Personal Income Tax (IRPF) — Spain

Lowest bracket: 9.5% state + about 9.5% regional (Madrid 8.5%). The basic personal allowance of €5,550 is taxed at 0%.

Middle-lower bracket. Most minimum wage and entry-level workers fall here. 12% state + about 12% regional = ~24% combined.

Middle bracket covering average Spanish salaries. 15% state + about 15% regional = ~30% combined. Significant tax burden starts here.

Upper-middle bracket for professionals, managers. 18.5% state + about 18.5% regional = ~37% combined. Major jump in taxation.

High earner bracket. 22.5% state + about 22.5% regional = ~45% combined (Madrid 43%). Applies to senior professionals, executives.

Top bracket: 24.5% state + regional rate = 47% on the standard scale; Madrid 45%, Catalonia 50%, Valencia up to 54%. One of highest rates in Europe.

Most tax-friendly region. Regional rates 2026: 8.5% (to €13,362), 10.7% (to €19,005), 12.8% (to €35,426), 17.4% (to €57,320), 20.5% (above). Plus state rates = top combined rate 45%. Also offers full wealth tax exemption.

Among highest regional rates. Additional solidarity surcharge on high incomes. Regional top rate 25.5% + state 24.5% = 50%. Popular with expats but highest tax burden in Spain.

Highest total rates in Spain. Aggressive regional taxation on upper incomes. Top regional rate of 29.5% pushes top earners to 54%. Wealth tax also applies. Beautiful region but tax-unfriendly.

Mid-range taxation. Basque Country and Navarre have special foral tax systems with different structures. Canary Islands offers special ZEC regime for qualified companies. Each region offers unique deductions.

First bracket for savings income: dividends, interest, capital gains, investment income. Uniform nationwide - no regional variation. Significant advantage over general income rates.

Middle savings bracket covering most investors. Still substantially below general income rates at these levels (30-37%).

Upper savings bracket. Even at this level, savings rate much lower than general income rate (37-45%).

High savings income. Introduced 2023 to increase taxation on investment returns for high wealth individuals.

Maximum savings rate. Still significantly lower than 47% general income top rate. Encourages investment income over employment income from tax perspective.

Tax resident if spend more than 183 days in Spain during calendar year. Days counted include any part of day present. Exceptions during count: documented temporary absences for work, medical treatment. Must register with tax authorities upon becoming resident.

Also tax resident if Spain is centre of economic interests (main source of income, base of business activities) OR immediate family (spouse, minor children) habitually reside in Spain. Can be resident even if spend <183 days.

Spanish tax residents taxed on worldwide income regardless of source. Must report foreign employment, business, investment, rental income. Double taxation treaties provide credits for foreign taxes paid to avoid paying twice.

Non-residents taxed only on Spanish-source income at flat rates: 24% on general income (19% for EU/EEA residents), 19% on savings income. No personal allowances or deductions. Simpler tax treatment but less favorable for lower incomes.