Taxes in Europe Database v2
Law 26/2014 of 27 November, which modifies Law No 35/2006 of 28 November on personal income tax, and Royal Decree No 439/2007 of 30 March regulating personal income tax.
The Central Government and the Autonomous Communities including the Basque Country and Navarre.
In accordance with Organic Law No 8/1980 of 22 September modified by Organic Law No 7/2001 of 27 December on the financing of the Autonomous Communities and Organic Law 3/2009, of 18 December, and the rules on the transfer of taxes from the Central Government, part of the revenue accrues to the Autonomous Communities. Law 22/2009
The whole Spanish territory.
- Natural persons who are normally resident in Spain.
- Natural persons who are normally resident abroad:
Non-resident taxpayers are subject to the Non-resident Income Tax.
As a general rule, the tax unit is the individual. Nevertheless, families have the option of being taxed:
Persons who form any of the following types of family unit may file joint tax returns:
1. Spouses who are not legally separated and, where relevant: (a) under-age children, with the exception of those who with their parents' consent, live independently from them, (b) adult handicapped children who are legally subject to extended or reinstated parental authority.
2. In cases of legal separation, or where there is no matrimonial link, a family unit formed by the father or the mother and all the children that live with either parent.
Joint taxation is governed by the general tax rules on calculating taxpayer's income, the gross and net taxable base, the tax debt, and by special rules.
Taxpayer's income includes all income, capital gains/losses and imputed income as laid down by Law No 35/2006, irrespective of the place where it was generated or the residence of the payer. The taxpayer's income consists of:
The taxable base is calculated as follows:
1. Income is qualified and computed according to its origin. Net income is the income liable less deductible expenses. Capital gains/losses are computed as the difference between assets' sale and purchase prices.
2. The corresponding net income reductions are applied, as appropriate, to each source of income.
3. The different types of income are pooled and offset according to its origin, and are classified in general income and saving income.
4. The general income tax base is subject to progressive tax rates (central and regional government tax schedules) and consist of:
5. The saving income tax base consist of:
Benefits in kind are fully taxable and valued at their cost for the employer or their market value. Notwithstanding, certain benefits in kind are only partially taxable.
Taxpayers' descendants allowance (more)
Taxpayers' ascendants allowance
Disabled taxpayers allowance
Personal and familly allowances are not taxed because a zero tax rate band applies.
If the general tax base is greater than personal and family allowances will form part of the general tax base. Otherwise, personal and family allowances will form part of the the general tax base and the remaining part will be included in the savings tax base.
Earned/business income tax allowance: taxpayers with a net income under EUR 14,450.00 (and not other non-exempt income over EUR 6,500.00) may reduce their earned/business income by the following amounts: EUR 3,700.00 for taxpayers with net income up to EUR 11,250.00, EUR 3,700.00 - (1.15625 x (earned/business income - EUR 11,250.00)), for taxpayers with net earned/business income between EUR 11,250.00 and EUR 14,450.00. Nevertheless, higher earned/business income allowances are granted for employees over 65, those unemployed accepting a new job requiring a change of residence or disabled persons. Furthermore, earned/business income taxpayers are also granted with a EUR 2,000.00 tax allowance, which is higher in case of job mobility and for disabled workers/professionals.
The Personal Income Tax Law on income tax provides for certain deductions:
1. From the gross amount due to the central government, defined as the sum of the quantities obtained from applying the general and the saving tax rate to the general and saving net taxable bases respectively. The gross amount due to the central government is reduced by the deduction below mentioned in (1) and the 50 % of the total amounts claimed in (2)-(7):
(1) Deduction for investment in new companies. 20% of the investment in equity of new companies, with an annual ceiling of EUR 50,000.00
(2) Deductions for business activities. Persons liable for income tax who are engaged in business activities are entitled to the business investment incentives established or to be established in the rules on corporation tax, with the same deduction percentages and ceilings.
(3) Deduction for gifts. Taxpayers may apply:
(4) Deductions for income from Ceuta and Melilla (provinces).
(5) Deductions for investment and expenditure on goods of cultural interest.
(6) Transitory deduction for investment in the habitual place of residence. Deduction of 7,5% of the amounts paid during the tax period covering the purchase/repair of taxpayer's own dwelling where the purchase/repair took place before 1 January 2013, with an annual ceiling of EUR 9,040.00. The basis consists of the amounts paid for dwelling purchase/repair, and the amortisation, interest and any other expenses connected with external funding.
(7) Transitoty deduction for rent of habitual place of residence for taxpayers with a tax base below EUR 24,107.20
2. From the gross amount due to the Autonomous Communities or on a complementary basis, defined as the sum of the quantities obtained from applying the autonomous or complementary rate and the special rate to the general and special taxable bases respectively. They are as follows:
(a) 50% of the total amount of deductions provided for with the limits and requirements as regards assets provided for in Article (2-5) and transitory deduction of Law 35/2006. See paragraph 1 deducctions (2)-(7).
(b) The amount of the deductions established by the Autonomous Communities in the exercise of the powers laid down in Law No 22/2009 of 18 December on the financing system of the Autonomous Communities and additional tax measures.
The net amount due to the central government, the Autonomous Communities or on a complementary basis is obtained by applying these deductions.
3. The following deductions are allowed from the total net amount due:
Deductions for international double taxation:
(a) Generally speaking, when the taxpayer’s income includes capital income or gains generated and taxed abroad, the lesser of the following amounts is deducted:
(b) Relief for double international taxation on income, dividends and shares in profits under international transparency regime.
(c) Relief for double international taxation by taxpayers when income is attributed to the transfer of rights of personal portrayal.
Deduction for maternity: deduction for women with children younger than 3 years that work by their own on other people’s account, given discharge in the corresponding regime of the Social Security and coexist with the children when each child does not obtain any income over € 8,000. In case of adopted or welcomed children, working women may claim for the deduction up to three year later of the adoption/welcome registration in the Civil Registry. When there is no registration need, the deduction may be claimed as of the date of the judicial or administrative resolution. The deduction may rises up to € 1,200 per year per child fewer than 3 years.
Deduction for large family or disabled dependent persons. Taxpayers obtaining income from employment and business activities are granted with a deduction up to EUR 1,200.00 for: 1) each disabled dependent relative descendant(ascendant; 2) ascendants/descendants forming part of a large family, and 3) lone parents with at least two children. This deduction can be increased for special large families.
Refundable tax credits.
As a general rule, the tax rate schedule applies to the general tax base, and so excluding the saving tax base
The tax schedule below shows combined (central & regional) tax rates applied to the general tax base in the more general case. Nevertheless, regional governments are entitled to approve and apply their own tax schedule.
Tax on lower
Rate on excess (%)
Next table shows tax rates aplied to the saving tax base by both the central and the regional governments:
Rate on excess
Since 1 January 2013, a 20% final tax rate applies for lottery prices exceeding € 2,500.
31st December of each year.
The Spanish State Tax Agency