{"id":3525,"date":"2020-07-15T15:00:49","date_gmt":"2020-07-15T12:00:49","guid":{"rendered":"https:\/\/alegria-premium.com\/?p=3525"},"modified":"2022-01-18T20:01:31","modified_gmt":"2022-01-18T17:01:31","slug":"spain-income-tax","status":"publish","type":"post","link":"https:\/\/alegria-premium.com\/en\/articles\/bussines\/spain-income-tax\/","title":{"rendered":"Income tax in Spain"},"content":{"rendered":"

Income tax in Spain (Impuesto sobre la Renta de las Personas F\u00edsicas, IRPF) is paid by individuals who are resident in Spain on various types of income from employment and business activities. In other words, taxpayers include employees, entrepreneurs, founders and co-founders of companies, owners of residential and commercial property that is let out, and many other categories of people.<\/p>\n

What income tax is paid in Spain: rates<\/h2>\n

Income tax in Spain is charged on a progressive scale: the higher your annual income, the more tax you will have to pay. Part of the tax goes to the central government budget and part to the budget of the autonomous community. Tax rates can differ significantly from one autonomous community to another, and there is a whole system of national and regional tax allowances and deductions.<\/p>\n

The 2019 tax campaign in Spain has just ended. Income tax in Spain in 2020 on income earned in 2019 was charged at the following minimum and maximum rates:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Region<\/b><\/td>\nMinimum rate<\/b><\/td>\nMaximum rate<\/b><\/td>\n<\/tr>\n
Extremadura<\/td>\n19%<\/td>\n48%<\/td>\n<\/tr>\n
Madrid<\/td>\n18.5%<\/td>\n43%<\/td>\n<\/tr>\n
Castilla-La Mancha<\/td>\n19%<\/td>\n45%<\/td>\n<\/tr>\n
La Rioja<\/td>\n19%<\/td>\n48%<\/td>\n<\/tr>\n
Arag\u00f3n<\/td>\n19.5%<\/td>\n47.5%<\/td>\n<\/tr>\n
Andalusia<\/td>\n19.5%<\/td>\n48%<\/td>\n<\/tr>\n
Castilla y Le\u00f3n<\/td>\n19%<\/td>\n44%<\/td>\n<\/tr>\n
Cantabria<\/td>\n19.5%<\/td>\n48%<\/td>\n<\/tr>\n
Canary Islands<\/td>\n19%<\/td>\n46.5%<\/td>\n<\/tr>\n
Galicia<\/td>\n19%<\/td>\n45%<\/td>\n<\/tr>\n
Valencian Community<\/td>\n19.5%<\/td>\n48%<\/td>\n<\/tr>\n
Balearic Islands<\/td>\n19%<\/td>\n47.5%<\/td>\n<\/tr>\n
Asturias<\/td>\n19.5%<\/td>\n48%<\/td>\n<\/tr>\n
Catalonia<\/td>\n21.5%<\/td>\n48%<\/td>\n<\/tr>\n
Murcia<\/td>\n19.5%<\/td>\n46%<\/td>\n<\/tr>\n
Ceuta<\/td>\n19%<\/td>\n45%<\/td>\n<\/tr>\n
Melilla<\/td>\n19%<\/td>\n45%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Using the Valencian Community as an example, let us show how the progressive income tax scale works in Spain:<\/p>\n

National portion of income tax in Spain<\/h3>\n\n\n\n\n\n\n\n\n
Taxable base from:<\/b><\/td>\nTaxable base up to:<\/b><\/td>\nRate<\/b><\/td>\n<\/tr>\n
\u20ac0.00<\/td>\n\u20ac12,450.00<\/td>\n9.50%<\/td>\n<\/tr>\n
\u20ac12,450.00<\/td>\n\u20ac20,200.00<\/td>\n12.00%<\/td>\n<\/tr>\n
\u20ac20,200.00<\/td>\n\u20ac35,200.00<\/td>\n15.00%<\/td>\n<\/tr>\n
\u20ac35,200.00<\/td>\n\u20ac60,000.00<\/td>\n18.50%<\/td>\n<\/tr>\n
\u20ac60,000.00<\/td>\nand above<\/td>\n22.50%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Valencian Community portion of income tax in Spain<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n
Taxable base from:<\/b><\/td>\nTaxable base up to:<\/b><\/td>\nRate<\/b><\/td>\n<\/tr>\n
\u20ac0.00<\/td>\n\u20ac12,450.00<\/td>\n10.00%<\/td>\n<\/tr>\n
\u20ac12,450.00<\/td>\n\u20ac17,000.00<\/td>\n11.00%<\/td>\n<\/tr>\n
\u20ac17,000.00<\/td>\n\u20ac30,000.00<\/td>\n13.90%<\/td>\n<\/tr>\n
\u20ac30,000.00<\/td>\n\u20ac50,000.00<\/td>\n18.00%<\/td>\n<\/tr>\n
\u20ac50,000.00<\/td>\n\u20ac65,000.00<\/td>\n23.50%<\/td>\n<\/tr>\n
\u20ac65,000.00<\/td>\n\u20ac80,000.00<\/td>\n24.50%<\/td>\n<\/tr>\n
\u20ac80,000.00<\/td>\n\u20ac120,000.00<\/td>\n25.00%<\/td>\n<\/tr>\n
\u20ac120,000.00<\/td>\nand above<\/td>\n25.50%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Thus the top income tax rate in the Valencian Community is 48%. In Madrid the top rate is slightly lower, only 43.50%, in Catalonia it is 48%, and in Andalusia 48%.<\/p>\n

\"Income<\/p>\n

Income tax in Spain on savings income is calculated at different rates. Here, too, the tax is split into a national and a regional portion. On average, the combined tax rate will be:<\/p>\n\n\n\n\n\n\n
Taxable base (up to, \u20ac)<\/b><\/td>\nFixed amount, \u20ac<\/b><\/td>\nRemaining taxable base (up to, \u20ac)<\/b><\/td>\nTax rate, % (national portion + regional portion)<\/b><\/td>\n<\/tr>\n
0<\/td>\n0<\/td>\n6,000<\/td>\n19.00<\/td>\n<\/tr>\n
6,000.00<\/td>\n1,140.00<\/td>\n44,000<\/td>\n21.00<\/td>\n<\/tr>\n
50,000.00<\/td>\n10,380.00<\/td>\nand above<\/td>\n23.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Income tax in Spain: the tax return<\/h2>\n

Not every taxpayer is required to file an income tax return in Spain: it all depends on the amount of income and its sources.<\/p>\n

You do not have to file a return if:<\/p>\n