Published: 29-04-2025
Investment taxation for tax residents in Spain is a key topic for those relocating their residence to the country. Spain has become one of the most attractive destinations for foreigners, whether for work, investment, or quality of life. However, becoming a tax resident brings new tax obligations that must be clearly understood from the start.
Once you become a tax resident in Spain, you are taxed on your worldwide income—that is, income earned both inside and outside the country. In this article, we explain how investments are taxed if you are a Spanish tax resident and what strategies you can apply to optimize your tax burden.
Which taxes apply to investment income for tax residents in Spain?
In Spain, income generated from financial products is taxed under Personal Income Tax (IRPF), specifically in the savings base. This includes:
- Investment income (interest, dividends, etc.)
- Capital gains and losses (stocks, funds, cryptocurrencies, etc.)
Savings tax rates for 2025:
- Up to €6,000: 19%
- €6,000 to €50,000: 21%
- €50,000 to €200,000: 23%
- €200,000 to €300,000: 27%
- Over €300,000: 30%
Taxation by type of financial investment
Under Spain’s investment taxation framework for tax residents, savings income is taxed under IRPF as follows:
- Savings accounts and deposits: taxed as investment income, subject to 19% withholding.
- Treasury bills: same taxation.
- Stocks: taxed upon sale.
- Dividends: included in IRPF; if foreign, double taxation treaties may apply.
- Investment funds: transfers between funds are tax-exempt; taxed only at redemption.
- ETFs: taxed like stocks, no deferral.
- Pension plans and PPA: deductions up to €1,500/year; taxed as employment income upon withdrawal.
- Unit Linked products: allow tax deferral.
- Forex and cryptocurrencies: taxed upon sale.
- Crowdfunding: taxed as interest.
Tax strategies to optimize your investments
- Invest in tax-deferred or tax-deductible products.
- Offset losses and gains in your annual return.
- Plan pension withdrawals carefully to avoid jumping to a higher tax bracket.
- Apply applicable deductions based on income type.
- Declare foreign income under applicable double taxation treaties.
Special tax regimes for foreign residents in Spain
If you’re a foreigner relocating to Spain, there are two tax regimes designed to attract talent and investment:
Special tax regime for inbound workers (Beckham Law)
- Applicable to employees, executives, or investors moving for professional reasons.
- Valid for up to 6 years.
- Only Spanish-sourced income is taxed, under fixed rates.
- More information available on the Spanish Tax Agency website.
Mbappé Regime – Community of Madrid
- A regional tax incentive to attract foreign investment.
- Applies special deductions to certain investment income.
Conclusion: Why understanding investment taxation matters
Understanding investment taxation for tax residents in Spain is essential to properly structure your wealth and reduce your tax burden. Proper tax planning allows you to take advantage of the opportunities the Spanish legal framework provides.
At Gentile Law, our team of international tax and wealth planning experts is ready to help you structure your investments in Spain safely, legally, and efficiently.