How is interest on your savings taxed in Spain?
Interest you receive from a time deposit, an interest-bearing account, or any savings product in Spain is taxed as investment income under the personal income tax (IRPF). It is not added to your salary: it goes into the savings tax bracket, which has its own tax brackets.
Personal Income Tax Brackets for Savings Income in 2026
| Taxable savings base | Federal tax rate | Regional rate (average) | Approx. total rate |
|---|---|---|---|
| Up to €6,000 | 9.5% | 9.5% | 19% |
| €6,000 – €50,000 | 10.5% | 10.5% | 21% |
| €50,000 – €200,000 | 11.5% | 11.5% | 23% |
| €200,000 – €300,000 | 13% | 13% | 26% |
| Over €300,000 | 14% | 14% | 28% |
Most savers with moderate interest income are taxed at 19% (up to €6,000 in annual savings income).
Withholding tax: what the bank automatically deducts
When you receive interest, the bank withholds 19% directly and pays it to the IRS on your behalf. You receive the net amount. When you file your tax return, that 19% already paid is deducted from what you owe:
- If your marginal savings tax rate is 19%: you pay nothing more on your tax return.
- If your savings income exceeds €6,000: you will pay the difference between your tax rate (21%, 23%, etc.) and the 19% withheld.
- If you are not required to file a tax return: you can request a refund of the withholding.
Practical example: interest-bearing account at 2.5%
You have €20,000 in an account with a 2.5% APR for one year:
- Gross interest: €500
- Withholding (19%): €95 — the bank automatically deducts this
- Net interest received: €405
- For tax purposes: €500 counts toward the savings base. If you already had savings income that year, check to see if you exceed €6,000.
Practical example: 12-month deposit at 2.56%
You have €10,000 in a Klarna Bank (Raisin) deposit at 2.56% APR:
- Gross interest at maturity: €256
- Automatic withholding (19%): €48.64
- Net interest: €207.36
In this case, you’re taxed at 19%, and this is already handled through the withholding. You don’t have to pay anything extra on your income tax return.
Deposits in European banks (Raisin): How are they taxed?
Deposits in European banks opened through platforms like Raisin are taxed exactly the same way: they are considered investment income. The difference is that the foreign bank does not withhold Spanish tax.
This means you receive the full interest amount and must report it on your tax return, paying the corresponding tax. There is no withholding tax—it is not a tax advantage, just a change in the timing of payment.
If the bank in the country of origin withholds tax (for example, Sweden), you can claim a deduction under a double taxation treaty, typically limited to 15%.
Interest-bearing accounts from European neobanks (Revolut, Trade Republic, Bunq)
Same treatment: income from movable capital. Revolut and Trade Republic are under European supervision and in some cases apply automatic withholding; in others, they do not. Review the annual statement they send before filing your tax return.
Trade Republic, for example, issues an annual tax certificate with a breakdown of interest and withholdings that you can use directly in your tax return.
What about money market funds?
Money market funds (such as MyInvestor Fondo Naranja or similar) are taxed differently: they do not generate investment income but rather capital gains, but only when you redeem (sell) shares. If you do not sell, you do not pay taxes even if the fund has generated returns. This makes them more tax-efficient than a deposit if you do not need the money.
Are there any exemptions or deductions?
There is no specific exemption for savings interest in Spain (it was eliminated in 2013). The only relevant tax benefits for savings are:
- Pension plans: They are generally tax-deductible, but are taxed as earned income when withdrawn.
- Home savings accounts: these are no longer available for new contracts.
- Transfers between funds: not taxed until final redemption.
Quick summary
| Product | Type of income | Automatic withholding | Minimum investment |
|---|---|---|---|
| Term deposit (Spanish bank) | Investment income | Yes, 19% | 19% |
| Interest-bearing account (Spanish bank) | Investment income | Yes, 19% | 19% |
| European bank deposit (Raisin) | Investment income | No (or partial) | 19% |
| European neobank (TR, Revolut) | Equity | Variable | 19% |
| Money market fund | Capital gain | Only upon redemption | 19% |
| Treasury bills | Equity | Yes, 19% | 19% |
To optimize the tax treatment of your savings, compare products using real data on the APYData comparison tool—filter by security, liquidity, and currency to find the one that best suits your situation.
This article is for informational purposes only. For specific questions about your tax return, consult a tax advisor or the Tax Agency’s website.