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Spain Tax Guide

Europe
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
38/100
High Tax
Business Tax Score
65/100
Moderate

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days or center of vital interests or principal place of business

Income Tax Rates

Top Marginal Rate
47-54%%
Structure
Progressive 19-47% state + regional variations (up to 54% in some regions)

Foreign Income Treatment

System
Worldwide
Details
Spanish residents taxed on worldwide income; foreign tax credits available

Investment Income

Capital Gains
19-28%%
Dividends
19-28%%
Interest
19-28%%

Progressive rates 19-28% on capital gains


Wealth & Inheritance

Wealth Tax
Yes - Wealth tax 0.2-3.5% on net assets; temporary solidarity tax 1.7-3.5% for >€3M
Inheritance Tax
Yes - Inheritance tax varies by region; up to 36% in some areas

Special Regimes

Beckham Law
Flat 24% tax on Spanish income for first 6 years for qualifying expats

Practical Notes

High tax burden varies by region. Beckham Law attractive for high-earning expats. Wealth tax applies.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
25%
Effective Rate Note
25% standard rate; 15% for new companies first 2 years; 30% for credit institutions
Free Zone / Incentives
Canary Islands Special Zone (ZEC) offers 4% rate

Withholding Taxes

Dividends
19%
Interest
19%
Royalties
24%

VAT / GST

Rate
21%
Note
21% standard VAT; reduced rates 10% and 4%

Compliance & Substance

Substance Requirements
High - strict requirements
Compliance Friction
High - complex tax system

Notable Regimes

  • Beckham Law for individuals
  • ZEC Canary Islands 4%
  • Patent Box

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Spain?

Spain has a top personal income tax rate of 47-54%. The tax structure is: Progressive 19-47% state + regional variations (up to 54% in some regions). See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Spain?

Spain uses a worldwide system for foreign income. Spanish residents taxed on worldwide income; foreign tax credits available

What are the residency requirements for Spain?

Tax residency in Spain generally requires 183 days of physical presence. 183 days or center of vital interests or principal place of business. Always verify current rules with official sources.

Is there a wealth tax in Spain?

Yes, Spain does have a wealth tax. Wealth tax 0.2-3.5% on net assets; temporary solidarity tax 1.7-3.5% for >€3M

What is the corporate tax rate in Spain?

The corporate tax rate in Spain is 25%. 25% standard rate; 15% for new companies first 2 years; 30% for credit institutions