Taxation of individuals in Spain
is performed on a progressive base. Resident citizens, as well as non-residents, are taxed in Spain
for their income, following specific regulations. It is important to know that in Spain
the level of taxation
depends on the region in which the individuals perform their taxable activity
is divided into 12 autonomous regions, which are allowed to establish tax regulations
for the taxation of natural persons
. Our team of lawyers in Spain
can offer legal assistance on the overall taxes
that must be paid there.
Taxation system in Spain
The taxation system available in Spain for natural persons is comprised of two main types of taxes:
• the state taxation system;
• the regional taxation system.
Both types of taxes
are imposed to natural persons in accordance with their yearly income
. Below, we present the taxation system
available in Madrid
, the capital city of Spain
• income up to EUR 12,450 is taxed at a rate of 19% (comprised of both national and regional tax);
• income between EUR 12,450 and EUR 20,200 is taxed at a rate of 24%;
• income between EUR 20,200 and EUR 35,200 is taxed at a rate of 30%;
• income between EUR 35,200 and EUR 60,000 is imposed with a tax of 37%;
• income above EUR 60,000 is taxed at a rate of 45%.
Taxation of foreigners in Spain
Foreigners living or working in Spain
are liable to taxation
in certain conditions. For example, all foreigners who have been living in Spain
for more than 183 days will be considered tax residents
in this country.
Foreigners obtaining an income from employment in Spain
will be required to file tax returns
. Those who are self-employed
will also be taxed for their activities, as well as those who obtain profit from rental income
As a general rule, natural persons are taxed in Spain for the following types of taxable activities:
• income deriving from employment in Spain;
• income deriving from business activities;
• income deriving from capital.
Please contact our law firm in Spain
for more information related to the taxation of individuals
. Our lawyers
can offer assistance in complying with the local requirements.