Italy vs Spain.

Two countries' verified rules for an early retiree, side by side. There is no winner here: a lower cost, a wealth tax and an exit tax pull in different directions, and which ones matter is yours to weigh.

What pays for your life?

Compare the same source of money in both countries. Open the detail to see when residence starts and which values apply after a move. It also shows what the other country may tax and how the treaty handles double tax.

Income source	Italy	Spain
Selling investments	A listed-share or fund-unit gain normally carries 26% tax, with 12.5% for qualifying government bonds. Original purchase cost continues after an ordinary move.	A listed-share or fund-unit gain enters the 19–30% savings-income bands. A rollover can defer gains between qualifying mutual funds, but not ETFs.
Dividends	A listed-share dividend normally carries a final 26% charge. Italy generally gives no credit against that final charge for tax taken abroad.	A listed-share dividend enters the 19–30% savings-income bands. Tax taken abroad can reduce the Spanish bill within the treaty limit.
Crypto	From 2026, most private crypto gains carry 33% tax. Every sale, exchange or spend is taxable, and the holding also faces an annual value charge.	A private crypto sale or spend is a savings-base gain taxed at 19–30%, with no holding-period relief or annual exemption. A crypto-to-crypto exchange is also taxable.
Pension	A foreign occupational or private pension enters the 23–43% national bands plus local surcharges. A qualifying southern-municipality regime can instead charge 7% on foreign income.	A foreign private or occupational pension enters the general income-tax bands, which can reach about 47%. The worker-linked newcomer regime is not available for a pension-only move.
Own company	An Italian company pays 24% company tax plus the regional production tax. A dividend to the resident owner then carries 26% personal tax.	A Spanish company pays 25% company tax, with lower bands for qualifying small and micro companies. A dividend to the owner then enters the 19–30% savings-income bands.

Full income detail: Italy

The full income picture

These are the usual rules for a resident unless a case says otherwise. A new-resident rule, tax wrapper or treaty may change one case without changing the others.

Securities and funds

26% flat substitute tax

A listed-share or fund-unit gain normally carries 26% tax, with 12.5% for qualifying government bonds. Original purchase cost continues after an ordinary move.

Listed shares 26% flat substitute tax: Gain on realisation carries tax at a flat 26% imposta sostitutiva, no matter holding period. The same 26% applies to Italian and foreign directly held shares held by a resident.
Fund and ETF units 26% (12.5% pro-rata on white-list government-bond content): The rate line above gives the resident result. The rule is tested when the asset is sold or otherwise disposed of.
Losses 26% relief value: For this case, capital losses on securities (redditi diversi) offset capital gains of the same category and carry forward for the current and following four tax years. Losses cannot offset 'redditi di capitale' (for example dividends/fund distributions taxed as capital income).
Foreign and US listings 26% on the gain: A resident's gain on a foreign or US-listed share carries tax at 26% like an Italian share. A US-domiciled ETF gain is 26%, but a US fund that is non-EU-harmonised may see its distributions taxed as ordinary income rather than at 26%. Check the treaty for source tax and Italy's relief.
Accumulating funds and annual tax Taxable under the ordinary rule: An accumulating fund is taxed only when units are realised (26%, with the 12.5% government-bond pro-rata). A distributing fund's payouts are taxed on receipt.

Worth checking

The ordinary 26% rate has been stable since 2014. Qualifying government bonds keep a 12.5% result, including through a fund's eligible bond content.

Dividends

26% plus tax taken abroad

A listed-share dividend normally carries a final 26% charge. Italy generally gives no credit against that final charge for tax taken abroad.

Italian company dividend 26% final: A dividend from an Italian company falls under a final 26% withholding/substitute tax. The individual does not add it to the progressive personal income tax base.
Foreign listed-share dividend 26% plus tax taken abroad: A foreign listed dividend carries tax at 26% in Italy. Collected through an Italian intermediary it is taxed on the net-frontier amount (net of tax taken abroad tax) at 26%. Check the treaty for source tax and Italy's relief.
EU or EEA company dividend No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Third-country company dividend No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Fund or ETF distribution 26% (12.5% pro-rata on white-list government-bond content): A fund/ETF distribution carries tax at 26%, with the white-list government-bond content taxed at 12.5% via the inclusion mechanism. Accumulating funds defer tax until the units are sold.
New-resident treatment Special rule: The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.

Worth checking

Italy generally gives no credit against its final 26% dividend charge. Excess source-country tax therefore needs a treaty reclaim.

Crypto

33% (26% for euro e-money tokens)

From 2026, most private crypto gains carry 33% tax. Every sale, exchange or spend is taxable, and the holding also faces an annual value charge.

Sale for money 33% (26% for euro e-money tokens): The sale of crypto to fiat is a taxable realisation. For this case, from 1 Jan 2026 the substitute tax is 33% for ordinary crypto-assets, and 26% only for euro-denominated e-money tokens (MiCAR EU 2023/1114).
Crypto-to-crypto exchange 33% (26% euro-token side): A swap between crypto-assets with different characteristics is a taxable realisation. A mere conversion between euro and a euro e-money token (or redemption at nominal value) is expressly not a realisation.
Spending crypto 33% (26% euro-token): Using crypto to pay for goods or services is a disposal/realisation of the crypto at 33% (26% for euro e-money tokens) on any gain since acquisition.
Holding relief and losses No separate rule: From 2025 there is no holding-period relief and no annual exempt allowance for crypto (the €2,000 threshold is gone). Losses above €2,000 offset crypto gains and carry forward four years.
Staking and lending 26% as capital income (redditi di capitale): Staking and lending rewards are treated as 'redditi di capitale' (financial income), generally taxed at 26% on receipt at market value. A later disposal of the received coin is a separate capital event (33%/26%).
Mining, validation and airdrops Different rules apply: The rate line above gives the resident result. The rule is tested when the income is received.
Private investor or business 33% or 26% capital vs progressive personal income tax business: The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.
Wealth tax and departure tax Taxable under the ordinary rule: Crypto pays a 0.2% annual value levy. The imposta sul valore delle cripto-attivita (foreign-crypto-assets charge), introduced by DLgs 73/2023 to replace foreign-financial-assets charge for crypto.
New-resident treatment Special rule: For this case, foreign-held crypto gains fall inside the 24-bis lump sum or the 24-ter 7% flat for qualifying incomers. Foreign-crypto-assets charge on foreign crypto is separately due unless covered.

Worth checking

The crypto watch depends on the asset classification, source country or treaty. Recheck the stated conditions before acting.

Pensions

Progressive 23–43%

A foreign occupational or private pension enters the 23–43% national bands plus local surcharges. A qualifying southern-municipality regime can instead charge 7% on foreign income.

Italy pension Progressive personal income tax 23–43% plus surcharges: A domestic pension uses the 23%/35%/43% personal income-tax scale plus regional and municipal surcharges. A tax-free area and pension deductions reduce the result at lower incomes.
Foreign state or social-security pension Income-tax bands: A foreign state or social-security pension is taxable in Italy as worldwide income at progressive personal income tax. The specific treaty decides whether Italy exempts it or gives a credit.
Foreign occupational or private pension Progressive 23–43%: The qualifying foreign pensioner can instead elect the 24-ter 7% flat for nine years. Check the treaty for source tax and Italy's relief.
Foreign government or civil-service pension Usually source-state taxed: The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Foreign pension lump sum Income-tax bands: A foreign pension lump sum is normally pension income for an ordinary resident. The treaty can instead give the source state exclusive taxing rights through a specific lump-sum clause.
Special foreign-pension rule 7% flat (24-ter), nine years: A qualifying foreign pensioner can elect a 7% charge on foreign income after moving to an eligible small municipality in southern Italy. The regime lasts for nine tax periods and has detailed residence conditions.

Worth checking

The 7% regime requires a foreign pension and a move to a qualifying southern municipality. It runs for nine years, after which ordinary progressive tax resumes.

If you own a company

26% plus tax taken abroad

An Italian company pays 24% company tax plus the regional production tax. A dividend to the resident owner then carries 26% personal tax.

Company profit 24% company tax plus 3.9% regional company tax: The ordinary resident rule applies each year. Check the stated conditions before using the rate line.
Distribution from an Italian company 26% (integrated about 44–46% with company tax): The rate line above gives the resident result. The rule is tested when the income is received.
Distribution from a foreign company 26% plus tax taken abroad: A dividend from the owner's foreign company is a final 26% for the individual. The same no-credit-against-substitute-tax problem as portfolio dividends (tax taken in the source country tax reclaimable only to the treaty rate at source).
Foreign entity type Special rule: Italy can look through certain foreign entities. A foreign partnership or fiscally-transparent vehicle may be treated as transparent so the 'distribution' is current business/participation income rather than a 26% dividend.
Ownership threshold 26% at any stake (since 2019): Since 2019 the qualified-vs-non-qualified threshold no longer changes the individual's rate on dividends or gains.
Sale of your company stake 26% flat: The rate line above gives the resident result. The rule is tested when the asset is sold or otherwise disposed of.
Salary or director fee Progressive personal income tax 23–43% plus social contributions: Salary or a director fee taken from the company is employment/assimilated income at progressive personal income tax plus surcharges and social contributions. A director fee is also a distinct treaty category.
Social contributions and remuneration risk Special rule: An active owner-director of an Italian company is typically enrolled in social contributions (Gestione commercianti/artigiani or Gestione Separata for administrators, about 24–26%). Remuneration and in some cases minimum contributions apply no matter how little salary is drawn.
Running the company from Italy Special rule: The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.
Controlled foreign company rules Special rule: The rate line above gives the resident result. The rule is tested each year.
New-resident treatment Special rule: Under 24-bis foreign owner-company distributions are within the lump sum. Note the anti-abuse exclusion of gains on substantial foreign shareholdings realised in the first five years (taxed ordinarily).

Worth checking

Running an old foreign company from Italy can move its effective residence or create a taxable business presence. Controlled-foreign-company rules can also attribute low-taxed passive profit.

Review the company and your personal position together before the move.

Interest and cash

26% (12.5% on Italian government or white-list bonds)

Bank and bond interest received by a resident carries tax at a flat 26% substitute tax. Italian and white-list government bonds are 12.5%.

Italy bank or bond interest 26% (12.5% on Italian government or white-list bonds): Interest on bank deposits and corporate bonds carries tax at a final 26%. Interest on Italian public debt and equated/white-list government securities carries tax at the reduced 12.5%.
Foreign bank or bond interest Taxable under the ordinary rule: Foreign interest carries tax at 26% in Italy (12.5% if from a white-list state's government bonds). As with foreign dividends, where the 26% substitute tax is final Italy generally gives no foreign-tax credit for tax taken in the source country tax.
Allowances and extra charges 26% or 12.5%: The rate line above gives the resident result. The rule is tested when the income is received.
New-resident treatment Special rule: Foreign interest is covered by the 24-bis lump sum or the 24-ter 7% flat for qualifying incomers. Italian-source interest stays at 26%/12.5% even under 24-bis.

Rent

21% or 10% by election, else progressive

Italian residential rent can use an optional 21% flat substitute tax, reduced to 10% for regulated agreed-rent leases. Otherwise it uses progressive personal income tax.

Property in Italy 21% or 10% by election, else progressive: A resident landlord can elect a 21% substitute tax on residential rent, reduced to 10% for regulated agreed-rent leases. It replaces personal tax, local surcharges and registration or stamp duty.
Property abroad Income-tax bands: The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
EU or EEA property branch No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Rental deductions Different rules apply: Under ordinary personal income tax, Italian rent receives a 5% lump-sum deduction, with a higher deduction for some agreed-rent cases. The optional flat substitute tax allows no deductions.

Property gains

Exempt

A gain on Italian real estate sold within five years of purchase or construction is taxable. The seller can elect a 26% substitute tax through the notary.

Italy main home Exempt: This case is exempt when the stated conditions are met. The holding period, asset type or treaty can change that result.
Italy investment or second property Different rules apply: An investment/second property sold within five years of purchase or construction produces a taxable gain. The seller can ask the notary to apply a 26% substitute tax at the deed instead of adding it to progressive personal income tax.
Foreign property Different rules apply: Immovable property is taxable where situated. The source state taxes the gain first. Check the treaty for source tax and Italy's relief.
Foreign EU or EEA property branch No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Foreign third-country property branch No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Main-home conditions Exempt under the ordinary rule: The main-home exemption requires the urban property to have been used as the principal residence of the seller or their family for the majority of the ownership period. Likewise any property held more than five years is exempt no matter use.
Starting value after a move Special rule: Italy provides no immigration step-up for real property, but because the domestic gain is exempt after five years. A foreign property already held over five years at arrival is effectively outside the Italian gain no matter pre-move appreciation.
New-resident treatment Special rule: Using 24-bis / 24-ter a within-five-years foreign-property gain that Italy would otherwise tax is covered by the flat regime. For this case, over-five-years foreign gains are outside the Italian base anyway.

Worth checking

Property gains are exempt after five years, or if it was the main home. A long-held home is untaxed on sale.

Royalties

Progressive personal income tax on 75% (60% if under 35) for the author

Royalties carry tax at progressive personal income tax, with a flat 25% deduction for the author's own copyright income (40% if under 35) before tax. Foreign royalties are worldwide income with a treaty credit.

Italy royalties Progressive personal income tax on 75% (60% if under 35) for the author: Copyright/royalty income received by the author/creator carries tax at progressive personal income tax after a lump-sum deduction of 25% (40% if the author is under 35). That is 75%/60% of the gross is taxable.
Foreign royalties Income-tax bands: Foreign royalties are included in Italian worldwide income at progressive personal income tax (after the author deduction) with a credit for tax taken in the source country. Many treaties reduce royalty withholding tax toward zero, but this is pair-specific.
Which rights qualify No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Passive or active Different rules apply: A one-off passive author royalty receives the lump-sum cost deduction. Ongoing organised licensing or creation is professional income with progressive tax, social contributions and possible value-added tax.
Social contributions and value-added tax Special rule: Professional/active licensing can trigger social contributions Gestione Separata (about 26%) and value-added tax registration. The author's pure copyright royalty is generally outside value-added tax.

If you still work

23–43% personal income tax plus about 10% employee social contributions (plus surcharges)

Employment and self-employment use the 23–43% scale plus local surcharges and social contributions. A qualifying inbound worker can exempt 50% of eligible income for five years.

Employment in Italy 23–43% personal income tax plus about 10% employee social contributions (plus surcharges): Salary carries tax at progressive personal income tax (23%/35%/43%) plus regional (1.23–3.33%) and municipal (0–0.9%) surcharges and about 10% employee social contributions. The employer pays about 30% social contributions on top.
Remote work for a foreign employer Income-tax bands: A resident working remotely for a foreign employer is taxable in Italy on worldwide employment income. A foreign employer with an employee working from Italy risks creating an Italian permanent establishment and payroll/social obligations. Check the treaty for source tax and Italy's relief.
Self-employment and consulting Income-tax bands: The rate line above gives the resident result. The rule is tested when the income is received.
Director fees Income-tax bands: Director fees are assimilated to employment income at progressive personal income tax and are a separate treaty category: the state. This applies where the company is resident may tax them no matter where board work is done.
New-resident worker rule 50% personal income tax exemption (60% with a minor child), 5 years: The rate line above gives the resident result. The rule is tested when the income is received.

Two terms that matter in Italy

IVAFE

Italy's annual charge on financial assets held abroad. It sits beside tax on the income or gain from the asset.

Substitute tax

A fixed charge that replaces ordinary tax for a defined income or special regime. Its scope and entry conditions matter more than the label.

Your first tax year and starting values

Two dates matter: when your new country starts taxing you, and which value it uses to work out a later gain. Check both before you move.

When residence starts: Italy treats a person as resident for the whole year when a residence test is met for most of that year. The tests cover habitual abode, main personal ties, physical presence and population registration.
The arrival year: No general split-year. For this case, residence is determined for the whole calendar year.
Dual residence: Population registration is now a rebuttable presumption. If another country also claims residence, the treaty tie-breaker decides through the permanent home, vital interests, habitual abode and nationality tests.
Shares, funds, crypto, an owner-company stake and property: Original purchase cost
The original purchase cost continues after the move. A later taxable gain can therefore include growth from before residence began.

Plain-language key

Withholding tax: Tax taken before the money reaches you, usually in the country where the payment comes from.
Tax credit: Tax already paid abroad can reduce the bill where you live. The reduction is usually capped at the local tax on that same income.
Original purchase cost: What you paid for the asset. A market-value reset replaces that figure with the asset's value when you move.
Income-tax bands: The income is added to your other taxable income. Higher total income can push part of it into a higher band.
Permanent establishment: A taxable business presence. Running a foreign company from your new home can create one even if the company remains registered abroad.

This gives you the starting rule, not your final bill. The country paying the money, your treaty, account, holding period, residence dates and activity can change the result.

Full income detail: Spain

The full income picture

These are the usual rules for a resident unless a case says otherwise. A new-resident rule, tax wrapper or treaty may change one case without changing the others.

Securities and funds

19 / 21 / 23 / 27 / 30% (savings base)

A listed-share or fund-unit gain enters the 19–30% savings-income bands. A rollover can defer gains between qualifying mutual funds, but not ETFs.

Listed shares 19 / 21 / 23 / 27 / 30% (savings base): A directly held listed-share gain uses the full 19–30% savings-income scale shown above. Identical securities use first-in, first-out matching.
Fund and ETF units 19–30% (savings base): A qualifying retail-fund gain uses the 19–30% savings-income scale. A qualifying switch into another fund defers the gain and carries forward the acquisition value and date.
Holding period and allowances No holding-period discount: Spain grants no holding-period relief on securities gains. A share held one day and one held twenty years face the same 19–30% savings scale.
Losses Different rules apply: Capital losses net against capital gains within the savings base. A net loss may then offset up to 25% of the savings-base returns on movable capital (dividends/interest) in the year, and any remainder carries forward 4 years.
Foreign and US listings 19–30% (savings base): A resident's gain on foreign/US listed shares is taxed the same as domestic. Most treaties leave a listed-securities gain to the residence state, so foreign tax on the gain is uncommon. Check the treaty for source tax and Spain's relief.
Accumulating funds and annual tax Taxed only on disposal (no annual deemed charge): Spain has no annual deemed-distribution or advance-tax on an accumulating fund's fund income for individual investors. An accumulating fund is taxed only on disposal, as a 19–30% savings-base gain.

Worth checking

The savings-base top band was 28% in 2024 and became 30% from 1 Jan 2025. Annual State Budgets can move the bands again.

Dividends

19–30% (savings base)

A listed-share dividend enters the 19–30% savings-income bands. Tax taken abroad can reduce the Spanish bill within the treaty limit.

Spanish company dividend 19 / 21 / 23 / 27 / 30% (savings base): The dividend from a Spanish-resident company is capital mobiliario income in the savings base at 19–30%. This payer applies a 19% withholding on account, credited in the annual return.
Foreign listed-share dividend 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Passive or substantial holding 19–30% regardless of holding size: The rate line above gives the resident result. The rule is tested when the income is received.
Fund or ETF distribution 19–30% (savings base): A fund or ETF distribution is investment income taxed at 19–30%. A Spanish payer withholds 19%, while qualifying fund reinvestment can defer a gain.
New-resident treatment Special rule: An eligible inbound worker is taxed under the non-resident income-tax rules on Spanish-source income. Foreign dividends remain exempt in Spain for up to six years.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Worth checking

Beckham's savings scale for Spanish-source income keeps the pre-2025 28% top band (non-resident income tax). A divergence from the ordinary 30% top.

Crypto

19–30% (savings base)

A private crypto sale or spend is a savings-base gain taxed at 19–30%, with no holding-period relief or annual exemption. A crypto-to-crypto exchange is also taxable.

Sale for money 19–30% (savings base): The disposal of a virtual currency for euros or other legal-tender money is a capital gain in the savings base, taxed at 19 / 21 / 23 / 27 / 30%. This gain is the difference between transmission value and acquisition value.
Crypto-to-crypto exchange 19–30% (taxable exchange): The rate line above gives the resident result. The rule is tested when the asset is sold or otherwise disposed of.
Spending crypto 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the asset is sold or otherwise disposed of.
Staking and lending 19–30% (capital mobiliario, savings base): The rate line above gives the resident result. The rule is tested when the income is received.
Mining, validation and airdrops Income-tax bands: The rate line above gives the resident result. The rule is tested when the income is received.
Private investor or business Savings base (passive) vs general base plus self-employed social contributions (professional): A passive investor uses the savings-income rules, while habitual organised trading or mining can become business income. Self-employed social contributions then apply.
Wealth tax and departure tax Special rule: The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.
New-resident treatment Foreign crypto gains exempt (eligible inbound worker): Under Beckham, foreign-source capital gains (which include gains on crypto held/disposed abroad) are exempt in Spain. Worldwide assets are outside Spanish wealth tax (only Spanish assets taxed).

Worth checking

A crypto exchange is a taxable barter transaction under the current interpretation. Staking classification and the foreign-crypto reporting form remain separate questions.

Pensions

Progressive up to about 47% (residence usually taxes)

A foreign private or occupational pension enters the general income-tax bands, which can reach about 47%. The worker-linked newcomer regime is not available for a pension-only move.

Spain pension Progressive about 19–47% (general base): A Spanish-source pension is general-base income aggregated with other general income and taxed at progressive rates (the state scale to 24.5% plus the autonomic scale, top about 47%). For this case, pension income qualifies for the general employment/pension deduction (rendimientos del trabajo) but has no flat rate.
Foreign state or social-security pension Progressive up to about 47% (subject to treaty): A foreign state or social-security pension is included in worldwide general-base income at progressive rates once the reference person is an ordinary Spanish resident. Many treaties give the residence state the taxing right over social-security pensions, some reserve them to the source state.
Foreign occupational or private pension Progressive up to about 47% (residence usually taxes): The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Foreign government or civil-service pension Usually source-state only: A government/civil-service pension has its own treaty article: it is usually taxable only in the paying (source) state. This applies unless the recipient is a Spanish national and resident, in which case Spain taxes and the source state steps back.
Foreign pension lump sum No safe answer yet: No safe answer is shown for this exact case yet. Check the facts and treaty before relying on a result.
Special foreign-pension rule None for a retiree (Beckham needs a work trigger): Spain has no special foreign-pension regime for a relocating retiree. The Beckham regime would exempt foreign pension income (Spanish-source income only) but is available only.

Worth checking

Spain has renegotiated pension articles with some states (for example the UK treaty). Watch for the treaty's split between social-security, private and government pensions.

If you own a company

19–30% (savings base)

A Spanish company pays 25% company tax, with lower bands for qualifying small and micro companies. A dividend to the owner then enters the 19–30% savings-income bands.

Company profit Taxable under the ordinary rule: A Spanish company pays corporate income tax (company tax) at 25% general. For this case, newly created companies pay 15% for the first profitable year and the next. In 2025 a qualifying small company pays 24% and a micro company with under €1 million of turnover 21–22%, both rates still tapering down.
Distribution from a Spanish company 19–30% (savings base): The distribution from the owner's Spanish company is a dividend in the savings base at 19–30%, with a 19% withholding on account. The corporate-level tax already paid is not credited at the personal level (classic economic double taxation).
Distribution from a foreign company 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Foreign entity type Special rule: Spain generally respects a foreign company as opaque, but a transparent foreign vehicle (partnership, US limited liability company, certain funds) can be looked through. The transparencia fiscal internacional rules can attribute the foreign company's passive income to the Spanish resident before any distribution.
Ownership threshold Special rule: Thresholds that matter for the owner (not for the dividend rate). Controlled foreign companies bites at more than 50% control of a low-taxed foreign entity with passive income.
Sale of your company stake 19–30% (savings base): For this case, sale of the owner's shares is a savings-base gain at 19–30%. This applies if the owner instead leaves Spain holding the stake.
Salary or director fee Income-tax bands: Salary from the owner's company is general-base employment income at progressive rates (about 47% top). Director fees are also general-base employment income domestically and have their own cross-border treaty article (directors' fees).
Social contributions and remuneration risk Special rule: A controlling owner-director normally enters the self-employed social-security system. Its minimum monthly contribution base is higher than the ordinary self-employed base.
Running the company from Spain Special rule: Running a foreign company from Spain can make it Spanish tax-resident when its effective management and control sit there, or create a Spanish permanent establishment. That can expose worldwide company profit or the establishment's profit to Spanish corporate tax.
Controlled foreign company rules Special rule: Spain's transparencia fiscal internacional attributes a low-taxed foreign controlled company's passive income to the Spanish resident before distribution. This applies where control exceeds 50% and the foreign tax is under 75% of the Spanish tax that would apply (with an EU-substance carve-out).
New-resident treatment Foreign distributions exempt (eligible inbound worker): The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.

Worth checking

A working company owner can face a minimum self-employed contribution base and related-party market-pay rules. Exit tax and controlled-foreign-company rules remain separate risks.

Review the company and your personal position together before the move.

Interest and cash

19–30% (savings base)

Interest (bank and bond) is savings-base income at 19–30%. Foreign interest same scale, foreign tax credited.

Spain bank or bond interest 19–30% (savings base): The rate line above gives the resident result. The rule is tested when the income is received.
Foreign bank or bond interest 19–30% (savings base): Foreign interest is savings-base income at 19–30%. Tax taken abroad can be credited up to the Spanish tax on that interest. Check the treaty for source tax and Spain's relief.
Allowances and extra charges No general savings allowance: Spain has no general exempt savings/interest allowance and no separate social levy on interest. Domestic interest carries a 19% withholding on account.
New-resident treatment Foreign interest exempt (eligible inbound worker): Under Beckham foreign interest is exempt (Spanish-source income only), for up to 6 years, for an eligible inbound worker. The ordinary resident in this comparison keeps the 19–30% baseline.

Rent

General base, up to about 47%

Rental income is general-base income at progressive rates up to about 47%. For this case, residential lettings get a large net-income reduction (60% general, tiered 50–90% for new contracts from 2024).

Property in Spain General base, up to about 47%: Net rental income (rent minus deductible expenses including mortgage interest, repairs, depreciation at 3%) is general-base income at progressive rates. For a dwelling let as a habitual residence a 60% reduction applies on net income.
Property abroad General base up to about 47%: The rate line above gives the resident result. The rule is tested when the income is received. The treaty can change source-country tax and relief.
Rental deductions 60% residential reduction (tiered 50 / 60 / 70 / 90% from 2024): The rate line above gives the resident result. The rule is tested when the income is received.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Worth checking

The tiered reductions introduced in 2023 depend on stressed-zone, rent-limit and tenant conditions. The 60% fallback remains separate.

Property gains

19–30% (savings base)

For this case, gain on a property sale is savings-base income at 19–30%. Main-home gain is exempt if reinvested in a new main home or if the seller is 65+.

Spain main home 19–30% (savings base): A gain on the Spanish main home is savings-base income at 19–30%. Exempt if the full proceeds are reinvested in a new main home within 2 years, or entirely exempt if the seller is 65 or older.
Spain investment or second property 19–30% (savings base): A Spanish investment-property gain uses the 19–30% savings-income scale without the main-home exemption. A separate municipal tax on urban land-value growth can also apply.
Foreign property 19–30% (savings base), source credit: The resident's gain on foreign property is savings-base income at 19–30%. Immovable property is normally taxable first in the situs state. Check the treaty for source tax and Spain's relief.
Main-home conditions Exempt under the ordinary rule: This case is exempt when the stated conditions are met. The holding period, asset type or treaty can change that result.
Starting value after a move Historic cost (no arrival step-up): Spain does not rebase property to market value on arrival. The acquisition value remains historic cost, so pre-move appreciation is taxed on a later disposal while resident.
New-resident treatment Foreign property gains exempt (eligible inbound worker): Under Beckham, foreign-property gains are exempt in Spain (Spanish-source only) for eligible inbound workers. A Spanish-property gain remains taxed at non-resident income tax rates.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Worth checking

The municipal land-value tax is a separate transfer levy with its own base. A buyer acquiring Spanish property from a non-resident must also withhold 3% through the prescribed form.

Royalties

General base (creator) or 19–30% savings base (assignor)

Royalties split by who holds the right. A creator's own royalties are general-base income (with possible reductions).

Spain royalties General base (creator) or 19–30% savings base (assignor): Royalties a creator earns from their own work are general-base income (rendimientos del trabajo or actividad economica), taxed progressively. Royalties from ceding the use of intellectual/industrial property you did not create are rendimientos del capital mobiliario in the savings base at 19–30%.
Foreign royalties General base or 19–30% plus source credit: The source state may withhold, relieved by credit up to Spanish tax. Check the treaty for source tax and Spain's relief.
Which rights qualify Different rules apply: The savings-base treatment covers income from ceding the use of copyright, patents, trademarks, know-how and similar to third parties. This applies where the recipient is not the author and it is not a business activity.
Passive or active Savings base (passive) vs general base plus self-employed social contributions (active): The rate line above gives the resident result. The rule is tested when the relevant tax event occurs.
Social contributions and value-added tax Special rule: Royalties from a self-employed creative activity attract self-employed social contributions. The licensing supply can also fall within value-added tax.

Worth checking

The creator-vs-assignor line is the main point (general base up to about 47% vs savings base 19–30%). The 30% irregular-income reduction and value-added tax status also move the result.

If you still work

Progressive about 19–47% plus about 6.5% employee social security

Employment and self-employment use progressive general-income rates up to about 47%. Employees pay about 6.5% social security. Self-employed contributions depend on income.

Employment in Spain Progressive about 19–47% plus about 6.5% employee social security: Employment income earned while working in Spain is general-base income at progressive rates (about 47% top). Employee social-security contributions around 6.5% (capped) and large employer contributions (about 30.65% plus accident rate).
Remote work for a foreign employer Income-tax bands: The Spanish resident working remotely for a foreign employer is taxed on that employment income in the general base at progressive rates (worldwide employment income). The foreign employer risks creating a Spanish permanent establishment or a payroll/social-security obligation.
Self-employment and consulting General base up to about 47% plus income-based self-employed social contributions: The rate line above gives the resident result. The rule is tested when the income is received.
Director fees Income-tax bands: Director fees are general-base income and have their own cross-border treaty article (directors' fees). This rule typically lets the company's country of residence tax them no matter where the director works.
New-resident worker rule Special rule: The rate line above gives the resident result. The rule is tested when the income is received.

Worth checking

Beckham eligibility hinges on the reason for the move (work/entrepreneur trigger) and a 5-year prior-non-residence test. The digital-nomad extension (2023) widened it but a retiree still cannot use it.

Two terms that matter in Spain

Savings base

Spain's separate tax calculation for most investment gains, dividends and interest. It uses its own progressive rates rather than the general income bands.

Impatriate regime

A worker-linked new-resident regime that can limit Spanish tax on some foreign income. A pension-only move does not qualify by itself.

Your first tax year and starting values

Two dates matter: when your new country starts taxing you, and which value it uses to work out a later gain. Check both before you move.

When residence starts: Spain applies a whole-year residence test. More than 183 days, a Spanish centre of economic interests, or a qualifying family presumption can establish residence.
The arrival year: Spain has no split-year treatment. A person is resident or non-resident for the entire calendar year (the tax year is the calendar year and cannot be broken).
Dual residence: A mid-year mover can be claimed by Spain and the former country for the same year. The applicable treaty tie-breaker must resolve that overlap.
Shares, funds, crypto, an owner-company stake and property: Original purchase cost
The original purchase cost continues after the move. A later taxable gain can therefore include growth from before residence began.

Plain-language key

Withholding tax: Tax taken before the money reaches you, usually in the country where the payment comes from.
Tax credit: Tax already paid abroad can reduce the bill where you live. The reduction is usually capped at the local tax on that same income.
Original purchase cost: What you paid for the asset. A market-value reset replaces that figure with the asset's value when you move.
Income-tax bands: The income is added to your other taxable income. Higher total income can push part of it into a higher band.
Permanent establishment: A taxable business presence. Running a foreign company from your new home can create one even if the company remains registered abroad.

This gives you the starting rule, not your final bill. The country paying the money, your treaty, account, holding period, residence dates and activity can change the result.

At a glance.

Price it in your money

Tell me where you live now and what you spend a month, and every cost here becomes your number: the same life, priced country by country, in your own currency.

Where you live now

You spend, per month

Shown in

A guide, not a quote. I move your monthly spend by each country’s official price level (Eurostat and the World Bank, whole-economy, EU-27 = 100). No exchange rates, so it stays in your own currency. But averages hide rent and the city you pick, and changing country is rarely a straight swap. Read these as the right ballpark, then price the real thing.

Measure	Italy	Spain
Cost of living	97	92
A €2,500-a-month life	€2,430/mo	€2,290/mo
The ×30 number it implies	€875,000	€824,000
Housing to buy	€2,741/m²	€3,739/m²
Housing to rent	€17.4/m² · Rome	€27.1/m² · Madrid
Housing vs the EU	−7%	−3%
Entry rules
The route in	Elective residence	The non-lucrative visa
Golden visa	Open	Closed
Years to a passport	10 yrs	10 yrs
The patterns each carries
Lower tax if you hold	no	no
Yearly tax on holdings	yes	yes
Taxes unsold gains	no	no
Exit tax	no	yes
Deals for new residents	yes	no
No wealth tax	no	no
Private crypto gains can be exempt	no	no
Resident dividend tax at 10% or less	no	no
Foreign pension rule or regime	yes	no

A “yes” is not a point scored: “no wealth tax” and “exit tax on leaving” pull opposite ways. Read the column against your own plan, not as a score.

Price the same life in each: Italy · Spain

The tax rules, in full.

Italy

Nothing till you sell. But a 0.2% skim on the pot, every year.

The annual skim

Italy takes about 0.2% of your portfolio's value every year, called the imposta di bollo when it's held with an Italian intermediary, IVAFE when it's held abroad. Small print, wealth-tax-shaped effect: a permanent extra drag your plan has to fund.

Exit tax

None for ordinary portfolio investors: the first tax event on your shares is the actual sale, even after you've moved away. True as of 2026; the EU is actively studying exit taxes on wealth migration, so re-check before building a leaving plan on it.

The wrapper

The PIR can zero the 26% on gains after five years held, but it forces most of the money into Italian and EU companies, which fights a global index strategy.

Worth watching

The 2026 budget doubled the financial-transaction tax and re-priced the newcomer flat tax. Italy moves something every budget round. Date-check any figure here before acting on it.

The full Italy page

Spain

Cheap to live, but it taxes having.

Wealth tax

Spain taxes wealth every year (the patrimonio) plus a separate state levy on large fortunes. A wealth tax is charged whether your portfolio went up, down or nowhere: in effect a permanent extra withdrawal happening before you've spent a cent, which raises the rate your plan must sustain, and so raises your number.

The regional layer

How hard it bites varies by region, and regional politics move it yearly. The state levy on large fortunes, brought in as temporary, has been extended while the wider wealth-tax review stays unfinished.

Exit tax

Spain has an exit tax for big portfolios, but only for someone who's been Spanish tax resident for at least ten of the previous fifteen years: broadly, covered shares and fund holdings worth €4 million, or a 25%+ company stake worth €1 million or more.

Worth watching

The regional politics are the moving part: what your region charges this year is a fact to re-check, not remember.

The full Spain page

Other comparisons

None of this is tax or investment advice: it's education, kept deliberately at the level that survives fact-checking. Rules shift with every budget round; the specifics of your situation belong with a licensed adviser in your country. I'm happily not one.

Italy verified 8 July 2026 · Spain verified 20 July 2026. What's changed on the map

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