How savings interest is taxed in Spain
Interest from deposits and savings accounts in Spain is taxed as capital income (rendimientos del capital mobiliario) within the personal income tax (IRPF). It goes into the "savings tax base" with its own brackets — it does not add to your employment income.
Spanish savings income tax brackets (2026)
| Savings tax base | Total rate (approx.) |
|---|---|
| Up to €6,000 | 19% |
| €6,000 – €50,000 | 21% |
| €50,000 – €200,000 | 23% |
| €200,000 – €300,000 | 26% |
| Over €300,000 | 28% |
Withholding tax
Spanish banks automatically withhold 19% from interest payments and pay it to the tax authority on your behalf. You receive net interest. If your actual marginal rate is higher than 19%, you pay the difference in your annual tax return.
European bank deposits (Raisin)
Deposits with European banks via Raisin are taxed identically — capital income. The difference: the foreign bank does not apply Spanish withholding, so you receive gross interest and must declare and pay tax in your annual return. Not a tax advantage — just a different payment timing.
Money market funds
Money market funds generate capital gains (not capital income), and only when you redeem (sell) shares. No redemption = no tax event. This makes them more tax-efficient than deposits if you reinvest returns.
Compare all savings products with real APY data at APYData's comparator.
For personal tax advice, consult a tax advisor or the Spanish Tax Agency (Agencia Tributaria).