Spain continues to develop its ecosystem for tech entrepreneurs and startups. With the enactment of the Startup Law (Ley 28/2022) and new measures for 2025–2026, the tax environment for foreign founders has become one of the most advantageous in Europe.
What Is Taxable in Spain
In Spain, the following are subject to taxation:
- Income from employment, entrepreneurial, and professional activities;
- Capital income, dividends, interest;
- Real estate and movable property;
- Transactions involving the purchase and sale of assets (including cryptocurrency, securities, company shares).
The type of tax declaration depends on your status:
| Type of Taxpayer | Declaration | Tax |
|---|---|---|
| Individual | IRPF (Impuesto sobre la Renta de las Personas Físicas) | Resident income tax |
| Non-resident | IRNR (Impuesto sobre la Renta de no Residentes) | Non-resident income tax |
| Legal entity | IS (Impuesto sobre Sociedades) | Corporate income tax |
Main Taxes in Spain in 2026
For Individuals
- IRPF – tax on income for residents in Spain. Progressive rates range from 19% to 47%, depending on the region and income level. Deductions are available for children, mortgage payments, investments in innovation, and pension plans.
- IRNR – tax for non-residents (e.g., those living less than 183 days per year in Spain). The rate is 24% on income from Spanish sources (or 19% for EU/EEA residents).
For Legal Entities
- IS (Impuesto sobre Sociedades) – corporate income tax. The standard rate is 25%, but certified startups benefit from a reduced rate of 15% for the first four years after becoming profitable. This is a key advantage of the Startup Law.
- IVA (Value Added Tax):
- Standard rate – 21%;
- Reduced rates – 10% (restaurants, tourism, transport) and 4% (basic goods, books, medicines).
- IAE (Impuesto sobre Actividades Económicas) – tax on economic activities. Startups are exempt from this tax for the first two years of operation.
- OS (Impuesto sobre Operaciones Societarias) – tax on share capital operations. Startups are exempt upon formation, included in the benefits package of Ley 28/2022.
- IIVTNU (Tax on Urban Land Value Increase) – applicable when selling real estate; relevant for startups only if they own office property.
Declarations and Tax Reporting
Tax reporting in Spain is transparent but strictly regulated.
| Form | Who Files | Deadlines |
|---|---|---|
| IRPF | Resident individuals | Annually, from April to June |
| IRNR | Non-residents | Annually, by December 31 |
| IS | Companies (SL, SA, etc.) | Within 25 days after 6 months from the end of the fiscal year |
| IVA (Model 303) | Companies and self-employed | Quarterly |
| Retenciones (Models 111, 190) | Employers / payers | Quarterly / annually |
All declarations in Spain must be submitted online using an electronic certificate (Certificado digital).
Startups benefit from a simplified reporting system and expedited procedures when interacting with the tax authority AEAT.
Tax Incentives and Benefits for Startups (Ley 28/2022)
- Reduced IS rate – 15% instead of 25%. For companies officially recognized as startups, the corporate tax rate is lowered to 15% for the first four tax periods after the company becomes profitable. This provides an important financial cushion during the early growth phase.
- Tax payment deferral. Startups can defer IS payments without penalties: 12 months for the first year and 6 months for the second year.
This eases cash flow management during the launch stage.
- Tax deductions for investors. Individuals investing in certified startups receive a 50% deduction on the investment amount (up to €100,000 per year). Investments must be held for at least three years.
- Simplifications for foreign founders. Foreign founders and their families can benefit from fast issuance of N.I.E. and NIF numbers, expedited processing under the Startup Law (within 20 working days), and the ability to manage the company remotely without being physically present in Spain.
“Beckham Law” – Tax Benefits for New Residents
This incentive remains in effect in 2026 and continues to be a key attraction for entrepreneurs and specialists relocating under the startup visa.
- A flat 24% tax rate on income up to €600,000 per year.
- Duration – 6 years (the year of relocation plus 5 years).
- Applies to:
- Startup founders and executives;
- Remote workers (digital nomads);
- Professors, researchers, and highly qualified professionals.
The main advantage: income earned outside Spain is not subject to Spanish tax unless it is connected to Spanish territory.
Additional Tax Incentives
- Exemption from capital gains tax on the sale of startup shares if reinvested in another startup;
- Deductions for R&D and innovation expenses;
- Reduced social security contributions for new self-employed individuals;
- Access to grants and programs such as ENISA, CDTI, EIC Accelerator, and regional funds.
Practical Recommendations
- Verify your status as an “empresa emergente” (emerging company) – tax benefits apply only with official startup recognition.
- Plan your tax strategy early – Beckham Law benefits must be applied for within 6 months of obtaining your residence permit.
- Maintain accurate records from day one – Spain has a formal tax culture, and even minor delays can result in fines.
- Work with asesores fiscales (tax advisors) – they handle declarations, apply deductions, and monitor changes in regional tax rates.
In 2026, Spain offers one of the most flexible and startup-friendly tax systems in the EU for startups and their founders.
Thanks to the reduced IS rate (15%), Beckham Law (24%), deferrals, and investor deductions, relocating under the startup visa is not just an immigration step but a financially advantageous decision.