| Taxable Income Euro |
Tax Rate |
| Up to 12,450 | 19% |
| 12,450 to 20,200 | 24% |
| 20,200 to 35,200 | 30% |
| 35,200 to 60,000 | 37% |
| Over 60,000 | 45% |
| Taxable Income Euro |
Tax Rate |
| Up to 12,450 | 20% |
| 12,450 to 20,200 | 25% |
| 20,200 to 35,200 | 31% |
| 35,200 to 60,000 | 39% |
| Over 60,000 | 47% |
| Taxable Income Euro |
Tax Rate |
| Up to 6,000 | 19% |
| 6,000 to 50,000 | 21% |
| Over 50,000 | 23% |
| Taxable Income Euro |
Tax Rate |
| Flat rate | 19% |
Types of Limited Companies in Spain
SA - Public Limited Company
Minimum 25% Paid up Capital
Minimum 60,121 Euros Authorised Capital
SL - Private Limited Company
Minimum Share Capital 3,006 Euros
For 2016 25%
For 2015 28%
For 2014 30%
Spain Income Tax Rate for Individual Tax Payers
Lowest Individual Tax Rate is 23.95% and Highest Rate is 51.50%
| Taxable Income Euro |
State Tax |
Regional Tax |
Total Tax |
| 0 - 17,707 | 12.75% | 11.20% | 23.95% |
| 17,708 to 33,007 | 16.00% | 13.30% | 29.30% |
| 33,008 to 53,407 | 21.50% | 17.90% | 39.40% |
| 53,408 to 120,000 | 25.50% | 21.00% | 46.50% |
| 120,001 to 175,000 | 27.50% | 21.00% | 48.50% |
| 175,001 to 3,00,000 | 29.50% | 21.00% | 50.50% |
| Over 300,000 | 30.50% | 21.00% | 51.50% |
Note: Regional tax rates vary between the different regions of Spain (Comunidades Autonomas). The above rates are valid for Madrid.
In regions such as Catalunya and Andalucia the rates for the top tax bands are higher, rising to 56% for the very top band. The following article summarises the tax rates in each region.
The full rate of company tax in Spain is 30%.
For small and medium sized companies, there is a reduced rate:
Small companies: 20% for profits up to 300,000 Euros, 25% for profits above this.
Medium-sized companies: 25% for profits up to 300,000 Euros, 30% for profits above this.
A company is defined as small if the turnover in the previous year was less than 5 million Euros and the company has between 1 and 24 employees.
A company is defined as medium-sized if the turnover in the
previous year was less than 10 million Euros.
Payment of Company Tax
The company tax return must be filed within 6 months and 25 days after end of accounting period.
Payment by installments of company tax is in April, October and December.
As a general rule, each installment is 18% of the previous year's company tax liability.
A separate method of calculation applies to large companies whose turnover in the previous year exceeds a set limit.
Capital Gains Tax in Spain
First 6,000 Euros: 21%
6,000 - 24,000 Euros: 25%
24,000 + Euros: 27%
A flat rate of 21% applies to non residents.
Income Tax Declaration threshold
If either of the limits below are exceeded, the taxpayer must file an annual tax return.
- Income from employment: 22,000 Euros.
- Capital gains and savings income: 1,600 Euros.
- Rental income: 1,000 Euros.
VAT (IVA- Impuesto sobre el Valor Anadido)
Standard rate (Tipo General)
21%
Reduced rate (Tipo Reducido) 10%
Super-reduced rate (Tipo Superreducido) 4%
- Payment is quarterly, in general within 20 days of the month
end;
- A monthly regime applies for businesses with turnover above 6
million Euros.
There is a pro-rated partially exempt calculation for businesses
making both taxable and exempt supplies.
Exemptions
Public services
Financial transactions
Public postal services
Insurance Transactions
Medical and health service
Conveyance of land designated as not for housing
Welfare
Resale of property
Education
Private lettings
Sport
Exemptions for internal transactions
Certain cultural activities
Exemptions for exports
Deductibility of VAT
VAT incurred in relation to taxable goods and services is
recoverable.
Non-recoverable VAT
In the case where a motor vehicle has mixed business and
personal use, 50% of the motor vehicle cost and related
expenditure is not recoverable for Spanish VAT purposes.
VAT on traveling expenses which are not deductible for
corporation or income tax purposes is not recoverable.
Special Systems
Agriculture, stock breeding and fishing
Second-hand goods, art objects and antiques
Travel agents
Retail trade - recargo de equivalencia - under this system, net
VAT is paid to suppliers, rather than the Spanish Tax Office.
Spain Dates of filing Returns / Reporting and Payment
The due date for filing the tax return and making a payment is
normally from 1 May to 30 June of each year for the income
obtained in the previous year. Specific filing deadlines apply
to non-residents. If the tax return is not filed on time,
penalties will be imposed. These penalties will vary depending
on whether the tax return is filed after the deadline on a
voluntary basis or whether it is as a result of a tax
inspection.
31 December. Unless the taxpayer dies on a day other than 31
December.