Personal Income Tax Declaration in Spain

Personal income tax in Spain is called IRPF – Impuesto sobre la Rentade las Personas Físicas. IRPF is calculated on a progressive scale, and as is customary, in different autonomies it can have its own specifics and benefits.

Who pays the IRPF tax?

– Tax residents of Spain (any individual who stays in Spain for more than 183 days a year).

This tax does not apply to moving employees who have chosen the Bonded Tax option under Beckham Law.

The taxable basis for issuing an IRPF is any income worldwide from:

– Labor activity (employee);

– Commercial activities (Autonomo)

– Bank deposits, dividends, shares in the profits of companies;

– Lease / sublease of real estate;

There are different rates for each income, for example, income from employment is taxed on a scale of 19% to 45% (base general), but income from dividends is taxed from 19% to 23% (base de ahorro).

Deductions (Reducciones) IRPF

The tax rate applies to the taxable base less tax deductions. So, what deductions can be applied:

Deduction for a declaration filed jointly by spouses,
Deductions for the amount invested in the pension plan,
Deductions for the amount of Alimony payments.
Reduction of the amount of tax payable (Deducciones) IRPF is the amount by which you can reduce directly the amount that you have left for payment to the treasury of the Kingdom.

Maternity (for working mothers with children up to 3 years old) € 1,200 per year
The large family
Single parent with two children
For renting permanent housing
Since the IRPF is the most “large-scale” tax, affecting almost all tax residents in Spain, there are many nuances in its calculation, the knowledge of which will help to reduce the final amount. Our staff will help you deal with all the complexities of the declaration and avoid unnecessary expenses.