In Spain, the "30% rule" primarily refers to tax and employment regulations regarding employee benefits in kind, which cannot exceed 30% of a worker's total salary, and in some contexts, relates to the cap on specific pension contributions (up to 30% of net income).
For qualifying U.S. expats, Spain's Beckham Law offers something rare in international tax: simplicity and savings. A flat 24% tax rate on Spanish income—and no Spanish tax on your global earnings—can mean thousands saved over six years. But making it work means understanding more than just Spanish tax law.
Spain dropped the 90-day rule.
The rule is a European rather than a Spanish regulation. In addition to considering France's proposals, the government has stated that the ruling is unfair and outdated. However, they can only make changes or drop this rule with the agreement of other members of Schengen.
From July 1, 2025, all short-term rentals must be registered under a new national system. Each property will receive a Rental Registration Number (NRA) required for platforms like Airbnb or Booking.com. Regions such as the Balearic Islands, Andalusia, and Catalonia are already tightening licensing limits.
You must be a non-EU citizen over 18 years of age, with no criminal record. You have to obtain private health insurance and must demonstrate that you have sufficient funds to support yourself and your family in Spain. The income requirement is for twice the IPREM (a salary index used for various grants and allowances).
In calculating the proof of income for non-lucrative residency, you must have an annual income of 400% of IPREM in your bank account. The IPREM for 2025 remains at €600 per month. Therefore, as an individual, you will need to have €2,400 as a regular guaranteed monthly income or a yearly income of €28,800.
If you own property in Spain, you can reside in the country for up to 90 days within a 180-day period without needing a visa. This applies whether you use the property as a vacation home or occasional residence. To stay longer than 90 days, apply for a visa or residence permit.
Residents in Spain – tax rates range from 19% to 47%. EEA tax residents renting property in Spain – a flat rate of 19% is applied to your rental income. Non-EEA tax residents renting property in Spain – if you are not an EEA tax resident, you're liable for tax at a flat rate of 24% on your rental income.
The sooner an eviction process is started the better, as although laws were changed in 2013 and it has become more rapid, the process can still take six to nine months, sometimes longer. Now social services in Spain will also assess if the tenant in a vulnerable situation and this may delay the process.
The UK's departure from the EU has brought about many challenges for British citizens living in Spain. The new residency rules, uncertainty around healthcare, tightening financial situations, and job market difficulties are just a few of the problems they face.
Part 2: Staying in the Schengen Area Past 90 Days
Main visa options for Brits
Requires around £25,000 per year per person plus £6,000 per dependent. You cannot work in Spain on this visa. Digital Nomad Visa: Introduced for remote workers who can show steady income (£24,000+ a year). You can legally live in Spain while working for UK or international employers.
Yes. Spain taxes its tax residents on their pension, retirement, and foreign social security earnings at a rate from 19% to 47%, depending on overall income. Non-tax residents, however, face tax rates of 8% to 40% depending on overall income.
Generally, you can live in Spain for 183 days as a non-fiscal resident. If you spend more than 183 days in Spain, you will have to start paying resident taxes. However, like we have just discussed, there are situations wherein you can apply to pay non-resident tax even if you will be in Spain for more than 183 days.
If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.
You must pay tax even if you don't rent out your second home. As a non-resident, Spain charges you an income tax on the value of your property, not on actual rent. This is called imputed income. It's usually 2% or 1.1% of the cadastral value, taxed at a flat rate of 24% (or 19% if you live in the EU or EEA).
The cheapest places to buy property in Spain are generally inland regions like Extremadura, Castile-La Mancha, and Castile and León, with towns in Ciudad Real (like Almadén) often topping the charts for lowest price per square meter (around €344/m²), but affordable options also exist on the coasts in Murcia (Costa Cálida) and Almería, especially away from prime tourist spots. You can find properties for tens of thousands of euros in rural areas, but expect to look inland or in less-developed coastal zones for the lowest prices.
The possible consequences for staying in Spain or the Schengen Area for more than 90/180 days include: Fines – Depending on the country and how long you've overstayed, you could be made to pay a fine of anything from 500€ to 10,000€. This penalty may be combined with an entry ban.
Except for prescriptions for medicine, access to the public healthcare system, including primary care, specialised care, hospital treatments and emergency care, is free of charge, without co-payments.
Being Wealthy In Spain–The Top 10%
In 2022, the top 10% of earners brought home pre-tax earnings of €95,000 ($97,000), more than nine times the average for the bottom 50% of earners in Spain. In 2023, the top 10% of earners in Spain brought home a combined total of 34% of Spain's income before taxes, as per Statista.
Spain has some of the lowest power prices in Europe, largely thanks to solar and wind. The reduced influence of expensive fossil gas and coal power on the electricity market in Spain, driven by surging wind and solar, has turned the country into one of the cheapest power markets in Europe.