Personal Income Tax in Spain
In Spain is a progressive personal income tax. Residents are subject to tax on their worldwide income and assets. Resident couples may file their income tax returns jointly or separately. The taxpayer’s income consists of:
• income from employment
• income from capital
• income from business
• capital gains and losses
• imputed income as laid down by law
For married couples married under the community property regime, their incomes, capital gains, and related deductions would be divided equally between them, whether they file jointly or separately. For married couples married under the separate property regime, their incomes, capital gains, and related deductions would be attributed exclusively to each individual earning the income.
Tax due date
In Spain is tax due date 31 of December of each year.
Tax rate
In Spain are two personal income taxes – for country and for autonomous community. The tax rates are progressive.
• The general tax rate in Spain is:
Tax | Tax Base (in EUR) |
15.66 % | up to 17 707 |
18.27 5 % | 17 708 – 33 007 |
21.14 % | 33 008 – 53 407 |
27.13 % | 53 408 and over |
• If the autonomous community has not adopted the abovementioned scale, the following complementary rate will apply:
Tax | Tax Base (in EUR) |
8.34 % | up to 17 707 |
9.73 % | 17 708 – 33 007 |
12.86 % | 33 008 – 53 407 |
15.87 % | 53 408 and over |
Deductions
The Spain law on income tax provides deductions, for instance:
• deduction for investment – generally 10 %, the maximum basis of deduction is 9 015 EUR
• deduction for rent of habitual place of residence – taxpayers with a tax base lower than 24 020 EUR may claim a tax deduction of 10 % of the amounts paid during the homes renting period
• deduction for gifts – 10 % of the sums donated to legally recognized foundations
• deduction for maternity – deduction for women with children younger than 3 years, the deduction my rises up to 1 200 EUR per year per child fewer than 3 years
• deduction for child birth – 2 500 EUR
• …
Exemptions
The Spain law on income tax provides exceptions, for instance:
• dividends perceived up to a maximum amount of 1 500 EUR per year
• earnings for work carried out abroad with an upper limit of 60 100 EUR
• prizes in national lotteries
• unemployment benefits
• child allowances
• pensions
• social security benefits
• …
Bc. Petr Gola
