Taxation of Individuals in Spain

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. Spain 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.

 

 

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%. 

 

Our team of attorneys in Spain can offer legal assistance to those who want to register for tax purposes in this country. 

 

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.