Spanish Tax rates and allowances for 2023

Spanish tax residents are liable to income tax on a worldwide basis.

The National income tax rates (issued by the central Government) are as follows:

Income tax rates
Taxable income bands Tax Rate
Up to €12,450 19%
€12,450 – €20,200 24%
€20,200 – €35,200 30%
€35,200 – €60,000 37%
€60,000 – €300,000 45%

Excess                         47%

Each autonomy has the power to amend the income tax rates (by amending their element of the tax rate). For example, specifically in Andalusia, income bands has been changed for 2023 fiscal year. Therefore, the actual tax rates are as follows:

Accordingly, the full tax rate for residents in Andalusia are (by adding the two amounts given you the total tax rate applicable):

Tax Income Bands Andalusian Rates National Rates Full tax rate
0 – €12,450 9.5% 9.5% 19%
€12,450 – €13,000 9.5% 12% 21,5%
€13,000 – €20,200 12% 12% 24%
€20,200 – €21,100 12% 12% 24%
€21,100 – €35,200 15% 15% 30%
€35,200 – €60,000 18.50% 18.50% 37%
€60,000 – €300,000 22.5% 22.50% 45%
€300,000 excess 22.5% 22.50% 45%

Allowances

There are a number of allowances available to reduce your liability to Spanish income tax. The main allowances include:

Personal allowance
Personal allowance 5,550
Personal allowance (65 & over) : (€5,550 + age allowance of €1,150) 6,700
Personal allowance (75 & over) : (€5,550 + age allowance of €2,550) 8,100

Income allowance for those earning under €14,000

Taxpayers with income under €15,000 are exempt from tax.

 

Children’s allowance (for children under 25 with income less than €8,000)
First child  2,400
Second Child  2,700
Third Child  4,000
Fourth Child  4,500
For each Child under 3 years above allowances are increased by:  2,800
Disability allowance
Degree of incapacity: up to 65% 3,000
Degree of incapacity: from 65%-100% 9,000
If third party care required add: 3,000
 

Elderly parents living with taxpayer (age 65 & over with income less than €8.000):

65-75

1,150
Over 75 2,550

Other allowances and deductions

Other allowances include relocation costs due to change in employment, working employees over 65 years of age, etc.

Employee Social Insurance contributions are also tax deductible.

Further tax and legal information can be found in our Spanish tax and legal brochure:  https://www.foresightconsultancy.com/spanish-tax-and-legal-brochure/