Managing Your Finances in Spain: 

Banking, Taxes & Expat Money Guide (2026)  

Under Spanish domestic tax rules, an individual is generally treated as either tax resident or non-tax resident for the calendar year, rather than becoming a part-year Spanish tax resident simply from the date of arrival.

Depending on your circumstances, it is possible for two countries’ domestic rules to regard you as tax resident at the same time. Where this occurs, an applicable Double Taxation Agreement may need to be considered to determine how your tax residence and particular sources of income are treated.

If you become tax resident in Spain, your wider financial position may need to be considered, including income and gains from property, employment, pensions, savings and investments, as well as assets held outside Spain.

A common starting point for determining Spanish tax residence is the 183-day rule, but this is not the only test. Under Spanish domestic rules, you may also be considered tax resident where the main centre or base of your activities or economic interests is in Spain. There is also a rebuttable presumption relating to the habitual residence in Spain of a non-legally separated spouse and dependent minor children. The Spanish Tax Agency expressly identifies the more-than-183-days test, the centre of activities or economic interests test, and this family presumption.

Important: Immigration or residency status does not by itself determine your Spanish tax residence. Your individual circumstances should be considered, particularly if you retain property, income, investments or other financial interests outside Spain.

A more detailed summary of Personal Taxation in Spain can be found on the PricewaterhouseCoopers (PWC) Website.

If you are planning a move to Spain, it is worth reviewing your wider financial position before becoming Spanish tax resident. This can include property you intend to sell or retain, rental income, pensions, savings, investments and other assets held outside Spain.

The timing of some financial decisions can be important. For example, selling an overseas property before or around the time you move may have different tax implications depending on your Spanish tax-residency position, while retaining property or other assets can create ongoing tax and reporting considerations.

Our dedicated guide looks more closely at property sales and Capital Gains Tax, as well as the wider financial considerations worth thinking about before your move.

Explore Tax & Financial Considerations Before Moving →

• As a Spanish tax resident: You may need to file an annual Spanish income tax return (IRPF, generally filed using Modelo 100) and, depending on your circumstances, report certain assets and rights held outside Spain under the Modelo 720 information regime. Wealth Tax and/or the Temporary Solidarity Tax on Large Fortunes may also need to be considered depending on your circumstances and level of wealth. Filing requirements, thresholds and deadlines should be checked for the relevant tax year.
  
  
• If you are non-resident for Spanish tax purposes: You may still have Spanish tax obligations in relation to income or assets connected with Spain. For example, owning, renting or selling Spanish property can give rise to non-resident tax obligations, generally reported using Modelo 210. The applicable filing deadline depends on the type of income or transaction, so there is not one single annual Modelo 210 deadline that applies to every non-resident taxpayer.

Wise offers a number of services for personal or business customers and provide multiple currencies bank accounts (you can hold up to 50 currencies) and money transfer services (up to 7 times cheaper than traditional banks or Paypal). You get a Debit Card to spend money all over the world (when travelling or online). You can pay bills via Direct Debit however you may still need a local Spanish bank account to pay certain bills or if you are self employed in Spain. However you still get to benefit from this service when travelling and for currency transfers. You can also get a discounted rate and additional support when sending large sums of money abroad. You do get a Euro's account with Wise however the IBAN account number is not based in Spain.

There are many traditional 'bricks and mortar' banks in Spain which have branches on the high street. Examples include: Sabadell, Banco Santander, BVVA, BankInter, CaixaBank and ING.

When researching the bank that meets your needs, Online or Digital Only challenger banks are online and complete with traditional banks. Examples include Wise, Revolute, and N26. With Wise be aware that you will get a Euros account but the IBAN number will be in Belgium which may be problematic for certain bills.

If you plan to be Self Employed in Spain (Autónomo) then you will need a traditional bank to pay for Social Security and pay your tax obligations.

It's important to consider the features you need from the bank such as overdraft, loans, credit cards and mortgages. Compare the monthly bank charges, this is particularlyimportant if you need to open a bank account prior to becoming a resident, as a non-resident the fees may be higher.

Lastly, you may hear aboutBizum, this is a joint project of the Spanish Banking sector that allows individuals to make payments easily directly from your mobile phone.

• Traditional Banks (English Web Page): Sabadell, Santander, BBVA, BankInter, CaixaBank
• Traditional Banks (Spanish Web Page): ING
  
• Online/Challenger Banks: Wise, Revolute, N26
• Useful Links: Which Banks operate with Bizum

You can open a Spanish bank account online if you are resident, you will need your Green (EU) residency card or a Foreigners Identity Card (TIE).

It is possible to open an account as a non-resident however additional charges may apply and you may not be able to do this online. If you open a non-resident bank account and then become resident, don't forget to let the bank know.

• Help At Spain Services: If you plan to register as self employed our tax partner can assist you in the setup and/or ongoing management of your business. We partner with an English speaking tax advisor and offer a 60 minute personal tax consultation, get in touch for further information.
• Useful Links: Autonomo Calculator:https://autonomoinfo.com/en/

The main eligibility requirements include: staying in Spain more than 183 days during the calendar year, have your center of economic interests in Spain. You cannot have been resident in Spain during the past 5 years. If approved it applies during the yearof residence acquisition and the following 5 years.

Eligible individualsare considered non-residents for tax purposes, even if they stay more than 6 months per year in Spain. Taxes are paid only on Spanish income and assets, excluding worldwide income and assets. The taxrate is a flat 24% on salary income instead of the progressive tax scale for residents.

• Help At Spain Services: If you are eligible our tax partner can assist you in registering for the special tax regime. Get in touch for further information.

If you decide to rent a property whilst you are in Spain consider you would have to declare that as income in Spain, and most likely in the country in which it is rented. Additionally be aware that what is considered an eligible cost to offset tax in the current country of residence may be different to Spain. It is recommended to seek professional tax advice on this.

Wealth and Solidarity Tax: In Spain depending on your net worth and the autonomous region you intend to live, you may be subjected to paying tax on everything you own, in addition to paying tax on income, savings/capital gains.

• Wealth Tax: This tax is known as 'Impuesto sobre el patrimonio'.In Spain depending on your net worth and the autonomous region you intend to live, you may be subjected to paying tax on everything you own, in addition to paying tax on income, savings/capital gains.Spain’s wealth tax ranges from 0.2% to 2.5% if your total assets are worth more than€1,000,000. For Spanish residents, the tax applies to worldwide assets. For non-residents, it applies only to assets within Spain.
• Solidarity Tax: This is a tax on large fortunes, it is a temporary tax imposed on the wealthiest residents. It is known as ‘impuesto de solidaridad a las grandes fortunas’ or ‘solidarity tax on large fortunes’. The tax is levied on individuals with net assets exceeding €3 million

It is highly advisable to make a Spanish will if you own assets in Spain, including Spanish property, A Spanish will can simplify the inheritance process and provide clarity for your beneficiaries, reducing the need for lengthy legal procedures and potential disputes.

Without a will, Spanish inheritance laws will apply, which might not align with your preferences.

Inheritance or succession laws and taxation will likely differ from your current country of residence, and if you have financial interests in other countries it's important to consider those as well. If you have citizenship in another country you may be able to indicate a preference to follow alternative inheritance or succession laws other than the Spanish ones.

Proper estate planning can help manage inheritance taxes in both Spain and countries in which you have other interests, potentially reducing the tax burden on your heirs. It's advisable to consult a lawyer (abogado) to help you prepare a will, and don't forget you may need a will in multiple countries.

Lastly, remember if you are not in a registered relationship (Civil Partnership or Marriage) and you are in a long-term partnership with someone