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Taxes in Spain - basic information

9 May 2018
Taxes in Spain - basic information

Income tax from individuals - I.R.P.F. (Spanish. Impuesto sobre la Renta de las Personas físicas)

 It applies to all income individuals and larger assets. It is a progressive tax, tax rate increases with increasing the tax base. Persons liable to pay tax annually billed themselves with the Tax Office (Spanish. Delegación de Hacienda). Income tax applies to both Spanish citizens and foreigners resident in Spain, with the exception of diplomats and employees posted to work in this country. Tax scales can be found on pages Tax Office (Spanish. Agencia Tributaria).

Corporate tax (Spanish. Impuesto sobre Sociedades)

It includes profits of companies and other legal persons under Spanish law, and permanent representations of foreign companies in Spain. The tax base is the amount of income in a given accounting period, minus any losses from previous periods. The amount of tax payable may be paid in installments during the first twenty days of April, October and December, representing an advance on the given accounting period. Since 2008. Effective tax rate of 30%. In the case of foreign companies without permanent establishment in Spain income tax rate is 24%.

Value-added tax - IVA (Spanish. Impuesto de Valor Añadido)

This is an indirect tax charged on the sale of goods and supply of services, and multiphase, as charged on all marketing stages intermediates and good finalized. Taxed are also shopping and imports from countries belonging to the EU. For this type of transaction, the tax paid in the country of destination. In Spain, from 01.09.2012r. There are three VAT rates: 21%, 10% and 4%.

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