Spain (ES)
Spain is a parliamentary constitutional monarchy of 17 autonomous communities stretching from the sun-scorched Andalusian coast to the Pyrenean peaks, renowned for its passionate flamenco and football culture, world-famous gastronomy from tapas to Michelin-starred restaurants, 300+ days of sunshine on the Costa del Sol and the Balearic Islands, and a relaxed Mediterranean pace of life that consistently ranks it among Europe's most desirable destinations for expats.
Tax & Payslip Guide
Understanding your taxes in Spain — tax year 1 January – 31 December.
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | 12,450 | 19% | First bracket (state 9.5% + regional ~9.5%, varies by Comunidad Autónoma). Minimum personal allowance €5,550 per taxpayer. |
| 12,450 | 20,200 | 24% | Second bracket (state 12% + regional ~12%). |
| 20,200 | 35,200 | 30% | Third bracket (state 15% + regional ~15%). |
| 35,200 | 60,000 | 37% | Fourth bracket (state 18.5% + regional ~18.5%). |
| 60,000 | 300,000 | 45% | Fifth bracket (state 22.5% + regional ~22.5%). From €300k: state 24.5% + regional, total ≈47–50% depending on region. |
| 300,000 | ∞ | 47%–54% | Top bracket varies significantly by region: 47% in Madrid (lower regional rate); up to 54% in Valencia and some regions. Catalonia 50%, Andalucía ~49%. |
🏛️ Social Contributions
Main social security contribution for general pension, sick leave, maternity. Base €1,184/month minimum (=SMI 2026) to €4,909.50/month maximum.
Funds paro (contributory unemployment benefit).
Only employer pays. Protects workers if employer becomes insolvent.
Funds professional training programmes.
Pension solidarity contribution rising gradually until 2050. Rates effective 1 January 2026 (raised from 0.13%/0.67% in 2025).
Progressive quotas by net yearly earnings — 13 brackets from €625 (lowest bracket) to €4,909 (top). New autónomos pay "tarifa plana" €80/month flat for the first 12 months (Ley 31/2022).
🛒 VAT Rates
Canary Islands use IGIC (Impuesto General Indirecto Canario) — 7% standard, not IVA. Ceuta and Melilla use IPSI, not IVA.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Régimen especial de trabajadores desplazados a España ("Ley Beckham" / "Beckham Law", Art. 93 LIRPF): flat 24% rate on Spanish-source employment income up to €600,000 (47% above). Only Spanish income is taxed; worldwide wealth, gains and dividends escape Spanish IRPF for 6 years. Eligibility: you must not have been tax resident in Spain in the 5 previous years, move for a new employment contract or to become a company director, and apply via Modelo 149 within 6 months of Seguridad Social registration. Since Ley 28/2022 also extended to Digital Nomad Visa holders and remote workers.
📋 Double Tax Treaties
Spain has 100+ double-tax treaties, including with USA, UK, Germany, France, Mexico, Argentina, Colombia, Chile, Brazil, India, China.
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