In Spain, as most European countries, tax treatment depends on whether you are resident or not and the differences can be quite large. Generally, taxes in Spain are lower than other European countries.

For residents there is zero income tax up to 9000 euros p.a. After that there is a sliding scale up to a maximum of 45%. If you retired to Spain, you would pay income tax on what you bring into Spain over 9000 euros p.a. Capital gains tax for residents is a flat rate 15% but for non-residents it is a flat rate 35%. Non-residents renting their properties in Spain pay a flat rate 25% on rental income.

Local rates are generally cheaper than the UK, an apartment in Barcelona in a good area may be as little as 500 euros per year. There is also a small annual wealth tax in Spain, paid by both residents and non-residents, which is .02% of the official value of wealth held in Spain (for most non-residents, this would only include their property). Residents of Spain have a personal exemption which non-residents do not. It is important to get good financial advice prior to moving to Spain