Spain Tax 2023
Tax in Spain
Last partial update, October 2023
Individual Income Tax: Spain's individual income tax rates for 2023 are progressive, from 9.5% to 24.5%.
Dividend and interest income are taxed at 19% for income up to EUR 6,000.
At 21% for income between EUR 6,001-EUR 50,000, 23% for income of EUR 50,000- EUR 200,000 and 27% for income of EUR 200,000-300,000 and 28% for income exceeding EUR 300,000.
Spain personal annual tax rates 2023 (EUR)
| Income (EUR) | % |
|---|---|
| 1-12,450 | 9.5 |
| 12,451-20,200 | 12 |
| 20,201-35,200 | 15 |
| 35,201-60,000 | 18.5 |
| 60,001-300,000 | 22.5 |
| Over 300,000 | 24.5 |
Notes: The tax rates do not include Spain's local regional tax.
In 2023 in certain autonomous regions in Spain the top marginal income tax rate including regional tax is up to 45%, as in Madrid.
In 2022-2023 there is an additional solidarity wealth tax of 1.7%-3.5% on individual net wealth exceeding EUR 3 million .
Corporate Tax: Spain's corporate tax rate for 2023 is 25%.
Banks: pay 30% corporate tax.
Capital Gains: Capital gains of companies are added to the regular income and are taxable at 25% rate.
Under certain terms there is a participation exemption for sale of shares of a subsidiary.
Individuals: Pay capital gains tax varying from 19% to 28% .
Residence
A foreign company is resident if incorporated in Spain or have its actual management in Spain.An individual is resident when staying in Spain for more than 183 days in a tax year or when the center of business life is in Spain.
Spain Tax Deductions
- Losses are carried forward with no limit, subject to terms.
There is no carry back of losses. - Depreciation is deducted using the straight line method or the declining balance method which is allowed for new tangible assets having estimated life of more than three years.
- Some rates in the straight line method are:
- Computers- 25%
- Machinery- 12%
- Vehicles-16%
- Buildings-3%
- There is company consolidation for tax purpose, subject to certain terms.
- Thin capitalisation rules relate to interest expenses.
Interest is deductible up to 30% of the income up to a ceiling of EUR 1 million per year. - Bad debts are tax deductible subject to terms.
Spain Personal Credits and Deductions
For Spanish residents there is a basic tax credit of EUR 5,550 per year.The sum is increased for people aged 65 or more with additional deduction for other dependent family members and disabled people.
Deductions are also permitted for payments to Spanish pension plans, up to a limit, and for alimony payments.
A part of the total purchase price of the main residence is tax deductible, up to a limit.
10% of donations are deductible, subject to a ceiling.
Deduction of Tax at Source
In Spain tax is deducted at source from the following payments to nonresident companies:Dividend- 19%.
Interest- 0%/19%.
Royalties- 19%/24%.
Branch remittance to head office- 19%.
Technical Fees -19%/24%
Note: when relevant the tax withholding rates are subject to EC directive or double tax treaties.
Social Security
The contributions by the employer and the employee are subject to a ceiling of EUR 4,4495.50 per month ..Employer: 30.4% of the gross salary.
Employee: 6.45%% of the gross salary.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
Please read our terms of service before entering this site.