See the Budget tracker for announcements and effective dates.
Tax in Spain vs UK: how does Madrid compare?
Madrid has a regional income tax scale alongside the national scale. This example uses ordinary full-year resident employee rules, not the separate Beckham law election.
The Spanish calculation deducts employee social contributions before working out taxable employment income. It then applies the state and Madrid scales and their separate personal minimums.
This assumes an indefinite contract, equal monthly pay and a resident under 65. The model leaves out the low-income employment reduction, so it only accepts salaries from £18,000.
The UK side uses England, Wales and Northern Ireland for one single employee with no children, other income, pension contributions or student loans. The person is resident for the full tax year and pays annual employee National Insurance.
This salary result does not include Madrid rent, other living costs, visas, wealth taxes, treaties or moving costs. It cannot decide whether a move is right for you.
At £100,000 gross: Spain take-home is £4,691.13 lower than the UK before rent. UK take-home is £68,557.40 and Spain take-home is £63,866.27. Spain uses the 2026 tax year; the UK uses 2026-27. Review the Spain and UK sources.
| Gross salary | UK take-home | Spain take-home | Difference before rent |
|---|---|---|---|
| £50,000.00 | £39,519.60 | £35,177.52 | -£4,342.08 |
| £75,000.00 | £54,057.40 | £49,650.15 | -£4,407.25 |
| £100,000.00 | £68,557.40 | £63,866.27 | -£4,691.13 |
| £150,000.00 | £91,286.40 | £92,297.87 | £1,011.47 |
In the Spain working, displayed amounts are rounded to pence or cents. The engine calculates with more precision, so individually rounded lines may not add exactly.
How the Madrid example works: £100,000 gross
UK baseline for Spain
- First find the UK allowance of £12,570.00: taxable pay is £87,430.00.
- UK basic band: £37,700.00 at 20% produces £7,540.00.
- UK higher band: £49,730.00 at 40% produces £19,892.00.
- UK additional band: £0.00 at 45% produces £0.00.
- UK Income Tax is £27,432.00; employee National Insurance is £4,010.60 (£3,016.00 at the main rate and £994.60 at the upper rate).
- Subtract both to get UK take-home of £68,557.40.
Spain calculation
- For Madrid, convert £100,000.00 to €119,434.36 at the reference rate.
- Spanish employee social security (indefinite contract): €3,978.94.
- Spanish employee solidarity contribution 0.19%: €11.63.
- Spanish employee solidarity contribution 0.21%: €51.42.
- Spanish employee solidarity contribution 0.24%: €66.27.
- After the modelled employment deduction of €6,108.26, taxable income is €113,326.10.
- National income tax: €12,450.00 at 9.5% gives €1,182.75; €7,750.00 at 12% gives €930.00; €15,000.00 at 15% gives €2,250.00; €24,800.00 at 18.5% gives €4,588.00; €53,326.10 at 22.5% gives €11,998.37; €0.00 at 24.5% gives €0.00; before credits €20,949.12, credits €527.25; result €20,421.87.
- Madrid regional income tax: €13,362.22 at 8.5% gives €1,135.79; €5,642.41 at 10.7% gives €603.74; €16,421.05 at 12.8% gives €2,101.89; €21,894.72 at 17.4% gives €3,809.68; €56,005.70 at 20.5% gives €11,481.17; before credits €19,132.27, credits €506.32; result €18,625.96.
- The Spanish scales total €39,047.83 in tax; employee social charges total €4,108.26.
- Madrid take-home is €76,278.27, converted back to £63,866.27.
Try a Madrid comparison
Enter gross yearly pay in pounds, at least £18,000. The converted amount is an illustration, not an offer from a Spanish employer.
Loading the Spain comparison...
See the calculation
UK working for Spain
Spain working
Sources for the UK and Spain salary figures
HM Treasury: Budget 2026 rates and allowances, UK 2026-27, checked 29 October 2026. BOE: Spanish Income Tax Act, state scale and personal minimum, 2026, checked 29 October 2026. BOE: Madrid regional tax law, 2026, checked 29 October 2026. Spanish Social Security: 2026 contribution bulletin, 2026, checked 29 October 2026. For Spain, the ECB euro foreign exchange reference rates uses a reference rate dated 23 October 2026, checked 29 October 2026.
For the Spain calculation, one EUR is 0.83728 GBP, rounded for this model.
How is employee pay taxed?
The Madrid model includes state and regional income tax, their separate personal minimums, employee social charges and solidarity contributions on higher pay. Comparisons start at GBP 18,000 because lower-income work relief is omitted. It assumes an indefinite contract and equal monthly pay.
Beckham law: Spain's separate inbound worker tax regime.
Tax period: 2026. Main city used: Madrid.
Does this calculate the Beckham law regime?
No. It uses ordinary resident employee treatment and does not assess special expatriate eligibility. Check Spain's special expatriate eligibility rules before using a special-regime rate to estimate tax.
The tax free countries guide explains why preferential treatment needs its own comparison.
Will my UK State Pension increase in Spain?
Spain falls within DWP's European Economic Area coverage for annual increases. Destination tax on the payment still needs checking. The UK pensions abroad guide connects the British payment and savings rules.
What permission do I need to live and work here?
UK citizens need a visa or residence permit to live and work. Visas exist for work (including digital nomad), study, retirement, family and other routes. Apply through Spanish consulates in London, Manchester or Edinburgh. Register on the padron after arrival. Spain does not recognise dual citizenship with the UK.
Where can I check investment residence rules?
Read the Spain investor visa closure and existing-holder rules alongside the investment residence comparison. Immigration permission and tax residence need separate checks.
How much rent does the comparison assume?
Rent estimate in Madrid: €1,337.70/month for a city-centre one-bedroom home; Numbeo: Madrid city-centre one-bedroom rent, checked 25 October 2026; method and exclusions.
Getting residence
Choose a residence route for work, study, retirement or family life through the Spanish consulate. Remote work has its own visa route. After arrival, register as a resident and on the municipal register; contact the foreigners’ office about the residence card.
FCDO, Living in Spain. Source date: . Checked .
Healthcare
Workers access state healthcare through social security contributions. Register at a local health centre with your social security number. A non-working newcomer needs another accepted form of cover, such as private insurance, unless entitled through another route.
Department of Health and Social Care, healthcare in Spain. Source date: . Checked .
An eligible UK State Pension recipient can ask NHS Overseas Healthcare Services for an S1 certificate, which confirms UK-funded healthcare. Register it with the INSS social security office. Eligibility depends on which country is responsible for your healthcare.
Department of Health and Social Care, healthcare in Spain. Source date: . Checked .
Schools
Foreign children have access to compulsory basic education on the same terms as Spanish children. Arrange a place through the local education authority and ask about language support before choosing an address.
BOE, Organic Law 4/2000, article 9. Source date: . Checked .
Banking and money
Lawful EU residents can request a basic payment account here, subject to identity and anti-money-laundering checks.
European Commission, basic payment accounts. Source undated. Checked .
The currency is the euro (EUR).
European Central Bank, euro area countries. Source undated. Checked .
Declare cash of EUR 10,000 or more when entering or leaving the EU.
European Commission, EU cash controls. Source undated. Checked .
Cost of living
Household price level: 91.6 in 2025, EU average 100. Preliminary national comparison; your household budget will differ.
Statistics Norway, Eurostat price level survey. Source date: . Checked .
Driving
A valid UK licence can be exchanged without a theory or practical test. For a new resident, it is recognised for 6 months after obtaining residence; exchange it within that period to keep driving.
FCDO, Living in Spain. Source date: . Checked .
UK pensions
The UK State Pension receives annual increases in Spain.Frozen State Pension guide.
DWP, State Pension annual increases country list. Source date: . Checked .
See the Moving abroad checklist for UK reporting and residence checks, school questions and bank account checks.