What types of taxes are there in Spain

Taxes in Spain are divided into direct and indirect taxes, each with its main characteristics. They are taxes that are demanded from citizens without there being a consideration and the main source of funding for the State and the Autonomous Communities.

Classes of taxes in Spain

Direct taxes are those that are applied to direct statements about the economic capacity of the taxpayer, such as income or assets. Indirect taxes are those that are applied on indirect manifestations of the economic capacity of the taxpayer, for the use of their wealth.

Within the indirect taxes can be highlighted the Personal Income Tax (IRPF) It is the one that taxes the set of rents that a person can get, such as:

  • Income from work, such as salaries.
  • Income from movable capital, such as interest generated by money in the savings account.
  • Income from real estate capital, such as the rent paid by the tenant of a flat that has been rented.
  • Income from economic activities, such as the benefit obtained from professional activity.
  • Capital gains and losses, such as the profit derived from the sale of an apartment.
  • Corporation Tax, which falls on the benefit obtained by companies.
  • Tax on the income of non-residents. With this tax the income obtained in Spain is taxed by non-residents in our country.
  • Wealth Tax, which is paid for the set of assets or rights that one has, such as housing, bank accounts, jewelry, land, etc.
  • Inheritance and Gift Tax, which is paid when money or other goods are received without consideration.

Among the most important indirect taxes are:

  • Value Added Tax (VAT), is the tax that taxes consumption, deliveries of goods and services provided by professionals and / or entrepreneurs.
  • Tax on property transfers and documented legal acts. Taxes the transmissions of all kinds of goods, some legal acts and specific operations of companies.
  • Special taxes, are those that tax the purchase or consumption of some goods such as tobacco, gasoline, alcohol, etc.
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