# Taxation in Spain

Part of a series on :
Taxation :
An aspect of fiscal policy :
Policies
Government revenue
Property tax equalization
Tax revenue
Non-tax revenue
Tax law
Tax bracket
Flat tax
Tax threshold
Exemption
Credit
Deduction
Tax shift
Tax cut
Tax holiday
Tax amnesty
Tax advantage
Tax incentive
Tax reform
Tax harmonization
Tax competition
Tax withholding
Double taxation
Representation
Unions
Medical savings account :
Economics
General Theory
Price effect
Excess burden
Tax incidence
Laffer curve
Optimal tax
Theories
Optimal capital income taxation
Distribution of Tax
Tax rate
Flat
Progressive
Regressive
Proportional :
Collection
Revenue service
Revenue stamp
Tax assessment
Taxable income
Tax lien
Tax refund
Tax shield
Tax residence
Tax preparation
Tax investigation
Tax shelter
Tax collector
Private tax collection
Tax farming :
Noncompliance
General
Tax avoidance
Repatriation tax avoidance
Tax evasion
Tax resistance
Tax shelter
Debtors' prison
Smuggling
Black market
Unreported employment
Corporate
Tax inversion
Transfer mispricing
Base erosion and profit shifting (BEPS)
Double Irish
Dutch Sandwich
Single Malt
CAIA
Locations
Tax havens
Corporate havens
Offshore financial centres (OFCs)
Offshore magic circle
Conduit and sink OFCs
Financial centres
Financial Secrecy Index
Major examples
Ireland as a tax haven
Ireland v. Commission
Leprechaun economics
Liechtenstein tax affair
Luxembourg Leaks
Offshore Leaks
Paradise Papers
Panama Papers
Swiss Leaks
United States as a tax haven
Panama as a tax haven :
Types
Direct
Indirect
Per unit
Ad valorem
Aviation
Airport improvement
Landing
Solidarity
Capital gains
Expatriation
Consumption
Departure
Hotel
Sales
Stamp
Television
Tourist
Value-added
Dividend
Environmental tax
Carbon
Eco-tariff
Landfill
Natural resources consumption
Severance
Steering
Stumpage
Excise
Alcohol
Cigarette
Fat
Meat
Sin
Sugary drink
Tobacco
General
Georgist
Gift
Gross receipts
Hypothecated
Income
Inheritance (estate)
Land value
Luxury
Payroll
Pigouvian
Property
Resource rent
Single
Surtax
Turnover
Use
User charge/fee
Congestion
Fuel
Road/GNSS
Toll
Vehicle miles traveled
Corporate profit
Excess profits
Windfall
Negative (income)
Wealth :
International
Financial transaction tax
ATTAC
Currency transaction tax
European Union Common Consolidated Corporate Tax Base (CCCTB)
Global minimum corporate tax rate
Robin Hood tax
Tobin tax
Spahn tax
Tax equalization
Tax treaty
Exchange of Information
Permanent establishment
Transfer pricing
European Union FTT
Foreign revenue rule :
Trade
Custom
Duty
Tariff
Import
Export
Tariff war
Free trade
Free-trade zone
Trade agreement
ATA Carnet :
Research
Academic
Mihir A. Desai
Dhammika Dharmapala
James R. Hines Jr.
Ronen Palan
Joel Slemrod
Gabriel Zucman
Advocacy groups
Institute on Taxation and Economic Policy (ITEP)
Oxfam (UK)
Tax Foundation (US)
Tax Justice Network (TJN)
Tax Policy Center (US) :
Religious
Church tax
Eight per thousand
Teind
Tithe
Fiscus Judaicus
Leibzoll
Temple tax
Tolerance tax
Jizya
Kharaj
Khums
Nisab
Zakat :
By country
All Countries
List of countries by tax rates
Tax revenue to GDP ratio
Tax rates in Europe
Individual Countries
Albania
Algeria
Argentina
Armenia
Australia
Azerbaijan
Bangladesh
Bhutan
Brazil
Bulgaria
BVI
Canada
China
Colombia
Croatia
Denmark
Finland
France
Germany
Greece
Hong Kong
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Japan
Kazakhstan
Lithuania
Malta
Morocco
Namibia
Netherlands
New Zealand
Norway
Pakistan
Palestine
Peru
Philippines
Poland
Portugal
Russia
South Africa
Sri Lanka
Sweden
Switzerland
Taiwan
Tanzania
United Arab Emirates
United Kingdom
United States
Uruguay :
Business portal
Money portal :
vte :
NOTE: Historical information. In 2025 the situation is very different.
Taxes in Spain are levied by national (central), regional and local governments. Tax revenue in Spain stood at 36.3% of GDP in 2013. A wide range of taxes are levied on different sources, the most important ones being income tax, social security contributions, corporate tax, value added tax; some of them are applied at national level and others at national and regional levels. Most national and regional taxes are collected by the Agencia Estatal de Administración Tributaria which is the bureau responsible for collecting taxes at the national level. Other minor taxes like property transfer tax (regional), real estate property tax (local), road tax (local) are collected directly by regional or local administrations. Four historical territories or foral provinces (Araba/Álava, Bizkaia, Gipuzkoa and Navarre) collect all national and regional taxes themselves and subsequently transfer the portion due to the central Government after two negotiations called Concierto (in which the first three territories, that conform the Basque Autonomous Community, agree their defense jointly) and the Convenio (in which the territory and Community of Navarre defense itself alone). The tax year in Spain follows the calendar year. The tax collection method depends on the tax; some of them are collected by self-assessment, but others (i.e. income tax) follow a system of pay-as-you-earn tax with monthly withholdings that follow a self-assessment at the end of the term.

## Income tax

Personal income tax in Spain, known as IRPF, was introduced in 1900. It represents nearly 38% of government revenues. Since 2007, the responsibility for regulating and collecting personal income tax has been decentralized, the autonomous regions being responsible for collecting 50% of tax revenue (although all the returns and amounts are actually received by the central tax authority on their behalf). A single national rate applies per taxation band for the whole national portion of the income tax. Tax rates on the regional portion vary between regions, Madrid having the lowest and Catalonia the highest. Tax is withheld by the employer monthly on behalf of the tax authority. Tax returns are submitted between April and June of the following year and refunds are normally paid between May and July, however, the Government has until the end of the year to liquidate before the taxpayer has a right to interest for the outstanding money: any payments not paid by this date are paid with interest from the beginning of the next year.
As in other jurisdictions income tax is payable by both residents and non-residents with different rates applying. Individual residents are subject to personal income tax (IRPF) based on their income from around the globe. Non-residents are subject to IRPF only on their Spanish-sourced income. Residence status must be established when filing a Spanish tax return and has consequences for the amount of tax due. The rules are complex. Spain considers any alien to be resident if they were living in Spain for more than 183 days in the tax year. Sporadic periods of time outside of Spain are not counted towards establishing oneself as a non-resident for tax purposes. An alien is also considered a resident if s/he has a spouse or underage child who are residents, as well as any alien who has their main economic center in Spain. When there is a residence conflict double taxation agreement must be checked.

### Allowances and deductions

Some amounts are subtracted from the income tax base before the rate is applied. Allowances are adjusted annually by law. Allowances vary depending on whether the income is from labor, the taxpayer is single or lives with elderly relatives or dependants, challenge conditions of the taxpayer or those they live with, the autonomous community where they live, and other issues. Also, the amount may be reduced by declaring income with your spouse if you are married and some expenditures (like contributions to unions, personal pension funds, etc.). The figures given below are valid for the year 2019.
The personal tax allowance differs depending on age. For the year 2019 under 65s, the personal tax allowance is €5,550. Individuals aged between 65 and 75 are allowed a €6,700 personal allowance. Anyone above 75 receives the highest personal allowance at €8,100.
There is an elderly relative allowance which lowers the taxable income and applies to those taxpayers who live with relatives older than 65 (or with relatives of any age with a disability graded at 33% or more) who do not have income themselves. This allowance is €1,150 if the relative is aged up to 75 and €2,550 above the age of 75.
There is also a dependants allowance which also lowers the taxable income base. It applies to taxpayers who live with dependants younger than 25 (or with dependants of any age with a disability graded at 33% or more). For the first dependent, the allowance is €2,400. The allowance for the second dependent is €2,700, the allowance for the third dependent is €4,000, and each further child has an allowance of €4,400. In addition to dependant allowances, there is a maternity allowance which is €1,200 for each child under the age of 3.
There are also other reductions and deductions applicable for expenditures and housing (home rental and purchasing). The exact amount of the deduction depends on the amount of the expenditure though it is topped.
Some autonomous communities (like Cantabria, Castilla-La Mancha and Madrid) have different allowances for their own share of the income tax and also establish their own deductions.
Retired expatriates living in Spain who receive an income within Spain for tax purposes and a pension from their native country will need to calculate their income tax and allowances by first identifying their marginal rate of income tax. This can be quite complex given the differing tax rates and thresholds within specific tax regions and variances in allowances.

### Current rates

Once the gross income has been reduced by the legal allowances, reductions, and deductions, the taxpayer has to apply the rate to find out the actual tax.
As of January 1, 2015, the income tax has been reformed and simplified. It's important to note that these rates vary between regions. The rates shown below apply to the Community of Madrid. The communities of Andalusia and Catalonia apply a higher regional income tax than Madrid. The top rate of income tax in Andalusia and Catalonia is 49%.
| From (euros) | Up to (euros) | Tax Rate | Step * Tax Rate |
| €0 | €12,450 | 19% | €2,365.5 |
| €12,450 | €20,200 | 24% | €1,860 |
| €20,200 | €35,200 | 30% | €4,500 |
| €35,200 | €60,000 | 37% | €9,176 |
| €60,000 and above | | 45% | |
It's also noteworthy that these rates apply to the general income. Some kinds of income, like income bound to saving accounts, have different rates.

## Tax on investment income

* Interest, coupon, bonds, insurance, and dividends are generally withheld at a 21% rate, but are added to the savings base and taxed at savings scale. The first €1,500 of dividends are exempt (since 2015 this exemption does not apply).
* Long term (+1 year) capital gains on: stocks, investment funds, and real estate, are also taxed at savings scale.
* Short-term (-1 year) capital gains are taxed at a general scale (24,75%-52%). Since 2015 short and long-term capital gains are taxed at a savings scale.
Savings scale 2014
Savings scale 2015/2016

## Value added tax

VAT (IVA in Spanish: impuesto sobre el valor añadido or impuesto sobre el valor agregado) is due on any supply of goods or services sold in Spain. The current normal rate is 21% which applies to all goods which do not qualify for a reduced rate or are exempt. There are two lower rates of 10% and 4%. The 10% rate is payable on most drinks, hotel services, and cultural events. The 4% rate is payable on food, books and medicines. An EU directive means that all countries of the European Union have VAT. All exempt goods and services are listed below.
* Education provided by the state
* Tutoring
* Sporting services
* Cultural services
* Insurance
* Postal stamps
* Artists, writers, and composers
As of January 1, 2013, new properties are taxed at a reduced rate of 10%. Second-hand properties are not subject to VAT, but a transfer tax, known as Impuestos Sobre Transmisiones Patrimoniales or ITP. The tax is levied by the autonomous regional governments and therefore varies by region. The rate varies from 6% to 8%.

## Corporate tax

As of January 1, 2015, the corporate tax rate was 28% (further reduced to 25% in 2016). There is a lower tax rate for newly formed companies. The rate, which was introduced in 2015, is set at 15% for the first 2 years in which the company obtains taxable profit.
In the Canary Islands, corporate income tax is reduced to 4% for corporate entities with registered address within the Canarian archipelago (and with at least one member of the company’s administration residing permanently in the Canaries), as part of the Canary Islands Special Zone (ZEC) within the framework of the Economic and Fiscal Regime of the Canary Islands (REF) and as authorised by the European Commission in 2000.

## Spanish property tax for non-residents

Property owners are considered a non-resident in Spain if they live in the country for less than 183 days in a single year. Non-resident property owners are required to make a tax declaration for each quarter in which they have earned rental income. “Impuesto Sobre la Renta de no Residentes” is a tax on rental income for non-resident landlords in Spain. For the tax year 2020, the tax rate is 19% for residents of the EU, Norway and Iceland. Meanwhile, the tax rate is 24% for citizens of other countries. If the property is not rented out, non-residents must submit a deemed tax return.

### Quarterly tax filing deadlines

Non-resident owners of Spanish property are required to file four different quarterly tax returns throughout the tax year. These tax returns are due in January, April, July and October.

### Plusvalia tax

Plusvalia tax in Spain is a local tax charged by the local Town Hall on properties, at the moment they are sold. It is calculated on the value of the property and depends on the number of years that have passed since the property was previously sold.

### Deemed tax returns for a property in Spain

Deemed tax is a tax paid by non-residents in Spain who own properties located in the country that were not rented. Where a property has only been let for part of a year, Spanish Deemed tax is applicable only for the period in which it was vacant or occupied by the owner for personal use. Landlords are required to file a non-resident income tax return (Form 210) to report the “deemed income”. The deadline for non-residents to file a deemed tax return is 31 December of the following tax year.

## Social Security contributions

Most sorts of employment income earned are subject to social security contributions, by both the employee and the employer. The standard rate for the employee is 6.35%. The employer pays what corresponds to 29.90% of the employee's salary. The current maximum monthly Social Security base is EUR3,596.98 (2015). Any income exceeding that maximum base is not subject to both employee and employer contributions.