What is the income tax rate in Spain?

What is the income tax rate in Spain? That is one of the questions posed by many people who come to live in our country or at least intend to acquire a property in Spain.

What you need to know about income tax rate in Spain

It is important to keep in mind that there is a distinction between resident and non-resident. Those residents are those who spend more than 183 days in the fiscal year in Spain or with a main commercial professional base in Spain, paying taxes on their worldwide income.

Those who are not residents only pay taxes on income from Spanish sources, but at a different rate, which can be deductible in their country of origin in case the double non-taxation convention has been signed.

The standard rate with a tax base ranging from 0 to € 12,450 is at 19%. From 12,450 to € 20,200 at 24%; from € 20,200 to € 35,200 is at 30%; from € 35,200 spend € 60,000 to 37% and from € 60,000 to 45%.

A rate of 19% on savings is applied up to € 6,000, of 22% between € 6,000 and € 50,000 and of 23% for amounts exceeding € 50,000.

Deductions for mandatory contributions to Social Security, as well as certain irregular expenses and income are available. There is also relief for different personal and family circumstances, which are mainly granted in the form of deductions from taxable income, but are only available to taxpayers who are residents.

Do not forget the existence of special regimes for expatriates. A person assigned to work and live in Spain can be taxed as a non-resident for a period of six years.

In this case, the individual is taxed at a fixed rate of 24% on the gross amount of the income up to a maximum amount of € 600,000 (the excess is levied on a class of 45%) For those residents in other member states of the EU, or in the countries of the European Economic Area, with which there is an effective exchange of tax information, the rate will be 19%.

Do you have doubts about the Income Tax in Spain? Consult with a professional team to advise you and know everything you need to know.

Recommended Posts

Leave a Comment