Spain’s 2025 Tax Overhaul: What Expats and Nomads Need to Know

Spain’s 2025 tax reforms tighten foreign income rules, corporate taxes, and digital economy regulations—key updates for expats, nomads, and remote business owners.
Spain’s 2025 Tax Overhaul: What Expats and Nomads Need to Know
Photo by Alex Vasey / Unsplash

Spain is kicking off 2025 with significant tax reforms that could impact digital nomads, expats, and foreign investors. The new measures, aimed at modernizing Spain’s tax system and increasing compliance, introduce key changes to corporate tax, foreign income reporting, and digital economy regulations. If you’re working remotely from Spain or considering it as your next destination, here’s what you need to know about the country’s evolving tax landscape.

Key Changes in Spain’s 2025 Tax Reforms

Spain’s latest tax overhaul focuses on tightening regulations on foreign income, enhancing digital taxation, and adjusting corporate tax incentives. These measures are designed to increase tax revenues while aligning Spain with broader European tax policies.

1. Stricter Foreign Income Reporting

One of the biggest updates is increased scrutiny on foreign-sourced income. Expats and digital nomads earning income outside of Spain will face stricter reporting requirements, potentially leading to higher tax liabilities for those who do not plan accordingly. If you are a non-resident or spend significant time in Spain, this could affect how your global income is taxed.

2. Corporate Tax Adjustments

Spain is making changes to corporate tax rules, impacting both local businesses and foreign entities operating in the country. New measures may introduce reduced tax benefits for multinational companies while strengthening compliance on cross-border transactions. For remote business owners and freelancers, understanding these shifts is crucial to maintaining a tax-efficient structure.

3. Digital Economy Taxation Expands

Spain has been at the forefront of digital service taxation, and the 2025 reforms further clarify how online businesses, remote workers, and digital entrepreneurs will be taxed. Whether you are a content creator, consultant, or running an e-commerce business, staying compliant with Spain’s evolving regulations will be essential.

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Who Is Affected?

These tax changes will primarily impact:
Expats and digital nomads earning foreign income while residing in Spain.
Remote business owners operating cross-border companies or digital services.
Investors and property owners with financial ties to Spain.
Freelancers and entrepreneurs using Spain as a base for work.

Understanding whether you qualify as a Spanish tax resident (typically based on spending 183+ days in the country per year) is key to determining your tax obligations. If you fall under this category, expect greater enforcement on foreign asset declarations and income disclosures.

How to Prepare for Spain’s New Tax Landscape

If Spain is part of your remote work plan in 2025, here are some steps to stay compliant and minimize tax liabilities:

Assess Your Tax Residency: If you plan to stay in Spain long-term, determine whether you meet tax residency criteria and plan accordingly.

Understand Foreign Income Reporting Rules: Ensure you are aware of any new filing requirements to avoid penalties.

Optimize Your Business Structure: If you operate a remote business, review whether your corporate setup remains tax-efficient under the new rules.

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What This Means for Digital Nomads & Expats

Spain’s 2025 tax reforms highlight a global trend of tightening tax regulations, particularly for remote workers, business owners, and expats. While the country remains a top destination for digital nomads due to its quality of life and visa options, understanding these new tax obligations will be crucial for long-term success.

If you’re earning foreign income while spending significant time in Spain, now is the time to review your tax strategy and stay ahead of regulatory changes.

Check out our other articles in our Global News section for more updates and guides on the latest digital nomad trends.

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Heavnn is a borderless tax technology solution supporting the future of work. We assist international remote workers with the design and implementation of their global tax setups.

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