Last Updated on March 18, 2026 by Bruno Bianchi
Question
How does Spain tax those relying on savings alone? Would I still be liable to make payments/is it even possible solely with savings?
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These are the answers of some Facebook group members:
”I’m not a tax expert, but I’ve been on these pages for several years… Savings principal would not be taxed, but interest earned would be. Yes, it’s definitely possible to do with savings alone”
”If you are just drawing down from a capital sum, and that money is sitting deposited in a non-interest-bearing account then you won’t be taxed on what you draw. If it’s in an account paying interest, the interest will be taxable at savings interest rates If the money is invested elsewhere then it will be more complicated but the same principle applies, the original capital is not taxable when drawn down”
”That’s all correct but be aware that if you have a lot of cash (more than €500k in some areas) and depending upon where you will be living, there could be wealth tax”
”I have non-taxable Roth IRA that I live on here in Spain and that is one of the few things that is not taxable”
”You’d only pay tax if you spend more than 183 days out of 365 in the country”
According to Spainguru Facebook group members, If you are living off savings in Spain and not receiving any income, the principal amount of your savings is generally not taxed. However, any interest earned on your savings would be subject to taxation. Wealth tax may apply if you have a significant amount of cash. The duration of your stay in Spain can also affect your tax liability. It’s advisable to consult a tax expert or authorities for accurate and up-to-date information.
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