Spain Renta 2025: 47% IRPF + Bank Surveillance vs 10% Andorra

Spain’s 2025 income tax campaign opens on April 8, 2026. Millions of taxpayers are already checking their fiscal data on the Agencia Tributaria portal — and this year, several changes will hit harder than expected. A new 30% top rate on savings income, expanded bank surveillance that now tracks every autónomo transaction, and progressive rates that still reach 47% for earners above €300,000.

Meanwhile, 200 kilometers north, Andorra charges a maximum of 10% on personal income, 0% on wealth, and 0% on inheritance. The first €24,000 is completely tax-free.

If you’re filing your Renta 2025 this spring and wondering whether those numbers add up, this article breaks down what changed, what you’ll actually pay, and what the same income would cost you in Andorra.

What Changed in Spain’s 2025 Tax Year

The Renta 2025 — covering income earned between January 1 and December 31, 2025 — introduces several modifications that affect freelancers, investors, and high earners.

New 30% Top Rate on Savings Income

Spain raised the top marginal rate on savings income (dividends, interest, capital gains) from 28% to 30% for amounts exceeding €300,000. The full 2025 savings tax scale is now:

• 19% on the first €6,000
• 21% from €6,001 to €50,000
• 23% from €50,001 to €200,000
• 27% from €200,001 to €300,000
• 30% above €300,000

This applies to everyone — including Beckham Law beneficiaries. If you sold a business, a property, or cashed out investments in 2025, the top slice of your gains is now taxed at 30%.

In Andorra, capital gains from the sale of shares held longer than 10 years are exempt. Dividends from qualifying participations are exempt. For other investment income, the maximum rate is 10%.

Banks Now Report All Autónomo Transactions

From January 2026, Spanish financial institutions must report all transactions by autónomos and small business owners to the Agencia Tributaria. Previously, only transactions above €3,000 triggered reporting. Card transactions are flagged when annual totals exceed €25,000.

The goal is to cross-reference reported income against actual payment flows. For autónomos who relied on cash-based flexibility, this represents a fundamental shift in enforcement.

Andorra has banking transparency under OECD CRS standards, but there is no equivalent system of automatic transaction-level reporting from banks to the tax authority for domestic taxpayers.

Unemployment Exemption and SMI Deduction

Workers earning the Salario Mínimo Interprofesional (SMI) or below — up to €16,576 annually — can now apply a deduction of up to €340. Recipients of unemployment benefits are no longer required to file in most circumstances.

These changes help low earners. But for freelancers, business owners, and professionals earning €60,000+, the picture is different.

Solidarity Wealth Tax Still Active

Spain’s Impuesto Temporal de Solidaridad de las Grandes Fortunas — the solidarity tax on net assets above €3 million — remains in effect for 2025. Rates range from 1.7% to 3.5%. This operates as a national minimum, overriding the 100% exemptions that Madrid and Andalucía offer on the regional wealth tax.

Andorra has no wealth tax of any kind.

The Numbers: Same Income, Two Countries

Let’s compare what a freelancer earning €100,000 annually would pay in each jurisdiction.

Spain (Tax Resident, Catalonia)

Concept	Amount
Gross income	€100,000
IRPF (progressive, ~30% effective)	~€30,000
Social Security (autónomo)	~€4,500–€7,200
Total tax burden	~€34,500–€37,200
Effective rate	~34–37%

In Catalonia — one of the highest-tax regions — the combined state + regional rate on the bracket above €60,000 reaches 45–47%.

Andorra (Tax Resident, Self-Employed)

Concept	Amount
Gross income	€100,000
IRPF (first €24,000 exempt, then 5% to €40,000, 10% above)	~€6,800
CASS (social security, ~6.5% of declared income)	~€6,500
Total tax burden	~€13,300
Effective rate	~13.3%

The difference: roughly €21,000–€24,000 per year. Over five years, that’s €105,000–€120,000.

For someone earning €200,000, the gap widens further. Spain’s effective rate climbs toward 40–42%, while Andorra’s stays near 14–15% (the IRPF caps at 10%, and CASS has a ceiling).

Investors: Selling €500,000 in Shares

In Spain, a €500,000 capital gain from selling shares triggers the full savings scale. The tax due would be approximately €127,360 (blended rate ~25.5%).

In Andorra, if the shares were held for more than 10 years, the capital gain is fully exempt. If held for less, the rate is 10% maximum — with further exemptions available depending on the participation percentage.

Key Dates for Renta 2025

Milestone	Date
Fiscal data available online	March 18, 2026
Online filing opens	April 8, 2026
Phone assistance begins	May 6, 2026
In-person appointments begin	June 1, 2026
Filing deadline	June 30, 2026
Direct debit payment deadline	June 25, 2026

What About the Beckham Law?

Spain’s Beckham Law offers a flat 24% rate on Spanish-source employment income for up to six years. After the 2023 Startup Law reform, it’s available to anyone who hasn’t been a Spanish tax resident in the prior five years.

It’s a good deal — for six years. After that, you face the full progressive scale. And it doesn’t cover all income types: savings income is still taxed at the regular savings rates (up to 30%), and foreign rental income and wealth are excluded from the benefit.

In Andorra, the 10% maximum rate applies permanently. There’s no expiration date and no income-type restrictions. For a detailed breakdown, see our Beckham Law vs Andorra comparison.

Who Should Consider the Move?

Not everyone. Andorra’s Omnibus 2 law (January 2026) raised the barrier to entry. Active residence requires a €50,000 non-refundable deposit to the AFA and setting up a company where you own at least 34%. Passive residence now requires €1,000,000 in qualifying Andorran investments.

But for freelancers, company owners, and investors with annual income above €60,000 who can genuinely establish their life and economic center in the Principality, the tax savings are substantial and compounding.

The math is straightforward: use our tax calculator to compare your specific situation, or explore the full Andorra vs Spain tax comparison.

Frequently Asked Questions

When does the Renta 2025 filing period start?

Online filing opens April 8, 2026. Phone assistance starts May 6, and in-person appointments from June 1. The deadline is June 30, 2026.

What is the new savings tax rate in Spain?

The top rate on savings income (dividends, interest, capital gains) increased from 28% to 30% for amounts above €300,000. This applies from the 2025 tax year onward.

How much tax do freelancers pay in Andorra?

The first €24,000 is exempt. Income from €24,001 to €40,000 is taxed at 5%. Everything above €40,000 is taxed at 10%. CASS social security contributions add approximately 6.5% of declared income.

Can I keep working with Spanish clients from Andorra?

Yes. Many Andorran residents work with international clients, including Spanish ones. The key requirement is genuine residency — spending 183+ days in Andorra and establishing your economic center of activity there.

Does Andorra have a wealth tax?

No. Andorra has no wealth tax, no inheritance tax, and no gift tax. This is one of the most significant differences compared to Spain, where the solidarity tax applies to net assets above €3 million at rates up to 3.5%.