HomePage Contact Us About Us Advertise with us
Custom Search

Spain Tax Laws and Tax System











Tax in Spain


Last partial update, MAy 2016.

Individual Income Tax: Spain's individual income tax rates for 2016 are progressive, from 19% to 45%.

Dividend and interest income are taxed at 19% for income up to EUR 6,000. At 21% for income between EUR 6,001-EUR 50,000 and at 23% for income exceeding EUR 50,000.

Spain personal annual tax rates 2016 (EUR)


Income (EUR) %
1-12,450 19
12,451-20,200 24
20,201-35,200 30
35,201-60,000 39
60,001 and over 49


Note: The tax rates include Spain's state tax and local tax.

In 2016 in certain autonomous regions in Spain the top marginal income tax rate is up to 46%.

Corporate Tax: Spain's corporate tax rate for 2016 is 25%.
Certain small companies pay a lower corporate tax rate of 25% for income of up to EUR 300,000.
Capital Gains: Capital gains of companies are added to the regular income and are taxable at 30% rate. Under certain terms there is a participation exemption for sale of shares of a subsidiary.
Individuals: Pay tax varying from 19% to 23%.


Residence

A foreign company is resident if incorporated in Spain or have its actual management in Spain.
An individual is resident when staying in Spain for more than 183 days in a tax year or when the center of business life is in Spain.


Spain Tax Deductions

  • Losses are carried forward with no limit.
    There is no carry back of losses.
    There is no carry back of losses.
  • Depreciation is deducted using the straight line method or the declining balance method which is allowed for new tangible assets having estimated life of more than three years.
  • Some rates in the straight line method are:
    • Computers- 26%
    • Machinery- 12%
    • Vehicles-16%
    • Buildings-3
  • There is company consolidation for tax purpose, subject to certain terms.
  • Thin capitalisation rules relate to interest expenses to non EU parties as dividend when the debt to equity ratio exceeds 3:1 ratio.
  • Bad debts are tax deductible up to 1% of the total debtors.


Spain Personal Credits and Deductions

For Spanish residents there is a basic tax credit of EUR 5,151 per year.
The sum is increased for people aged 65 or more with additional deduction for other dependent family members and disabled people.
Deductions are also permitted for payments to Spanish pension plans, up to a limit, and for alimony payments.
15%of the total purchase price of the main residence is tax deductible, up to a limit.
10% of donations are deductible, subject to a ceiling.


Deduction of Tax at Source

In Spain tax is deducted at source from the following payments to non residents:
Dividend- 19%.
Interest- 19%.
Royalties- 24%.
Branch remittance to head office- 19%.


Note: when relevant the tax withholding rates are subject to EC directive or double tax treaties.

Social Security

The contributions by the employer and the employee are subject to ceiling defined by law.

Employer: 23.6% of the gross salary.
Employee: 6.35% of the gross salary.


Spain Taxes | Spain Tax News | Spain Inflation Rate | Spain GDP | Spain VAT Tax | Spain Unemployment Rates | Spain Business News | Spain Double Taxation Prevention Treaties | Spain Business Opportunities and B2B Marketplace | Barcelona chartered Accountants and Accounting Firms | Madrid Accountants and Accounting Firms | Barcelona Luxury Hotels | Granada Luxury Hotels | Granada Luxury Hotels | Malaga Luxury Hotels | Marbella Luxury Hotels | Valencia Luxury Hotels





Austria Income Taxes and Tax Laws | Brazil Income Taxes and Tax Laws | Bulgaria Income Taxes and Tax Laws | BVI Income Taxes and Tax Laws | Canada Income Taxes and Tax Laws | China Income Taxes and Tax Laws | Croatia Income Taxes and Tax Laws | Cyprus Income Taxes and Tax Laws | Czech R. Income Taxes and Tax Laws | Estonia Income Taxes and Tax Laws | Finland Income Taxes and Tax Laws | France Income Taxes and Tax Laws | Germany Income Taxes and Tax Laws | Greece Income Taxes and Tax Laws | Hong Kong Income Taxes and Tax Laws | Hungary Income Taxes and Tax Laws | India Income Taxes and Tax Laws | Iran Income Taxes and Tax Laws | Ireland Income Taxes and Tax Laws | Israel Income Taxes and Tax Laws | Italy Income Taxes and Tax Laws | Japan Income Taxes and Tax Laws | Latvia Income Taxes and Tax Laws | Lithuania Income Taxes and Tax Laws | Malta Income Taxes and Tax Laws | Mexico Income Taxes and Tax Laws | Montenegro Income Taxes and Tax Laws | Netherlands Income Taxes and Tax Laws | Poland Income Taxes and Tax Laws | Portugal Income Taxes and Tax Laws | Romania Income Taxes and Tax Laws | Russia Income Taxes and Tax Laws | Serbia Income Taxes and Tax Laws | Slovakia Income Taxes and Tax Laws | Slovenia Income Taxes and Tax Laws | Spain Income Taxes and Tax Laws | Singapore Income Taxes and Tax Laws | Tunisia Income Taxes and Tax Laws | Turkey Income Taxes and Tax Laws | U.K. Income Taxes and Tax Laws | Ukraine Income Taxes and Tax Laws | U.S.A. Income Taxes and Tax Laws



Go Back

© All copyrights reserved

Homepage | Security Policy | Terms of Service