Spain IRPF by Autonomous Community 2026: Regional Tax Rate Comparison

Spain's IRPF (Impuesto sobre la Renta de las Personas Físicas—Personal Income Tax) operates on a unique two-tier system: the Spanish state sets a progressive base rate applied nationwide, while each of Spain's 17 autonomous communities adds its own regional supplement on top. This means your total IRPF burden depends heavily on where you live in Spain—residents of Madrid enjoy some of Europe's lowest personal income tax rates (19-47% combined), while residents of Catalonia or Valencia face rates as high as 54% on the same income. This guide explains how Spain's split IRPF system works, compares regional tax rates across all 17 communities, and helps you understand how location affects your Spanish tax liability in 2026.

Understanding Spain's Two-Tier IRPF System

Spain's IRPF personal income tax is split between the central government (Estado) and regional governments (Comunidades Autónomas). Both levels tax the same income base, but each sets its own progressive rate schedule.

How the Two-Tier System Works

Your total IRPF liability is calculated in three steps:

1. Calculate general taxable income: Add employment income, self-employment income, rental income, and other ordinary income. Apply deductions (personal allowances, mortgage interest, pension contributions, etc.) to get your general taxable base (base imponible general).
2. Calculate savings income: Add investment income (dividends, interest, capital gains from investments). This is your savings taxable base (base imponible del ahorro), taxed separately at flat rates.
3. Apply progressive rates: Your general income is taxed using two overlapping brackets:
   • State (Estado) brackets: Progressive rates set by the Spanish central government (9.5% to 24.5% in 2026)
   • Regional (Autonómico) brackets: Progressive rates set by your autonomous community (varies by region—9% to 27.5% depending on community)

Your total IRPF rate at any income level = State rate + Regional rate at that level.

State (Estado) IRPF Brackets 2026

The Spanish central government applies these rates to general income nationwide:

These rates apply uniformly across all of Spain (except Basque Country and Navarre, which have fully separate systems—see below).

Regional (Autonómico) Brackets

Each of Spain's 15 "common regime" autonomous communities sets its own regional brackets. These rates are added to the state rates above. Regional brackets vary significantly:

• Madrid: 9% to 24.5% (lowest in Spain)
• Andalusia: 9.5% to 27.5%
• Catalonia: 12% to 25.5% (highest in Spain)
• Valencia: 11% to 26%
• Galicia: 9.5% to 24.75%

We'll detail all 17 communities' rates below.

Savings Income (Investment Income) Taxation

Investment income (dividends, interest, capital gains on securities/crypto/investments) is taxed separately from general income at flat rates:

These savings income rates are uniform across all common-regime communities—regional variation only affects general income (employment, self-employment, rental income).

Foral Communities: Basque Country & Navarre

The Basque Country (Euskadi—includes Álava, Bizkaia, Gipuzkoa) and Navarre (Navarra) have fully separate tax systems under Spain's foral tax regime (concierto económico). They set their own complete tax codes, including:

• Fully independent IRPF brackets (not just regional supplements)
• Separate corporate tax rates
• Independent wealth tax and inheritance tax rules
• Own tax collection agencies (not the Agencia Tributaria)

Basque Country and Navarre generally have competitive tax rates (often lower than high-tax communities like Catalonia), but their systems are complex and outside the scope of this guide's state+regional comparison framework.

Regional IRPF Rate Comparison: All 17 Communities

Here's a complete breakdown of 2026 IRPF rates across all Spanish autonomous communities, ranked from lowest to highest total tax burden.

1. Madrid (Comunidad de Madrid)

Regional brackets (added to state rates):

• €0 – €12,450: 9%
• €12,450 – €20,200: 11.5%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• €60,000 – €300,000: 22.5%
• Above €300,000: 24.5%

Total IRPF rate (state + regional): 18.5% to 49%

Why Madrid is lowest: Madrid has the most competitive regional rates in Spain, nearly matching the state rates (meaning Madrid essentially applies ~double the state rate). Madrid eliminated its wealth tax in 2022 and has positioned itself as Spain's lowest-tax region to attract high earners and businesses. Over 60% of Spain's high-net-worth residents live in Madrid partly due to tax advantages.

2. Andalusia (Andalucía)

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• €60,000 – €130,000: 22.5%
• €130,000 – €175,000: 25%
• Above €175,000: 27.5%

Total IRPF rate: 19% to 52%

Analysis: Andalusia (Seville, Málaga, Granada, Córdoba) offers competitive rates on lower and middle incomes but imposes higher rates above €130,000. Still attractive for digital nomads and retirees earning <€60,000, where combined rates stay below 37%.

3. Galicia (Galicia)

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 11.8%
• €20,200 – €35,200: 14.8%
• €35,200 – €60,000: 18.5%
• €60,000 – €150,000: 22.5%
• Above €150,000: 24.75%

Total IRPF rate: 19% to 49.25%

Analysis: Galicia (Santiago de Compostela, A Coruña, Vigo) has moderate regional rates, slightly higher than Madrid but significantly lower than Catalonia or Valencia. Good balance of tax efficiency and cost of living.

4. Murcia (Región de Murcia)

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 11.9%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• Above €60,000: 23.1%

Total IRPF rate: 19% to 47.6%

Analysis: Murcia (Murcia city, Cartagena) has simplified brackets with competitive rates, especially for high earners (€300,000+ pays 47.6% vs. Madrid's 49%).

5. Castilla y León

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• Above €60,000: 22.5%

Total IRPF rate: 19% to 47%

Analysis: Castilla y León (Valladolid, Salamanca, León) has very competitive rates, nearly matching Madrid. Less popular with expats due to harsher winters and lower English penetration, but tax-efficient.

6. La Rioja

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• Above €60,000: 23%

Total IRPF rate: 19% to 47.5%

Analysis: La Rioja (Logroño, wine country) has competitive rates similar to Castilla y León. Small region, less relevant for most expats.

7. Canary Islands (Canarias)

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• €60,000 – €150,000: 23%
• Above €150,000: 25%

Total IRPF rate: 19% to 49.5%

Analysis: Canary Islands (Tenerife, Gran Canaria, Lanzarote) have moderate regional rates. Popular with digital nomads for year-round sunshine, low cost of living, and special economic zone benefits (ZEC—4% corporate tax for qualifying businesses). Regional rates are middle-of-pack but overall tax burden is competitive due to lower cost of living and ZEC opportunities.

8. Extremadura

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 19%
• Above €60,000: 23.5%

Total IRPF rate: 19% to 48%

Analysis: Extremadura (Cáceres, Badajoz) has moderate rates but is one of Spain's poorest and least-developed regions—low expat appeal despite tax competitiveness.

9. Castilla-La Mancha

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 18.5%
• Above €60,000: 23.5%

Total IRPF rate: 19% to 48%

Analysis: Castilla-La Mancha (Toledo, Cuenca, Albacete) has moderate rates. Proximity to Madrid (some towns are within commuting distance) makes it attractive for those seeking lower housing costs with Madrid access.

10. Aragon (Aragón)

Regional brackets:

• €0 – €12,450: 10%
• €12,450 – €20,200: 12%
• €20,200 – €35,200: 15%
• €35,200 – €60,000: 19%
• Above €60,000: 23.5%

Total IRPF rate: 19.5% to 48%

Analysis: Aragon (Zaragoza) has moderate rates, slightly higher than Madrid but competitive overall. Zaragoza is Spain's 5th largest city with good quality of life and lower costs than Barcelona or Madrid.

11. Balearic Islands (Illes Balears)

Regional brackets:

• €0 – €12,450: 10%
• €12,450 – €20,200: 13%
• €20,200 – €35,200: 16%
• €35,200 – €60,000: 19.5%
• €60,000 – €140,000: 23.5%
• Above €140,000: 25.5%

Total IRPF rate: 19.5% to 50%

Analysis: Balearic Islands (Mallorca, Ibiza, Menorca) have higher regional rates than mainland Spain averages. High cost of living (especially property) + higher taxes make Balearics less attractive than Canaries for tax-conscious expats, but lifestyle appeal remains strong.

12. Asturias

Regional brackets:

• €0 – €12,450: 10%
• €12,450 – €20,200: 12.5%
• €20,200 – €35,200: 16%
• €35,200 – €60,000: 20%
• Above €60,000: 24.5%

Total IRPF rate: 19.5% to 49%

Analysis: Asturias (Oviedo, Gijón) has moderate-to-high regional rates. Beautiful region (Green Spain) but rainy climate and limited expat infrastructure make it less popular despite reasonable tax rates.

13. Cantabria

Regional brackets:

• €0 – €12,450: 9.5%
• €12,450 – €20,200: 12.5%
• €20,200 – €35,200: 15.5%
• €35,200 – €60,000: 19.5%
• Above €60,000: 24.5%

Total IRPF rate: 19% to 49%

Analysis: Cantabria (Santander) has moderate rates, slightly higher than Galicia but lower than Catalonia. Coastal region with good quality of life but limited expat presence.

14. Andalusia Alternative (some municipalities)

Note: Rates shown above for Andalusia are standard. Some specific brackets have local variations—always verify with your municipality.

15. Catalonia (Catalunya)

Regional brackets:

• €0 – €12,450: 12%
• €12,450 – €20,200: 14%
• €20,200 – €35,200: 17.5%
• €35,200 – €60,000: 21.5%
• €60,000 – €90,000: 23.5%
• €90,000 – €120,000: 24.5%
• €120,000 – €175,000: 25%
• Above €175,000: 25.5%

Total IRPF rate: 21.5% to 50% (up to 54% with solidarity surcharge on income >€175,000)

Analysis: Catalonia (Barcelona, Girona, Tarragona) has the highest regional IRPF rates in Spain. Barcelona's lifestyle appeal (beaches, culture, internationalism) attracts expats despite high taxes. High earners pay 50-54%, significantly more than Madrid's 47-49%. Many Barcelona-based remote workers with foreign income use Spain's Beckham Law (24% flat rate for 6 years) to mitigate Catalonia's high rates.

16. Valencia (Comunitat Valenciana)

Regional brackets:

• €0 – €12,450: 11%
• €12,450 – €20,200: 13%
• €20,200 – €35,200: 16%
• €35,200 – €60,000: 20%
• €60,000 – €120,000: 24%
• Above €120,000: 26%

Total IRPF rate: 20.5% to 51%

Analysis: Valencia (Valencia city, Alicante, Castellón) has the second-highest regional rates after Catalonia. Valencia city is increasingly popular with digital nomads (lower cost than Barcelona, beaches, Mediterranean climate), but high IRPF rates eat into savings. Consider Beckham Law if relocating to Valencia with foreign employment.

Basque Country (País Vasco) & Navarre (Navarra)

As noted, these foral communities have entirely separate tax systems. Basque Country provinces (Álava, Bizkaia, Gipuzkoa) each set their own rates, generally competitive with Madrid. Navarre also has competitive rates. If considering these regions, consult local tax advisors for foral system details.

Summary: Ranking by Total Tax Burden (€100,000 income)

At €100,000 income, living in Madrid vs. Valencia saves ~€5,000 annually (5%) in IRPF.

Spain's Beckham Law: Flat 24% Rate for New Residents

Spain's Beckham Law (Régimen Especial Impatriados, or Special Tax Regime for Expatriates) allows qualifying new residents to pay a flat 24% rate on Spanish employment income instead of progressive IRPF rates, bypassing regional variations entirely.

Beckham Law Eligibility 2026

To qualify for Beckham Law, you must meet ALL of these criteria:

• Not a Spanish tax resident in prior 10 years: You cannot have been a Spanish tax resident in the 10 calendar years before moving to Spain
• Become Spanish tax resident due to employment: You must move to Spain for a work contract with a Spanish employer OR remote work for a foreign employer (as of 2023 digital nomad amendments)
• Spanish employment income: You must have qualifying employment or director income from Spanish sources
• Apply within 6 months: You must elect Beckham Law status within 6 months of becoming a Spanish tax resident (strict deadline)

Beckham Law Tax Benefits

Under Beckham Law, your tax treatment for 6 consecutive years:

• Spanish employment income: Flat 24% rate on income up to €600,000 per year (progressive IRPF above €600,000). This 24% rate is uniform regardless of which autonomous community you live in—Madrid, Catalonia, Valencia all pay the same 24%.
• Worldwide investment income: Dividends, interest, rental income, and capital gains from worldwide sources are taxed at standard savings rates (19-26%), capped at income earned outside Spain up to €600,000 annually
• Foreign employment income: Income from work performed outside Spain is exempt from Spanish tax (massive benefit for remote workers with foreign clients)
• Wealth tax exemption: Beckham Law holders are exempt from Spain's wealth tax on assets outside Spain (only Spanish-situs assets are subject to wealth tax)
• No worldwide taxation: Unlike standard Spanish tax residents, Beckham Law holders are taxed as non-residents for some purposes—foreign-source income (except investment income) is generally exempt

Who Benefits Most from Beckham Law?

Huge benefit for:

• Remote workers with foreign employment earning €60,000-300,000 (would pay 37-48% under standard IRPF, pay 24% under Beckham Law)
• Tech workers relocating to Barcelona or Valencia (avoid Catalonia's 50-54% top rate)
• Executives or managers with high Spanish salaries (€150,000+) moving from abroad
• Entrepreneurs with foreign clients or international income streams

Limited benefit for:

• Lower earners (<€40,000)—24% flat rate is higher than progressive IRPF rates at low incomes (19-30%)
• Retirees with pension income (pensions don't qualify as "employment income"—Beckham Law doesn't help)
• Passive investors (dividend/interest income taxed at standard rates under Beckham Law, no special benefits)

Beckham Law vs. Regional IRPF: Tax Savings Examples

Example 1: €80,000 Spanish employment income in Barcelona (Catalonia)

• Standard Catalonia IRPF: ~€28,000 tax (35% effective rate)
• Beckham Law: €19,200 tax (24% flat rate)
• Annual savings: €8,800 (31% reduction)

Example 2: €150,000 Spanish employment income in Madrid

• Standard Madrid IRPF: ~€56,000 tax (37% effective rate)
• Beckham Law: €36,000 tax (24% flat rate)
• Annual savings: €20,000 (36% reduction)

Example 3: €120,000 remote work income (foreign employer) in Valencia

• Standard Valencia IRPF: ~€45,000 tax (38% effective rate on Spanish-source treatment)
• Beckham Law: €0 tax (foreign employment income exempt)
• Annual savings: €45,000 (100% reduction)

The Beckham Law provides the most dramatic savings in high-tax regions (Catalonia, Valencia) and for remote workers with foreign employers (income exempt entirely).

Beckham Law Limitations and Drawbacks

• 6-month application deadline is strict: Miss the deadline and you cannot apply—you're stuck with standard IRPF for life in Spain (until you leave for 10 years and return)
• 6-year duration only: After 6 years, you revert to standard IRPF (including regional variations)—no renewals or extensions
• Investment income not fully exempt: Foreign dividends, interest, and capital gains are taxed at 19-26% (not exempt like foreign employment income)
• Wealth tax on Spanish assets: Only foreign assets are exempt—Spanish property, bank accounts, and businesses are subject to wealth tax (0.2-3.5% depending on region)
• Still file Spanish tax returns: Beckham Law doesn't eliminate filing requirements—you must file annual IRPF returns indicating your special regime status

Combining Beckham Law with Location Optimization

Since Beckham Law provides a flat 24% rate regardless of region, you can live in high-cost, high-tax areas (Barcelona, Valencia) without the IRPF penalty. However, other taxes still vary by region:

• Wealth tax: Madrid has eliminated wealth tax; Catalonia charges up to 3.5% on assets >€10.7M
• Inheritance/gift tax: Varies widely—Madrid has generous exemptions, Catalonia/Valencia have higher rates
• Municipal taxes (IBI): Property taxes vary by municipality

Optimal strategy: Use Beckham Law in Barcelona or Valencia (high lifestyle appeal without IRPF penalty), while keeping significant assets in low-tax jurisdictions to minimize wealth tax.

Deductions, Allowances, and Filing Requirements

Spain's IRPF system includes numerous deductions and allowances that reduce taxable income. Some are set nationally, while others vary by autonomous community.

Standard Personal Allowances (National)

All Spanish taxpayers can reduce taxable income with these allowances:

• Taxpayer minimum (mínimo del contribuyente): €5,550 personal allowance (increases with age: +€1,150 if age 65+, +€1,400 if age 75+)
• Dependent children: €2,400 for first child, €2,700 for second, €4,000 for third, €4,500 for fourth+ (increases if child is disabled)
• Dependent ascendants (parents/grandparents): €1,150 per dependent (increases with age and disability)
• Disability allowances: €3,000 for taxpayers with 33-65% disability, €9,000 for 65%+ disability

Common Deductions

• Social security contributions: Fully deductible from employment income (employees pay ~6.35% of salary to Social Security, self-employed pay ~30%—all deductible)
• Pension contributions: Contributions to Spanish pension plans (planes de pensiones) are deductible up to €1,500/year (or 30% of employment income, whichever is lower)
• Mortgage interest: Mortgage interest on primary residence purchased before 2013 is deductible up to 15% of interest paid (capped at €9,040/year). Mortgages from 2013+ receive no deduction (phased out).
• Professional expenses (self-employed): Self-employed (autónomos) can deduct business expenses—office rent, supplies, travel, professional services, etc.—against self-employment income
• Childcare expenses: Some regions offer deductions for childcare, preschool, or education expenses (varies by community)

Regional Deductions (Vary by Community)

Autonomous communities can offer additional regional deductions. Common examples:

• Madrid: Deductions for birth/adoption (up to €600 per child), rental housing for under-35s (20% of rent paid, max €1,000/year)
• Catalonia: Deductions for renovation of primary residence (5% of expenses), rental income from social housing (20% of rent received)
• Andalusia: Deductions for birth of children (€50-100 per child depending on number), adoption expenses (up to €600)
• Valencia: Deductions for large families (€300-600 depending on family size), educational expenses (up to €110 per child)

Check your specific autonomous community's tax agency (Hacienda regional) for full list of regional deductions.

IRPF Filing Requirements and Deadlines

Spanish residents must file annual IRPF returns (Declaración de la Renta) if:

• Total income exceeds €22,000 from one employer (or €15,000 from multiple employers)
• You received self-employment income, rental income, or investment income above thresholds
• You're claiming deductions or refunds

Key deadlines:

• April 3 – June 30: Annual IRPF filing period (for prior calendar year income—file by June 30, 2026 for 2025 income)
• June 27: Deadline if you're paying tax owed via direct debit
• Late filing penalty: 5-20% of tax owed plus interest, depending on delay

Filing Process

Spain's IRPF filing is done through the Agencia Tributaria (Spanish Tax Agency) online portal:

1. Obtain Número de Identificación de Extranjero (NIE): Foreign residents need an NIE (Spanish tax/ID number)
2. Access Renta Web: Log in to Agencia Tributaria's Renta Web platform using digital certificate, Cl@ve PIN, or reference number
3. Review pre-filled data: The Agencia Tributaria pre-fills your return with employment income, bank interest, and other reported data—verify accuracy and add missing items (foreign income, deductions, etc.)
4. Indicate regional residence: Your return will automatically apply the correct state + regional brackets based on your registered autonomous community residence as of December 31
5. Submit and pay: Submit electronically and pay any tax owed (or receive refund within 3-6 months if you overpaid via withholding)

Withholding Tax (Retención)

Spanish employers withhold IRPF tax from each paycheck based on estimated annual tax liability. Withholding rates vary by income level, family situation, and autonomous community. Common withholding rates:

• €20,000 salary: ~10-12% withheld
• €50,000 salary: ~22-25% withheld
• €100,000 salary: ~35-38% withheld

When you file your annual IRPF return, you calculate actual tax owed and either pay the difference (if withholding was insufficient) or receive a refund (if withholding was excessive).

Tax Planning Strategies: Optimizing Your Spanish Tax Burden

Here are practical strategies to minimize IRPF in Spain while staying compliant:

1. Choose Your Autonomous Community Strategically

If you have location flexibility (remote worker, retiree, entrepreneur), consider low-tax communities:

• Madrid: Lowest IRPF rates, no wealth tax, strong expat infrastructure, excellent quality of life. Trade-off: Higher cost of living than southern Spain.
• Andalusia: Competitive IRPF rates (especially <€60,000 income), significantly lower cost of living than Madrid/Barcelona, good climate, English-friendly coastal areas (Málaga, Marbella, Granada). Trade-off: Less international business infrastructure than Madrid.
• Canary Islands: Moderate IRPF rates, lowest cost of living in Spain, year-round sunshine, special economic zone (ZEC) for businesses. Trade-off: Island location (flights required for mainland travel).

Avoid high-tax regions (Catalonia, Valencia) unless lifestyle benefits outweigh ~5-7% higher taxes compared to Madrid.

2. Use Beckham Law If Eligible

If you're moving to Spain from abroad with employment income, apply for Beckham Law within 6 months of establishing Spanish tax residence. This is especially valuable if:

• You earn €60,000-300,000 in Spanish employment income (24% flat rate vs. 35-48% progressive IRPF)
• You're moving to high-tax regions (Catalonia, Valencia)—Beckham Law eliminates regional tax penalty
• You have remote work income from foreign employers (exempt entirely under Beckham Law)

3. Maximize Deductions and Allowances

• Contribute to Spanish pension plans: Up to €1,500/year is tax-deductible, reducing taxable income by that amount (saves €300-700 in tax depending on bracket)
• Claim all family allowances: If you have children, dependent parents, or disabilities in your household, ensure you claim all applicable allowances
• Check regional deductions: Many communities offer birth deductions, rental deductions, education deductions—these can save €200-1,000/year
• Self-employed: Track all business expenses: Autónomos can deduct office expenses, travel, professional services, equipment, even a portion of home utilities if working from home

4. Timing Income Realization

If you control when you receive income (bonuses, dividends, business income), time it strategically:

• Split across years: If you expect a large bonus or dividend, consider splitting it across two calendar years to stay in lower progressive brackets each year
• Defer income to low-income years: If you plan to take a sabbatical or have a low-income year, defer bonuses or business income to that year
• Realize capital gains in low-income years: Capital gains on investments are taxed at 19-26% depending on amount—realize large gains in years with little other income to stay in the 19% bracket

5. Corporate Structures for Entrepreneurs

Self-employed individuals (autónomos) pay progressive IRPF up to 54% on business income. Consider incorporating:

• Sociedad Limitada (SL): Spanish limited company pays 25% corporate tax (15% for first 2 years as a startup). You pay yourself a modest salary (taxed at IRPF) and retain profits in the company, distributing dividends (taxed at 19-26%) when convenient.
• Break-even point: Incorporation makes sense around €50,000-70,000 annual profit (above this, corporate + dividend tax is lower than autónomo IRPF)
• Canary Islands ZEC: Companies established in the Canary Islands' Special Economic Zone (ZEC) pay 4% corporate tax instead of 25%, massive savings for qualifying businesses

6. Foreign Income Structuring

If you have foreign-source income, optimize tax treatment:

• Treaty relief: Spain has tax treaties with 90+ countries—foreign income may be exempt or qualify for tax credits. Always check treaty provisions and claim relief on Modelo 100 (IRPF return).
• Foreign dividends: Taxed at 19-26% in Spain, but if foreign withholding tax was applied, you get a credit (reducing Spanish tax owed)
• Foreign pensions: Government pensions are often exempt in Spain under treaties (e.g., U.S. Social Security is taxable only in the U.S.). Private pensions are taxed in Spain but may qualify for reduced rates.

7. Wealth Tax Planning (Madrid vs. Other Regions)

Spain's wealth tax (Impuesto sobre el Patrimonio) varies by region:

• Madrid: 100% wealth tax exemption (effectively eliminated)
• Catalonia: 0.21-3.5% on net assets >€500,000 (after exemptions)
• Valencia: 0.25-3.5% on net assets >€600,000

If you have significant assets (€1M+), establishing residence in Madrid eliminates wealth tax entirely—saving tens of thousands annually compared to Catalonia or Valencia.

8. Plan for Post-Beckham Law Years

If you're using Beckham Law, start planning for year 7 (when you revert to standard IRPF):

• Consider relocating to Madrid or another low-tax region before Beckham Law expires (if currently in Catalonia/Valencia)
• Structure income to be capital gains-heavy (19-26%) rather than employment income (up to 54%)
• Explore incorporating to shift income to corporate rates (25%)
• Time large income events (stock options, business exits) during final Beckham Law years to benefit from 24% rate