Spain Tax Rates
Spain operates a progressive income tax system with federal rates from 19% to 47%, supplemented by regional surcharges that vary across its 17 autonomous communities. The country features a 25% corporate tax rate, a 21% standard VAT, and a special Beckham Law regime allowing qualifying new residents to pay a flat 24% rate on Spanish-source income. Spain also levies both wealth tax and a temporary solidarity tax on large fortunes.
Top Income Tax Rate
47%
Corporate Tax Rate
25%
VAT / Sales Tax
21%
Capital Gains Tax
28%
Detailed Tax Information
Income Tax Brackets
Spain applies a progressive personal income tax (IRPF - Impuesto sobre la Renta de las Personas Físicas) with general rates ranging from 19% to 47% at the national level. These rates are split between the state and regional governments (approximately 50/50). Spain's 17 autonomous communities can adjust their portion of the rates, resulting in effective top rates varying from about 45% to over 54% depending on the region. Catalonia and Valencia have some of the highest regional surcharges, while Madrid has among the lowest.
| Income Range | Tax Rate |
|---|---|
| €0 – €12K | 19% |
| €12K – €20K | 24% |
| €20K – €35K | 30% |
| €35K – €60K | 37% |
| €60K – €300K | 45% |
| €300K+ | 47% |
Corporate Tax
Spain levies corporate income tax (Impuesto sobre Sociedades) at a standard rate of 25%. Small and medium-sized enterprises with net turnover below €1 million benefit from a reduced rate of 23%. Newly created companies are taxed at 15% for their first profitable tax period and the following one. Credit institutions and hydrocarbon companies are subject to a 30% rate.
Standard Rate
25%
Small Business Rate
23%
Capital Gains Tax
Capital gains from savings (rendimientos del ahorro) are taxed at progressive rates: 19% on the first €6,000, 21% from €6,001 to €50,000, 23% from €50,001 to €200,000, 27% from €200,001 to €300,000, and 28% above €300,000. These rates apply to investment income including dividends, interest, capital gains from securities, and real estate gains. General capital gains (e.g., lottery prizes) are taxed at the general progressive income tax rates.
Rate
28%
VAT / Sales Tax
Spain applies a standard VAT (IVA - Impuesto sobre el Valor Añadido) rate of 21%, with reduced rates of 10% and 4% for essential goods and services. The Canary Islands use a separate system called IGIC (Impuesto General Indirecto Canario) with a standard rate of 7%. Ceuta and Melilla have their own indirect tax (IPSI) with rates from 0.5% to 10%.
Standard Rate
21%
Cryptocurrency Tax
Cryptocurrency gains in Spain are classified as savings income and taxed at the progressive savings rates: 19% on the first €6,000, 21% on €6,001-€50,000, 23% on €50,001-€200,000, 27% on €200,001-€300,000, and 28% above €300,000. Both crypto-to-fiat and crypto-to-crypto transactions are taxable events. Mining and staking income are treated as economic activity income taxed at general rates.
Tax Treaties
Spain maintains approximately 93 double taxation treaties in force. These treaties generally follow the OECD Model Tax Convention and typically reduce withholding taxes on cross-border dividends (often to 15% or 10%), interest (often to 10%), and royalties (often to 5-10%). Spain actively participates in OECD BEPS initiatives and has signed the Multilateral Instrument (MLI).
Treaty Network
93
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Spain
See how much you could save by moving here from your current country.
$-18,008
Tax in United States
$24K
24.4% effective
Tax in Spain
$42K
42.4% effective
Additional Cost
73.9%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
