The 2026 thresholds for a British mover to Spain, Portugal or Gibraltar
Every income test, tax band, and election deadline a UK adult needs to plan a 2026 move to Iberia. Each row links to a primary source. We update this page in place — bookmark it rather than the PDF.
Last verified 25 May 2026. We re-verify against each primary source quarterly and after any Spanish, Portuguese or Gibraltarian budget event. If you spot a figure that no longer matches the linked source, email hello@warmercoast.com — we'll fix it within 48 hours and credit you.
UK income tax — the side you are leaving
These are the figures that determine your UK tax position in the year you split residency. Frozen until April 2028; the personal allowance has not risen since 2021/22.
| Threshold | 2026 value | Detail & what it triggers |
|---|---|---|
| Personal Allowance | £12,570 | Tax-free band for non-Scottish UK taxpayers. Tapered above £100,000 (lose £1 of allowance per £2 of income) — zero by £125,140. |
| Basic rate (20%) | £12,571 – £50,270 | Basic rate limit frozen at £37,700 through 2027/28 per the November 2022 Autumn Statement. |
| Higher rate (40%) | £50,271 – £125,140 | Higher-rate threshold also frozen. Watch the £100k–£125,140 zone — effective marginal rate is 60% there due to allowance taper. |
| Additional rate (45%) | £125,141 + | No personal allowance above this point. If you are moving partway through a tax year, split-year treatment can radically change what falls in the UK bucket. |
Spain — Beckham Law, NLV, DNV, Modelo 720
IPREM and SMI are the two reference indices Spain uses to set most income thresholds. IPREM is unchanged from 2025 (€600/mo). SMI has been confirmed for 2026 — the DNV figure tracks 200% of SMI.
| Threshold | 2026 value | Detail & what it triggers |
|---|---|---|
| Beckham Law — flat-rate cap | €600,000 / yr at 24% | Spanish-source employment income up to €600,000 taxed at a flat 24%; excess at 47%. Foreign investment income largely exempt during the regime. |
| Beckham Law — election deadline | 6 months | Modelo 149 must be filed within 6 months of registering with Spanish Social Security. There is no extension mechanism. Miss it and Beckham is forfeit for the entire stay. |
| Beckham Law — duration | 6 tax years | Year of arrival plus five subsequent years. After that you transition to standard Spanish progressive tax (up to ~47%). |
| IPREM 2026 | €600 / mo · €7,200 / yr | Indicador Público de Renta de Efectos Múltiples. The reference for the NLV income test; unchanged from 2025. |
| Non-lucrative visa (NLV) minimum income | €28,800 / yr (400% IPREM) | €2,400 / mo for the main applicant, +€7,200 / yr (100% IPREM) per dependant. Net income, evidenced by bank statements and pension/dividend documentation. Employment, freelance and remote-work income do not count. |
| Digital nomad visa (DNV) minimum income | €2,849 / mo (200% SMI) | +75% of SMI for the first dependant, +25% for each additional. Tied to the Spanish minimum wage — recalibrates whenever the SMI moves. Verify against the published SMI for the year you apply. |
| Modelo 720 — foreign asset declaration | €50,000 per category | Three independent categories — bank accounts, securities/funds, real estate. Filing window 1 Jan – 31 March. Refile only if a category rises by >€20,000 since last declaration, or you dispose of / acquire reportable assets. |
Portugal — D7, IFICI (NHR 2.0)
Portugal’s D7 minimum income tracks the national minimum wage, which rose to €920/mo for 2026. The NHR scheme closed to new entrants end-2024; IFICI is its narrower successor — fewer people qualify, but the 20% flat rate is identical.
| Threshold | 2026 value | Detail & what it triggers |
|---|---|---|
| D7 visa minimum passive income | €920 / mo · €11,040 / yr | +50% for a spouse, +30% per dependent child. Acceptable sources: pension, rental, dividends, intellectual property, financial holdings. Active employment income does not count — that is the D8 / digital-nomad route. |
| IFICI — flat tax rate on qualifying income | 20% | Net employment (Cat A) or self-employment (Cat B) income earned in a qualifying activity. Most foreign-source income exempt during the regime. |
| IFICI — duration | 10 years | Identical window to the old NHR. Cannot be extended. |
| IFICI — eligibility window | Not Portuguese tax-resident in prior 5 years | You must actively work in an approved activity (higher-ed teaching and scientific research, certified tech startups, highly qualified roles in companies exporting >50% of revenue, designated priority sectors) every year to keep the benefit. |
Gibraltar — Category 2
Gibraltar uses an annual assessment year running 1 July → 30 June. Figures below are the 2025/26 published Category 2 position from HM Government of Gibraltar.
| Threshold | 2026 value | Detail & what it triggers |
|---|---|---|
| Category 2 — minimum annual tax | £37,000 | £3,083.33 per complete month (or part month) — pro-rated if you take Cat 2 status partway through an assessment year. |
| Category 2 — maximum annual tax | £42,380 | The cap is enforced via the assessable-income limit below. Once your tax bill hits £42,380, no further income tax is charged in that year. |
| Category 2 — assessable income limit | £118,000 | Worldwide taxable income above £118,000 is disregarded for Cat 2 purposes. This is why the regime is built for high earners — past £118k, the effective rate falls fast. |
| Category 2 — net worth requirement | £2,000,000 | Estimated total net worth threshold to qualify. Application fee £1,168 (non-refundable); refundable deposit of £42,380 returned on relinquishing status. |
Need the worked-example version of this?
The playbooks turn every threshold above into a step-by-step plan with your numbers — what you actually pay, when to elect, what to file, in what order.
Where to go from here
The thresholds page is a reference. These are the deep dives and comparisons that explain how to use them.