Spain's New 30% Savings Tax: What It Means for Investors Considering Andorra (2026)
Spain raised its top savings tax rate to 30% for gains above €300K. Compare with Andorra's flat 10% max — real examples for investors and entrepreneurs.
Spain has quietly rewritten the rules for investors. Starting with the 2025 fiscal year — the one being filed right now during the Renta 2025 campaign — the top marginal rate on savings income (base del ahorro) has jumped from 28% to 30%. It applies to capital gains, dividends, and interest income above €300,000 in a single tax year.
For anyone with a significant investment portfolio, a company sale, or recurring dividend income, this is not a minor adjustment. It’s the sixth increase to Spain’s savings tax rates since 2021, and it widens the gap with Andorra — where savings income is taxed at a flat 10% maximum, with the first €3,000 in dividends and interest fully exempt.
This guide breaks down the new rate structure, calculates the real impact at different income levels, and compares Spain’s savings tax regime with Andorra’s line by line.
Spain’s New Savings Tax Brackets (2025/2026)
Spain taxes savings income — capital gains, dividends, interest, and insurance payouts — separately from employment income. The rates are applied progressively:
| Savings income bracket | Rate (2024) | Rate (2025 onwards) |
|---|---|---|
| Up to €6,000 | 19% | 19% |
| €6,001 – €50,000 | 21% | 21% |
| €50,001 – €200,000 | 23% | 23% |
| €200,001 – €300,000 | 27% | 27% |
| Above €300,000 | 28% | 30% |
The change affects only the top bracket, but that bracket is where most of the money sits for serious investors. If you sell a company, liquidate a large portfolio position, or receive substantial dividends, the marginal rate on everything above €300,000 is now 30%.
How We Got Here
Spain’s savings tax was a flat 18% as recently as 2011. Since then, successive governments have added brackets and raised rates:
- 2012: Split into two brackets (21% / 25%)
- 2015: Three brackets introduced (19% / 21% / 23%)
- 2021: Fourth bracket added at 26% above €200,000
- 2023: Fifth bracket at 27% above €200,000, top rate 28% above €300,000
- 2025: Top rate increased from 28% to 30%
Each increase was presented as temporary or targeted. None has been reversed. The trajectory is clear: Spain is systematically raising the cost of holding and selling investments.
For context on the broader pattern of tax increases, see our analysis of Spain’s 100+ tax hikes since 2018.
What Counts as Savings Income in Spain?
Spain’s “base del ahorro” includes:
- Capital gains: Profit from selling shares, fund units, real estate, cryptocurrency, or any other asset
- Dividends: Distributions from Spanish or foreign companies
- Interest: Bank deposits, bonds, peer-to-peer lending, fixed income
- Insurance payouts: Life insurance surrenders and certain annuity payments
- Rental income from REITs (SOCIMIs) in certain cases
Importantly, Spain does not allow losses from one category to offset gains in another within the savings base without restrictions. Capital losses can offset capital gains, and negative returns from insurance/interest can offset positive ones — but cross-category netting is limited.
Withholding vs Final Tax
Spain withholds 19% on dividends and interest at source. But this is only a prepayment. If your total savings income exceeds €6,000, you owe additional tax when filing your Renta. The withholding does not cap your liability — it’s just credited against the final bill.
Real Impact: How Much More Do You Pay?
Scenario 1: €500,000 Capital Gain (Company Sale)
An entrepreneur sells their shares in an SL for a €500,000 profit.
Under the old rates (2024):
| Bracket | Amount | Rate | Tax |
|---|---|---|---|
| €0 – €6,000 | €6,000 | 19% | €1,140 |
| €6,001 – €50,000 | €44,000 | 21% | €9,240 |
| €50,001 – €200,000 | €150,000 | 23% | €34,500 |
| €200,001 – €300,000 | €100,000 | 27% | €27,000 |
| €300,001 – €500,000 | €200,000 | 28% | €56,000 |
| Total | €127,880 |
Under the new rates (2025):
| Bracket | Amount | Rate | Tax |
|---|---|---|---|
| €0 – €6,000 | €6,000 | 19% | €1,140 |
| €6,001 – €50,000 | €44,000 | 21% | €9,240 |
| €50,001 – €200,000 | €150,000 | 23% | €34,500 |
| €200,001 – €300,000 | €100,000 | 27% | €27,000 |
| €300,001 – €500,000 | €200,000 | 30% | €60,000 |
| Total | €131,880 |
Difference: €4,000 more — a modest increase in absolute terms, but the effective rate rises from 25.6% to 26.4%.
Scenario 2: €1,000,000 Capital Gain
For larger exits, the impact scales:
Old rates: €267,880 (effective 26.8%) New rates: €281,880 (effective 28.2%) Difference: €14,000 more.
Scenario 3: €2,000,000 Capital Gain
Old rates: €547,880 (effective 27.4%) New rates: €581,880 (effective 29.1%) Difference: €34,000 more.
The pattern is clear: the larger the gain, the bigger the absolute and relative impact of the new 30% bracket.
Scenario 4: Recurring Dividends of €400,000/year
A business owner receiving €400,000 in annual dividends pays:
Old rates: €91,880/year New rates: €93,880/year Difference: €2,000/year — €20,000 over a decade.
Andorra’s Savings Tax: A Different World
Andorra taxes savings income under its personal income tax (IRPF), but the structure is fundamentally different from Spain’s.
Capital Gains
Andorra applies a flat 10% rate on capital gains, with significant reductions based on holding period:
| Holding period | Effective rate |
|---|---|
| Less than 1 year | 10% |
| 1 – 5 years | Partial reduction |
| 5 – 10 years | Greater reduction |
| More than 10 years | Potentially 0% |
For long-held assets, the effective rate can fall well below 10%. And there is no progressive bracket system — whether you gain €100,000 or €10,000,000, the maximum rate is 10%.
Dividends
Dividends from an Andorran company in which you hold more than 5% are fully exempt from personal income tax (participation exemption). For portfolio dividends (less than 5% stake in foreign companies), the first €3,000 is exempt, and the remainder is taxed at 10%.
Interest Income
The first €3,000 in interest income is exempt. Above that, the rate is 10%.
No Wealth Tax, No Solidarity Surcharge
Spain imposes a wealth tax (Impuesto sobre el Patrimonio) on net assets above €700,000 (varying by region) plus the Temporary Solidarity Tax (Impuesto Temporal de Solidaridad) on assets above €3 million. These can add 0.2% to 3.5% annually on top of savings income taxes.
Andorra has no wealth tax and no equivalent surcharge.
Side-by-Side Comparison: Spain vs Andorra
€500,000 Capital Gain (Shares Held 3 Years)
| Spain (2025) | Andorra | |
|---|---|---|
| Tax rate | 19–30% progressive | 10% flat (with reduction) |
| Tax owed | €131,880 | ≤ €50,000 |
| Effective rate | 26.4% | ≤ 10% |
| Savings in Andorra | €81,880+ |
€400,000 Annual Dividends (Own Company)
| Spain (2025) | Andorra | |
|---|---|---|
| Tax rate | 19–30% progressive | 0% (participation exemption) |
| Tax owed | €93,880 | €0 |
| Effective rate | 23.5% | 0% |
| Savings in Andorra | €93,880/year |
€200,000 Interest + Dividends (Portfolio)
| Spain (2025) | Andorra | |
|---|---|---|
| Tax rate | 19–23% progressive | 10% (first €3K exempt) |
| Tax owed | €42,380 | €19,700 |
| Effective rate | 21.2% | 9.85% |
| Savings in Andorra | €22,680 |
Corporate Layer: The Full Picture
Many investors don’t hold assets personally — they use a holding company. Here the differences compound.
Spain: Corporate + Personal Tax
A Spanish SL pays 25% corporate tax on profits. When dividends are distributed to the individual shareholder, they’re taxed again at 19–30%. The combined effective rate on corporate profits distributed as dividends:
- Corporate tax: 25%
- Remaining: 75% of profit
- Dividend tax (on 75%): ~23.5% average on €400K = €70,500 on €300K distributed
- Combined effective rate: ~43–48%
Andorra: Corporate + Personal Tax
An Andorran SL pays 10% corporate tax (with reductions to as low as 2% for international trading income). Dividends from your own Andorran company are taxed at 0% (participation exemption).
- Corporate tax: 10%
- Remaining: 90% of profit
- Dividend tax: 0%
- Combined effective rate: 10%
The gap between a 43–48% combined rate in Spain and a 10% rate in Andorra is not marginal. On €1 million in annual company profits, the difference is €330,000–€380,000 per year.
Who Is Most Affected by the 30% Rate?
The new 30% bracket primarily impacts:
1. Entrepreneurs Selling a Business
Any exit above €300,000 in gains triggers the top rate. In Spain’s startup ecosystem, this hits founders, angel investors, and private equity participants.
2. Active Traders and Portfolio Managers
Investors who frequently rotate positions and crystallise gains above €300,000 in aggregate during a single year.
3. Real Estate Investors
Selling a property with more than €300,000 in appreciation — increasingly common in Madrid, Barcelona, and coastal areas after years of price increases.
4. Retirees with Large Portfolios
Systematic withdrawals from investment accounts, pension fund liquidations, and insurance payouts that exceed €300,000 in a single year.
5. Crypto Investors
Spain requires full reporting of crypto gains. Large positions accumulated during 2020–2021 and sold in 2025–2026 can easily exceed the €300,000 threshold. See our cryptocurrency tax guide for details.
Additional Costs in Spain That Don’t Exist in Andorra
The 30% savings rate doesn’t exist in isolation. Spanish investors also face:
| Tax | Spain | Andorra |
|---|---|---|
| Wealth tax | 0.2–3.5% on net assets >€700K | 0% |
| Solidarity surcharge | 0–3.5% on assets >€3M | 0% |
| Inheritance tax | Up to 34% (varies by region) | 0% |
| Financial transaction tax | 0.2% on listed share purchases >€1B cap | 0% |
| Exit tax | 19–30% on unrealised gains (see guide) | 0% |
When you stack these on top of the savings tax, Spain’s total cost of holding and growing wealth is among the highest in Europe.
What About the Beckham Law?
Spain’s special expat regime (the “Beckham Law”) offers a flat 24% rate on employment income for qualifying new residents. But it has critical limitations for investors:
- Does not apply to savings income. Capital gains, dividends, and interest are taxed at the standard 19–30% rates.
- Limited to 6 years. After the regime expires, you face full Spanish rates.
- Wealth tax still applies (though the solidarity surcharge may be reduced in some interpretations).
For someone whose primary income is from investments rather than employment, the Beckham Law offers little relief from Spain’s savings tax.
Making the Move: Practical Considerations
If Spain’s 30% savings rate is the tipping point, here’s what you need to consider before relocating to Andorra.
Residency Requirements
Andorra requires:
- 183+ days of physical presence per year (active residency)
- A minimum €50,000 deposit with the AFA (Autoritat Financera Andorrana) — non-refundable under Omnibus 2
- Proof of accommodation (rental or ownership)
- CASS registration (~€550/month for self-employed)
- Clean criminal record
Spain’s Exit Tax
If you’ve been a Spanish tax resident for 10+ of the last 15 years and hold qualifying assets above the thresholds, you’ll face Spain’s exit tax — taxed at the same 19–30% savings rates on unrealised gains. This is a one-time cost, not recurring, but it requires careful planning.
Break-Even Analysis
For most investors with €300K+ in annual savings income, the tax savings from moving to Andorra recoup any relocation costs within 1–3 years. Use our tax calculator to model your specific situation.
The Trajectory: Where Is Spain Heading?
Spain’s savings tax has increased in every single reform since 2012. The current government has signalled further changes:
- Proposals to add a 33% bracket above €500,000 have been discussed in Congress
- The solidarity surcharge — originally “temporary” for 2023–2024 — has been extended indefinitely
- The wealth tax was made permanent in 2024 after years of being “temporary”
- Bank reporting requirements now cover every transaction, including Bizum payments
For investors planning their next decade, the question is not whether Spain will raise taxes again, but by how much and how fast.
Conclusion
Spain’s new 30% top rate on savings income is the latest in a long series of increases that make the country increasingly expensive for investors. Whether you hold a large portfolio, run a profitable company, or are planning a business exit, the gap between Spain and Andorra has never been wider:
- Spain: 19–30% on capital gains and dividends, plus wealth tax, solidarity surcharge, and potential exit tax
- Andorra: 10% maximum on capital gains (lower with holding period), 0% on dividends from your own company, no wealth tax, no inheritance tax
The numbers speak for themselves. For a detailed comparison tailored to your income and situation, try our free Andorra Tax Calculator — it models Spain, France, UK, Portugal, and 5 other countries side by side.
This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax obligations depend on individual circumstances. Always consult a qualified professional.
Sources: Ley 35/2006 del IRPF, Ley 26/2014 (savings brackets reform), Real Decreto-ley 8/2023, Agencia Estatal de Administración Tributaria (AEAT), Llei 5/2014 de l’IRPF d’Andorra, Govern d’Andorra.
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