Sotogrande lawyers and tax advisers

Spanish Tax 2017

Spanish income tax is charged on a sliding scale. Each autonomy has the power to amend the income tax rates in their autonomy.

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

2017 Income tax rates

Taxable income bands Tax Rate
Up to €12,450 19%
€12,450 – €20,200 24%
€20,200 – €34,000 30%
€34,000 –  €60,000 37%
Excess of €60,000 45%

Each autonomy has the power to amend these income tax rates (they can amend their element of the tax rate). Therefore you should double check that the autonomous community you live in hasn’t amended the above National rates. To illustrate, in Andalusia the 2017 tax rates are as follows:

Rate Tax
0 12,450.00 @ 19.50% = €2,428
12,450.00 20,200 @ 24.00% = €1,860
20,200 28,000 @ 30.00% = €2,340
28,000 35,200 @ 31.50% = €2,268
35,200 50,000 @ 37.50% = €5,550
50,000 60,000 @ 38.00% = €3,800
60,000 120,000 @ 46.00% = €27,600
120,000 Onwards @ 48.00% =

Allowances

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

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
Earned income allowance
For earnings €11,250 and under €3,700
For earnings between €9,180.01 to €13,260 €3,700 – 1.15625% x (earnings – €11,250)
For earnings over €14,450  0
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.

Spanish capital gains tax and savings tax

Spanish tax residents

Spanish savings income (interest, dividends, profits made on life insurance policies etc) and capital gains tax are charged at the following rates for Spanish tax residents:

Taxable Base 2017
Tax rates
%
Up to €6,000 19
€6,001 to €50,000 21
Excess 23

Non Spanish tax residents

Non Spanish residents are liable to Capital Gains Tax of 19% for disposals. The same rates apply to savings income e.g. dividends, interest etc.

Wealth tax

Residents wealth tax

Residents liable to wealth tax on worldwide assets in excess of €1,000,000 (€300,000 habitual residence allowance + €700,000 general allowance).

Non resident wealth tax

Non residents liable to Spanish wealth tax for Spanish assets in excess of €700,000.