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/