Tax rates in Valencia, Spain for residents and non-residents combine national rules with the Generalitat Valenciana’s own regional scales, and the two produce very different bills depending on whether you live there or simply own property. Residents pay progressive income tax that reaches a combined 54% at the top, along with regional wealth, inheritance, and property transfer taxes that Valencia sets independently of Madrid or Andalusia. Non-residents who own Valencia property pay a flat rate on imputed or rental income and face a 3% withholding when they sell.
Who Counts as a Valencia Tax Resident
Spain treats you as a tax resident if you spend more than 183 days in Spanish territory during a calendar year. Sporadic absences still count toward that total unless you can prove tax residency in another country. Physical presence is not the only trigger: you can also be classified as a resident if the main base of your economic activities or interests sits in Spain, even indirectly. A third presumption applies to families. If your spouse and underage children live in Spain, the tax authorities may presume you are also a resident unless you demonstrate otherwise.
Once classified as a Spanish tax resident, your regional obligations depend on which autonomous community you inhabit. Living in Valencia means the Generalitat Valenciana’s rates and deductions apply to the regional portion of your tax bill, administered by the Agència Tributària Valenciana alongside Spain’s national Agencia Estatal de Administración Tributaria.
Income Tax Rates for Residents
Spain’s personal income tax, the IRPF, splits into a state portion and a regional portion. Both apply to the same taxable base, so the effective rate on any slice of income is the sum of the two. The state brackets for the 2025 tax year, filed during 2026, run from 9.50% on the first €12,450 of taxable income up to 24.50% on income above €300,000.
Valencia’s regional scale has eleven brackets:
- Up to €12,000: 9.00%
- €12,000 to €22,000: 12.00%
- €22,000 to €32,000: 15.00%
- €32,000 to €42,000: 17.50%
- €42,000 to €52,000: 20.00%
- €52,000 to €62,000: 22.50%
- €62,000 to €72,000: 25.00%
- €72,000 to €100,000: 26.50%
- €100,000 to €150,000: 27.50%
- €150,000 to €200,000: 28.50%
- Above €200,000: 29.50%
Adding the two top rates together, Valencia’s maximum combined marginal rate reaches 54% on income above €300,000.1Tax Agency. Community of Valencia2Tax Agency. Gravamen Estatal Someone earning €50,000 pays combined marginal rates in the low-to-mid 30s on the top portion of their income. The system is steeply progressive at the upper end and moderate for middle earners.
Residents report worldwide income on Modelo 100, which captures wages, investment income, rental earnings, and deductible items like social security contributions.3Tax Agency. Form 100 – Personal Income Tax Annual Statement
Capital Gains and Investment Income
Profits from selling assets, dividends, and interest income fall under the savings tax base, which is taxed at separate national rates rather than the regional income scale. The 2026 brackets are 19% on the first €6,000, 21% from €6,000 to €50,000, 23% from €50,000 to €200,000, and 28% above €200,000. These rates apply uniformly across Spain regardless of your autonomous community.
When you sell a property in Valencia and make a profit, the gain is calculated as the difference between your purchase price (plus documented improvement costs) and the sale price. That gain enters the savings base and is taxed at the rates above, on top of any municipal plusvalía tax owed on the same transaction.
The Beckham Law for New Arrivals
Workers relocating to Spain who haven’t been Spanish tax residents in the five preceding years can opt into a special regime under Article 93 of the IRPF law, commonly called the Beckham Law. Qualifying individuals pay a flat 24% on Spanish-sourced income up to €600,000, with income above that threshold taxed at 47%. The regime lasts for the tax year you arrive plus the following five years.4Tax Agency. Special Regime for Expatriates Art 93 Personal Income Tax Law
Eligibility requires that your move results from a new employment contract, appointment as a company director, launch of an entrepreneurial activity, or work for an emerging startup as a highly qualified professional. Professional athletes are excluded. Remote workers holding Spain’s digital nomad visa also qualify as long as the work is performed exclusively through digital means.
The trade-off matters. You’re taxed only on Spanish-sourced income rather than worldwide income, but you cannot claim most regional deductions available to ordinary residents. Whether the flat rate saves you money depends on your income level and where that income originates. For high earners with primarily Spanish employment income, the savings against the 54% top combined rate can be substantial.
Wealth Tax
Valencia levies a regional wealth tax (Impuesto sobre el Patrimonio) on the net value of a resident’s global assets measured as of December 31 each year. The Valencian Community sets a personal exempt amount of €1,000,000, more generous than the national default of €700,000. A primary residence is exempt from the calculation up to €300,000 in value.5Tax Agency. Treatment of the Main Residence in Wealth Taxation
Net wealth is calculated by adding all assets (real estate, bank balances, investments, vehicles, art, jewelry) and subtracting all debts. Real estate is valued at the highest of three figures: the cadastral value, the acquisition price, or the value verified by the tax administration. If your net wealth after the exempt amount and residence allowance is positive, you file Modelo 714 and pay.6Tax Agency. Form 714 Wealth Tax
Above €3,000,000 in net wealth, a national supplementary tax called the Impuesto Temporal de Solidaridad de las Grandes Fortunas kicks in as a top-up. Whatever you already paid at the regional level gets credited against the solidarity tax liability.7Tax Agency. Temporary Solidarity Tax on Large Fortunes Because Valencia actually collects its regional wealth tax, most residents see the solidarity tax fully or partially absorbed by their regional bill. It primarily targets residents of regions that zeroed out the wealth tax.
Inheritance and Gift Tax
Valencia offers one of Spain’s most generous inheritance tax breaks for close family. Group I heirs (children under 21) and Group II heirs (children over 21, spouses, and parents) benefit from a 99% reduction on the calculated tax liability for both inheritances and gifts. In practice, close family members pay roughly 1% of what the full tax bill would otherwise be. The reduction also applies to registered civil partnerships.
On top of the 99% reduction, Valencia provides personal allowances that reduce the taxable base before any rate is applied: €100,000 for Group II heirs, and €100,000 plus €8,000 for each year the heir is under 21, capped at €156,000, for Group I heirs. A separate 95% deduction applies to inheriting the family home, up to €150,000 per beneficiary, but only if the heir keeps the property for at least five years.
Inheritances are reported on Modelo 650 and gifts on Modelo 651.8Agencia Estatal Boletín Oficial del Estado. Orden HAP/2488/2014 – Aprobacion de los Modelos 650, 651 y 655 de Autoliquidacion del Impuesto sobre Sucesiones y Donaciones The standard deadline for filing an inheritance return is six months from the date of death. You can request a single six-month extension, but the request must be submitted no later than the fifth month after the death. Missing the deadline without an extension triggers surcharges.
Property Taxes: Buying, Owning, Selling
Property Transfer Tax on Purchase
Buying a resale property in Valencia triggers the Impuesto sobre Transmisiones Patrimoniales. The standard rate is 10%, dropping to 9% starting June 1, 2026. Buyers under 35 and certain vulnerable groups qualify for a reduced rate of 6%. New-build purchases from developers are subject to VAT at 10% instead, plus stamp duty.
You file this tax using Modelo 600 through the Agència Tributària Valenciana, including the property’s cadastral reference number and the deed of sale signed before a notary.9Agència Tributària Valenciana. Modelo 600 – ATV The filing deadline is 30 business days from the date of the public deed.
Annual Property Tax
The Impuesto sobre Bienes Inmuebles (IBI) is a local annual tax on property ownership, collected by the municipality or, in many Valencian towns, by the Suma Gestió Tributària agency.10Suma Tax Administration. What Is Suma It runs as a percentage of the property’s cadastral value, with municipal rates generally between 0.4% and 1.1%. IBI is typically collected via direct debit, and late payments attract surcharges.
Plusvalía on Sale
When you sell, donate, or bequeath urban property, the municipality charges a tax on the increase in land value, known as plusvalía. Since a 2021 Constitutional Court ruling struck down the old method, sellers choose between two formulas and pay whichever produces the lower amount. The objective method multiplies the cadastral value of the land by a government-set coefficient tied to years of ownership, then by the municipal rate. The real gain method multiplies the actual profit from the sale by the percentage of total value attributable to the land, then by the municipal rate. Municipal rates can reach 30% for cities with more than 100,000 inhabitants. If you sell at a loss, no plusvalía is owed, but you must still file to prove the loss.
Tax Rates for Non-Residents Who Own Valencia Property
Imputed Income on a Vacant Property
Even if your Valencia property sits empty and generates zero rental income, Spain taxes non-residents on a fictional imputed income based on the cadastral value. If the cadastral value was revised within the last ten years, the imputed base is 1.1% of that value; for older valuations, it’s 2%. The resulting amount is then taxed at 19% for EU and EEA residents or 24% for everyone else. You report and pay this annually on Modelo 210.11Tax Agency. Form 210 IRNR Instructions
Rental Income
Non-residents who rent out Valencia property owe tax on that rental income, also filed through Modelo 210. EU and EEA residents pay 19% on net income after deducting expenses like insurance, IBI, mortgage interest, repairs, and a 3% depreciation allowance on the building’s acquisition cost (excluding land). These deductions are prorated for the portion of the year the property was rented. Non-EU residents pay 24% on gross rental income with no deductions allowed.
The 3% Buyer Retention on Sale
When a non-resident sells property in Spain, the buyer is legally required to withhold 3% of the total purchase price and remit it to the tax agency using Modelo 211 within one month of the sale. This acts as a prepayment toward the seller’s capital gains tax. If the seller’s actual liability is lower than the 3% retention, they can request a refund. If the buyer fails to make this withholding, the property itself can become liable for the debt.
Foreign Asset Reporting for Residents
Spanish tax residents who hold assets outside Spain face a separate informational filing. If the combined value of foreign assets within any single category exceeds €50,000, you must file Modelo 720 with the Agencia Tributaria. The three categories are tracked independently: bank accounts abroad, investments (shares, funds, pensions, life insurance), and real estate outside Spain.
The threshold applies per category, not in aggregate. You might have €40,000 in a foreign bank account and €200,000 in overseas investments, and only the investment category would trigger a filing. After the initial declaration, you file again only if any previously reported category increases by more than €20,000, or if you close or sell assets within that category.12Tax Agency. How to Calculate the Limit That Requires Declaration
Spain originally imposed severe penalties for non-compliance, but a 2022 European Court of Justice ruling struck down the disproportionate fines. Standard late-filing penalties still apply, and failing to report foreign assets can trigger a presumption that the assets represent undeclared income.
US Citizens Living in Valencia
Americans and green card holders in Valencia face a specific problem: the United States taxes its citizens on worldwide income regardless of where they live. The Convention Between the United States and Spain for the Avoidance of Double Taxation, signed in 1990 and amended by a 2013 protocol, provides relief.13Internal Revenue Service. Spain – Tax Treaty Documents
Most Americans in Valencia use the Foreign Tax Credit to offset their US liability by the Spanish tax already paid. Because Spain’s rates generally exceed US rates at the same income levels, the credit often eliminates the US tax bill entirely on Spanish-sourced income. You’ll still need to file a US return each year, plus the FBAR (FinCEN 114) if your foreign accounts exceed $10,000 at any point during the year. Americans who also trigger Modelo 720 face overlapping but distinct reporting obligations to both countries.
Filing Deadlines for 2026
Regional taxes in Valencia (inheritance, gift, property transfer, and wealth tax) are filed through the Agència Tributària Valenciana, which requires a digital certificate or the Cl@ve identification system.14Agència Tributària Valenciana. Agencia Tributaria Valenciana National taxes like the IRPF and Modelo 720 go through the AEAT. Filing the wrong form with the wrong agency creates delays and potential penalties.
- IRPF (Modelo 100) for 2025 income: April 2 through June 30, 2026. Direct debit filings must be submitted by June 25.
- Modelo 720 (foreign assets): January 1 through March 31, 2026, covering assets held as of December 31, 2025.
- Wealth tax (Modelo 714): filed alongside the IRPF, same June 30 deadline.
- Non-resident imputed income (Modelo 210): the entire calendar year following December 31 of the accrual year.
- ITP (Modelo 600): 30 business days from the date of the notarial deed.
- Inheritance tax (Modelo 650): six months from the date of death, extendable by six months if requested before the fifth month.
For residents with complex international situations involving foreign income, treaty claims, or multi-country asset structures, a tax advisor who specializes in cross-border work is worth the cost. A standard gestor can handle straightforward domestic filings, but international planning sits outside their typical scope.