Spain VAT / Sales Tax

Detailed vat / sales tax rates and rules for Spain in 2026.

VAT / Sales TaxEUR

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%

Registration Threshold

No registration threshold; all businesses conducting taxable activities must register for VAT. The equivalence surcharge (recargo de equivalencia) applies to retail traders.

Reduced Rates

10% — Food products, water, hospitality services, passenger transport, housing, cultural events, eyeglasses, dental products4% — Basic food (bread, milk, eggs, fruit, vegetables, cereals), books, newspapers, pharmaceutical products, wheelchairs, social housing0% — Canary Islands use IGIC system with 0-7% rates instead of mainland VAT

How Spain VAT / Sales Tax compares

Spain’s standard VAT / sales tax rate of 21% is the 18th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Europe’s regional average of 19.9%.