Spanish Tax 2021
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:
2021 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 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 2021 tax rates are as follows:
| Taxable Income Bands | National | Andalusian rates | Full tax rate for residents in Andalusia |
| rates | |||
| % | % | % | |
| €0 – €12,450 | 9.5% | 9.5% | 19.0% |
| €12,450 – €20,200 | 12.0% | 12.0% | 24.0% |
| €20,200 – €28,000 | 15.0% | 15.0% | 30.0% |
| €28,000 – €35,200 | 15.0% | 15.6% | 30.6% |
| €35,200 – €50,000 | 18.5% | 18.7% | 37.2% |
| €50,000 – €60,000 | 18.5% | 18.9% | 37.4% |
| €60,000 – €120,000 | 22.5% | 22.9% | 45.4% |
| €120,000 – €300,000 | 22.5% | 23.7% | 46.2% |
| €300,000 and over | 24.5% | 23.7% | 48.2% |
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:
| Tax rates | Cumulative tax payable | ||
| €0.00 | €6,000.00 | 19% | €1,140.00 |
| €6,000.00 | €44,000.00 | 21% | €10,380.00 |
| €50,000.00 | €150,000.00 | 23% | €44,800.00 |
| €200,000.00 | Excess | 26% | Excess |
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 if EU resident (and some EEA residents) otherwise liable at the higher standard 24% rate.Non Spanish tax residents
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.