Question
What taxes on dividends are there in Spain?
Answers
These are the answers from Spainguru’s Facebook group members:
Community members explained that dividend income in Spain is taxed under the savings tax brackets, which range from 19% to 30% depending on the total amount received. They also noted that non-residents generally face a 19% withholding tax on Spanish-source dividends.
“Dividends and other income generated from holding interests in companies are included in PIT savings income and taxed at a 19% tax rate… a 21% tax rate… a 23% tax rate… a 27% tax rate… and 30 Jun 2025.”
Several users highlighted that Spain applies a separate wealth tax on certain assets, and that rates vary by region. This tax is different from income tax and may apply to expats with significant assets.
“Don’t forget tax on your world wide wealth of you principal.”
“Wealth tax is different by region.”
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Members pointed out that the final tax burden can depend on total income, types of gains, and the autonomous community where you live. Online calculators can help estimate liability but cannot account for every scenario.
“You are going to have to google it because it depends on the types of gains and the total amount of income you make.”
“I believe there may be some differences depending on what region you live in.”
Some participants discussed pensions as well, noting that certain U.S. government pensions may be exempt, while Social Security is generally taxable in Spain.
“Government pensions of certain types are exempt… But Social Security is taxable.”
Many responses emphasized that the most reliable way to understand your tax obligations is to speak with a Spanish tax professional, especially when dealing with foreign investments or mixed income sources.
“You might find something reliable… but the most reliable way would to be to book a consultation with a Spanish tax accountant.”
“I’d recommend getting in touch with Matt Green… he has experience with expats from the US.”
A few users mentioned that Spain feels tax-friendly for lower incomes but heavy for higher ones, although some believe the trade-off is acceptable due to healthcare costs and quality of life.
“Spain is very tax friendly generally if you have low to moderate income and very unfriendly if you have high income.”
“Higher than the US but less than healthcare premiums… Quality of life is quite good too😁”
Another commenter shared the full 2025 dividend tax brackets and pointed out that applicability may differ for non-EU expats and foreign-source dividends.
“Here are the current rates (2025)… Up to €6,000 → 19%… Above €300,000 → 30%.”
One user clarified that Spain has two separate taxes relevant to investors: income tax on worldwide earnings and wealth tax on assets if applicable in your region.
“Annual worldwide income tax and annual asset tax… are 2 separate taxes.”
Conclusion
From this conversation, community members explain that TAxes on dividends in Spain fall under the “savings income” part of personal income tax, with progressive bands from 19% up to 30% depending on the total amount received. There is also a 19% withholding tax mentioned for non-residents receiving Spanish-source dividends, and several users remind others that Spain may tax worldwide income if you are a tax resident.
At the same time, contributors point out that Spain has separate rules for wealth tax, which vary by region, and that income and asset taxes are different concepts. Some see Spain as tax-friendly for low to moderate incomes but less so for higher incomes, and there is ongoing debate and confusion about how pensions, capital gains, and regional rules fit together.
Overall, the group strongly suggests using professional advice rather than relying only on Facebook comments when planning to live off investments and dividends in Spain. Before making big financial moves based on TAxes on dividends and wealth tax rules, many recommend speaking with a Spanish tax advisor who understands expat situations.
FAQ About Taxes on Dividends in Spain for Expats
What are the tax rates on dividends in Spain?
Dividend income in Spain is taxed under the savings income brackets. The rates are progressive: 19% for the first €6,000, 21% up to €50,000, 23% up to €200,000, 27% up to €300,000, and 30% above that. These rates apply if you become a Spanish tax resident.
Are non-residents taxed on dividends from Spain?
Yes, non-residents who receive dividends from Spanish sources typically face a flat 19% withholding tax. This applies even if you do not live in Spain full-time or do not meet tax residency criteria.
Does Spain have a wealth tax?
Spain has a separate wealth tax that depends on the region (autonomous community) where you live. Each region can reduce, adjust, or even fully eliminate the wealth tax. This tax is distinct from income tax and may apply to individuals with higher net worth.
Do regions in Spain have different tax rules for investment income?
Yes. Although national tax brackets apply to dividend income, some regions add surcharges or offer deductions that affect overall tax liability. Because rules differ by region, expats should check local regulations or consult a tax advisor.
Are foreign pensions taxed the same as dividends in Spain?
No. Pensions follow different rules. Certain government pensions may be exempt, while U.S. Social Security is generally taxable in Spain. Other types of pensions—such as state school pensions or private pensions—depend on specific tax treaties and require professional advice.
How can I estimate my taxes on dividends in Spain?
Online tax calculators can provide a general estimate, but they cannot factor in all variables such as regional differences, mixed income types, or wealth tax. For accurate results, it’s best to consult a Spanish tax accountant experienced with expats.
Is Spain tax-friendly for people living off dividends?
Many expats say Spain is tax-friendly for low to moderate incomes, but tax pressure increases for higher-income individuals or those with large assets. However, some also note that lower healthcare costs and quality of life offset the higher tax burden.
Does Spain tax worldwide income for expats?
Yes, once you become a Spanish tax resident (usually after spending more than 183 days per year in Spain), you are taxed on your worldwide income, including dividends from foreign companies.
What is the difference between income tax and wealth tax in Spain?
Income tax applies to earnings such as dividends, pensions, and salaries. Wealth tax applies to your total assets—bank accounts, investments, real estate, and more—depending on regional rules. They are two separate taxes and may both apply in certain situations.
Should I consult a professional before moving to Spain with dividend income?
Absolutely. Because dividend taxation, wealth tax, and regional rules can be complex, expats are strongly advised to speak with a qualified Spanish tax advisor who understands cross-border finances and U.S.–Spain tax implications.
This article is based on personal opinions from the Spainguru community and is not legal advice.
