Spain is the number one emigration destination for Germans: cost of living 22 percent lower, coastal property still affordable, and under the Beckham rule newcomers pay a 24 percent flat tax for six years.
The short answer
Cheaper living, moderately taxed, coastal property with 4 to 5 percent rental yields. Watch the wealth tax in some regions.
milinia’s take
- Apply for the Beckham rule: 24 percent on employment income up to €600,000 for six years, application within six months of registration.
- Wealth tax by region: Madrid and Andalusia waive it, Catalonia and Valencia do not; relevant from €700,000 of wealth.
- Property purchase: 10 to 13 percent closing costs, of which 6 to 10 percent transfer tax by region, plus notary and registry.
- NIE number before anything else: without it no account, no contract, no purchase.
Living and costs
The basket sits around 22 percent below Germany, restaurants and groceries well below, electricity and rents in Madrid, Barcelona and the Balearics not. A one-bedroom flat in central Madrid costs around €1,050 in 2026, in Valencia €800, in Málaga €950. Whoever lives outside the metropolises and coastal hotspots gets by on 60 percent of a German budget.
Taxes
Income tax runs up to 47 percent, in some regions up to 54. Newcomers with an employment contract or as digital nomads can choose the Beckham rule: a 24 percent flat tax on Spanish employment income up to €600,000 for six years, foreign income stays tax-free. Capital gains are taxed at 19 to 30 percent. Spain has a wealth tax from €700,000 that Madrid, Andalusia and Extremadura waive in full, Catalonia and the Balearics do not; since 2023 there is a nationwide solidarity levy on wealth above three million euros. Pensioners tax the German pension in Spain with credit.
Property
Madrid around €5,200 per square metre, Barcelona €4,800, Málaga €3,600, Valencia €2,900, Costa del Sol in good locations €3,500 to €6,000. Rental yields of 4 to 5.5 percent exceed Germany. Closing costs 10 to 13 percent, of which transfer tax 6 to 10 percent by region, notary, registry, gestor. Since 2025 Spain has debated a special levy for buyers from outside the EU; it does not apply to Germans. Non-residents pay 19 percent on rental income without cost deduction, residents with deduction.
Gold, portfolio, bank
Investment gold is VAT-free, dealers in every city. German brokers usually keep serving Spanish residents. A Spanish account needs the NIE and proof of residence or employment; the big banks often charge fees, direct banks do not.
What emigrants underestimate
The bureaucracy: NIE, empadronamiento, residencia and social security are four appointments with waiting times. Healthcare is good but for non-workers only with private insurance or the convenio especial. And tax residence tips at 183 days even if the German flat still stands.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
How high is transfer tax in Spain?
By region 6 to 10 percent for existing property, for new builds 10 percent VAT plus 1.5 percent stamp duty.
Is the German pension taxed in Spain?
Statutory pensions are taxed in Spain under the double taxation treaty, civil service pensions in Germany.
Is there inheritance tax?
Yes, with regional reliefs: Madrid and Andalusia almost tax-free for spouses and children, other regions with allowances of only €16,000.
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