Spain

Income tax Spain

Income tax

Whether you have an income from a wage, an allowance or pension, if your fiscal domicile is in Spain, you will be subject to the Spanish income tax for your worldwide income. If you are not considered a resident and your fiscal domicile is elsewhere, you will only be taxed on the Spanish part of your income.

To avoid being taxed twice, Spain has some double taxation treaties which can be found on the website of the Agencia Tributaria (Spanish only!). The average rates for the income tax can be found in the table below:

2017 Rates per household unitRate
Below € 5 5000%
From € 5 500 to €12 45019%
From €12 450 to €20 00024%
From €20 000 to €35 20030%
From €35 200 to €60 00037%
Beyond €60 00045%

(Source: Expatica, 2017)

Since the (partially independent) regions are free to decide on a part of the income tax, these rates may differ. For example, in Catalonia and Andalusia, the highest rates go up to 48%. You can find the way these taxes are calculated in the table below:

2016 rates - Source: Spence Clarke & Co
2016 rates - Source: Spence Clarke & Co

Besides these income taxes, Spanish income will also be subject to social security contributions. For other types of income (for example: renting out a Spanish property), specific rates are applicable for EU / Non-EU citizens:

Tax on rental income 2016 - Source: Spence Clarke & co