Moving to Spain while keeping income from the UK raises two questions at once: where you are tax resident, and how each type of UK income is treated by both countries. This article explains Spain’s residence rules, how the UK-Spain tax treaty deals with the most common types of income, how and when to declare in Spain, and what applies to UK businesses operating here. It is a map of the questions to resolve, not a substitute for a review of your own case.
What are the Spanish tax residence rules for UK expats?
Tax residence decides how Spain taxes you. Residents are taxed on their worldwide income; non-residents only on income from Spain.
How is Spanish tax residence determined?
Under Article 9 of the Personal Income Tax Law, you are tax resident in Spain for a calendar year if either of these applies:
- You spend more than 183 days in Spain in the year. Sporadic absences count as days in Spain unless you prove tax residence in another country.
- The main centre or base of your activities or economic interests is in Spain, directly or indirectly.
Spain also presumes you are resident, unless you prove otherwise, if your spouse (not legally separated) and dependent minor children live habitually in Spain. The Tax Agency’s income tax manual adds that what counts is what can be proven, not your intention, so keep dated evidence of where you were.
If both Spain and the UK consider you resident, Article 4 of the UK-Spain treaty decides, applying in order: permanent home, centre of vital interests, habitual abode, nationality and, failing those, agreement between the two tax authorities.
What are the tax implications of Spanish residence?
- Residents pay personal income tax (IRPF) on worldwide income. For a resident of Andalusia, general income (such as salaries, pensions, business profit and rent) is taxed on a combined state and regional scale running from 19% to 47% (Article 63 of the Personal Income Tax Law and Article 23 of Andalusian Law 5/2021). Savings income, such as interest, dividends and most capital gains, has its own scale (Article 66 and the regional equivalent).
- Non-residents pay non-resident income tax on Spanish income only, generally at 24%, or 19% if resident in another EU or EEA state with effective exchange of tax information (Article 25 of the Non-Resident Income Tax Law). Since Brexit, UK residents are taxed at 24% on, for example, rent from Spanish property. Some income has its own rates.
How does the UK-Spain double taxation treaty affect expat income?
The current UK-Spain treaty was signed in London on 14 March 2013 and has been modified by the Multilateral Instrument (MLI). It decides which country may tax each type of income and how double taxation is relieved.
Which income types does the treaty cover?
Some examples, for a person who is resident in Spain under the treaty:
| Type of income | Rule in the treaty |
|---|---|
| Private and occupational pensions | Taxable only in the country of residence, here Spain (Article 17), subject to Article 18 |
| Government service pensions (for example, from UK public employment) | Generally taxable only in the UK; taxable only in Spain if the person is resident and a national of Spain (Article 18.2) |
| Salaries from employment | Generally taxable where the work is done (Article 14), with exceptions |
| Rent from UK property | May be taxed in the UK, where the property is (Article 6); Spain also taxes it as a resident’s worldwide income and gives relief |
| Dividends | May be taxed in the country of residence, with limits on tax in the source country (Article 10) |
Read each article for its conditions. The treaty is the starting point, not the full answer: each country’s own rules decide how the income is declared.
How can expats claim double taxation relief?
Where both countries may tax the same income, a Spanish resident claims the deduction for international double taxation in the Spanish return (Article 80 of the Personal Income Tax Law), generally limited to the lower of the foreign tax paid and the Spanish tax on that income. On the UK side, GOV.UK explains that if you live in a country with a double-taxation agreement, you can claim relief in the UK to avoid being taxed twice. Keep the UK tax documents (for example, P60s, pension statements and the SA302 or tax calculation) and, where needed, a certificate of Spanish tax residence.
How do you declare UK income in Spain?
When and how must UK income be declared to the Spanish authorities?
Spanish residents declare worldwide income, including UK income, in the annual income tax return (Renta) for the calendar year. For the 2025 tax year, the Tax Agency’s campaign ran from 8 April to 30 June 2026 online. The return for 2026 will be filed in the 2027 campaign; check the dates when they are published. Returns are filed online through the Tax Agency’s services, or with the Agency’s help by phone or in person by appointment.
On the UK side, GOV.UK says you must tell HMRC if you leave the UK to live abroad permanently, using form P85 or the residence pages (SA109) of a Self Assessment return. You usually still need to file a Self Assessment return in the UK if, for example, you rent out UK property or have other untaxed UK income.
What are the penalties for failing to declare UK income?
Undeclared income leads to the tax being assessed with late-payment interest and, in many cases, a penalty. Under Article 191 of the General Tax Law, failing to pay tax that a correct return would have shown is an offence; penalties range from 50% for minor offences to 100% to 150% for very serious ones, depending on the circumstances. Filing late without a request from the Tax Agency instead triggers surcharges.
What are the tax responsibilities for UK businesses operating in Spain?
How is Spanish business tax calculated for foreign entities?
A UK company that operates in Spain through a branch or other permanent establishment pays non-resident income tax on the profits of that establishment, broadly under corporate tax rules. A Spanish subsidiary pays corporate income tax: the general rate is 25%, with reduced rates in 2026 for companies with turnover below 1 million euros (19% on the first 50,000 euros and 21% on the rest), 23% for other small companies, and 15% for newly created companies in their first two profitable periods, subject to conditions (Article 29 and 44th transitional provision of the Corporate Income Tax Law). See our guide to choosing a business structure in Spain.
Which registration and reporting obligations must UK businesses meet?
A business that will operate in Spain needs a Spanish tax number (NIF) and must file the census declaration (Modelo 036) before starting activities. It must then handle VAT where applicable, keep accounts and file its returns. See our VAT guide and first-year accounting checklist.
At a glance
| Taxation aspect | Resident in Spain | Non-resident |
|---|---|---|
| Income taxed in Spain | Worldwide income | Spanish-source income only |
| Rates | General income: 19% to 47% combined scale for Andalusian residents; savings income on its own scale | Generally 24%, or 19% for EU/EEA residents; some income has its own rates |
| Spanish return | Annual Renta return (2025 campaign: 8 April to 30 June 2026) | Non-resident returns, for example Modelo 210 for property |
Frequently asked questions
How does Spain know if I’m a tax resident?
Residence is a question of facts and proof. The Tax Agency looks at the days you spend in Spain, where the main base of your activities or economic interests is, and where your spouse and dependent children live, as set out in Article 9 of the Personal Income Tax Law. Its manual stresses that days of presence are counted from evidence, so registrations, contracts, travel records and bank activity can all be relevant. If you are also resident in the UK, the treaty tie-breaker applies.
How we can help
MMR Consultant is based in Málaga with offices in Marbella and works in English and Spanish. Our tax services team reviews residence, treaty position and Spanish returns for people with UK income, and our preparation for arrival service helps plan before the move. Contact us to review your case.
Sources
Checked on 14 October 2026.
- Boletín Oficial del Estado, Personal Income Tax Law (Law 35/2006), Articles 9, 63, 66 and 80.
- Agencia Tributaria, 2025 income tax manual: habitual residence in Spain, page updated 17 March 2026.
- Boletín Oficial del Estado, Andalusian Law 5/2021 on ceded taxes, Article 23.
- Boletín Oficial del Estado, Non-Resident Income Tax Law, Article 25.
- Boletín Oficial del Estado, UK-Spain double taxation convention of 14 March 2013, Articles 4, 6, 10, 14, 17 and 18.
- GOV.UK, Spain: tax treaties (2013 convention and MLI synthesised text in force).
- GOV.UK, Tax on your UK income if you live abroad and Tax if you leave the UK to live abroad.
- Agencia Tributaria, Renta and wealth tax campaign dates 2025.
- Boletín Oficial del Estado, General Tax Law, Articles 27 and 191.
- Boletín Oficial del Estado, Corporate Income Tax Law, Article 29 and 44th transitional provision.
- Agencia Tributaria, Modelo 036 frequently asked questions.
This article is general information, not tax advice for your case.
