progressive scale; savings income (dividends, interest, gains) uses the savings scale. The Valencian Community adds its own regional brackets on top of the state portion — the combined rates below already include both.

Band	General income	Savings income
Up to €12,450	19%	19% (to €6,000)
€12,450 – €20,200	24%	21% (€6k–€50k)
€20,200 – €35,200	30%	23% (€50k–€200k)
€35,200 – €60,000	37%	27% (€200k–€300k)
€60,000 – €300,000	45%	28% (over €300k)
Over €300,000	47%	28%

Allowances every retiree should claim

✦Personal allowance: €5,550 (under 65), €6,700 (65+), €8,100 (75+).
✦Joint filing: €3,400 extra allowance if your spouse has under €1,500 of own income — usually beneficial when one partner has all the pension income.
✦Pension income reduction: €2,000 fixed deduction on the first slice of pension income.
✦Disability allowance: €3,000–€9,000 depending on certified degree.
✦Valencia regional deductions: rent paid, charitable donations, energy-efficient renovations.

Wealth tax and the Solidarity surcharge

Valencia charges Wealth Tax (Impuesto sobre el Patrimonio) on worldwide net assets above €500,000 per person, with a further €300,000 exempt on your main home. Rates run 0.25% → 3.5%. The state Solidarity Tax kicks in only above €3 million, and any wealth tax already paid is fully credited against it.

Practical impact: a couple owning a €600k home plus €400k in investments has a combined €1.6m exempt slice and typically owes little to no wealth tax. Above ~€2m of liquid assets the bill becomes material.

Modelo 720 — the form everyone forgets

✦Annual informational return on foreign assets in three buckets: bank accounts, securities/funds/insurance, real estate.
✦Threshold: €50,000 per bucket on 31 December — declare the bucket if it exceeds, then re-declare only if value rises by €20,000+ or you close an account.
✦Filed by 31 March. No tax owed — it is purely informational.
✦Penalties were softened in 2022 after the EU Court ruling — late filings now incur ordinary, proportionate fines (not the old confiscatory regime).

First-year tip

Your first Modelo 720 captures everything you held at 31 December of your first tax-resident year. Build the list before you move — bank statements, pension valuations, property deeds with EUR conversion at year-end rate.

Compliance calendar

Deadline	Form	What
31 March	Modelo 720	Foreign assets declaration
Apr – 30 Jun	Modelo 100	Annual IRPF income tax
Jun – Jul	Modelo 714	Wealth tax (filed with IRPF)
Quarterly	Modelo 210	Non-residents with Spanish rental
31 Dec	—	Plan year-end gain/loss harvesting