Tax rates in Spain

Income Tax Rates in Spain

If you reside in Spain in for 183 days or more in a 12 month period, you must pay income tax on your worldwide income to the Spanish tax office.

If you do not reach this threshold but spend time in Spain and earn money in the country, you should pay tax on the income earned in Spain. 

In this instance, you would be taxed as a non resident.

Spain’s income tax rates for 2019 are as follows.

  • Up to €12,450: 19%
  • €12,450 – €20,200: 24%
  • €20,200 –  €35,200: 30%
  • €35,200 – €60,000: 37%
  • More than €60,000: 45%

The income taxes are divided into 50% payable to the region where you reside and 50% national.

If your income tax exceeds €22,000 per year, you need to submit a tax declaration (renta). 

The annual income tax return should be submitted no later than 30th June each year.

Personal Allowances

The personal allowance rates (tax credit) in Spain are:

  • Individual: €5,550 
  • Over 65 additional: €1,150
  • Over 75 additional: €1,400
  • Spouse additional: €3,400

Savings income

Income that is considered to be savings related includes:

  • Interest payments
  • Capital gains
  • Dividends from shares
  • Life assurance/annuity income

The savings tax rates for individuals who are resident are:

  • First €6,000: 19%
  • €6,000 – €50,000: 21%
  • More than €50,000: 23%

Non residents are taxed at either 19% for EU nationals or 24% for non-EU nationals on all income derived in Spain.

Paying tax as non-resident working in Spain

You can read more about the scheme often referred to as the “Beckham Law” here.