Income Taxes in Spain
Individuals and corporate must in Spain pay taxes on all their worldwide income.
• Individuals shall be deemed to have their principal residence in Spain if they spend in Spain 183 days per year or their economic interest’s lies in Spain.
• Corporations shall be deemed to be a resident of Spain, if it was incorporated in accordance with Spanish law, it has its registered office in Spain.
Non-residents are subject to taxation only on income earner or paid on Spanish territory. The Spanish taxation system classifies tax payments as taxes, levies and contributions. The fiscal year is the calendar year. In Spain is the tax of total taxes in 36.4 % of GDP and total taxes are in most countries in EU higher.
Taxation of wage income tax in Spain
(Average personal income tax and social security contribution rates on gross labour income)
Tax | % AW | |||
66 % | 100 % | 133 % | 166 % | |
Central income tax | 6,4% | 9,2% | 11,2% | 12,4% |
Sub-central income tax | 3,4% | 4,9% | 6,0% | 6,6% |
Total income tax | 9,8% | 14,1% | 17,1% | 19,0% |
Employee social and health insurance | 6,4% | 6,4% | 6,4% | 6,3% |
´All-in´ | 16,1% | 20,4% | 23,5% | 25,3% |
Employer social and health insurance | 30,2% | 30,2% | 30,2% | 29,9% |
Taxation total | 35,6% | 38,9% | 41,2% | 42,5% |
