Spain Explained

IRPF or Personal Income Tax in Spain

Last updated on May 28th, 2020 at 10:21 am.

In this article we will go through some relevant information regarding IRPF or Personal income tax in Spain. However, we would like to remind you that taxation in Spain is complicated, and advisably you should seek advice from an expert to avoid possible fines when doing your Spanish taxes.

IRPF or personal income tax: what is it?

IRPF or personal income tax in Spain is known as Impuesto de Renta sobre las Personas Fisicas or IRPF. Spanish income tax applies to your worldwide income, including:

  • Salaries of over €22,000 from a single employer, with Spanish withholding tax.
  • Self-employment.
  • Rental income of more than €1,000. 
  • Interest on savings or investments of over €1,600. 
  • Capital gains (i.e. profit from the sale of a property). 

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How much is IRPF or personal income tax in Spain?

In Spain, personal income tax is progressive; that is, there are different bands depending on how much you earn. However, the exact amount will depend on your region. Nonetheless, to give you an approximation, below are the income tax bands as set by the Spanish state in 2019.

Up to €12,45019%
From €12,450 to €20,20024%
From €20,200 to €35,20030%
From €35,200 to €60,00037%
Over €60,00045%

In Spain, everyone has a non-taxable personal allowance. How much this is will depend on your personal circumstances. There are also further allowances depending on your family, marital status, or number of dependents. 

Tax on pensions

For many people who relocate to Spain in later life, taxation on pensions tends to be of interest. The tax is based on your worldwide income and includes pensions, interest, gains or losses in stocks and shares, any rental income etc. Please note that any income received from the Crown Service i.e. Armed Forces, Regional Government, Central Government, Local Government, Fire Service and Police Force, and some teaching staff, is dealt with differently. However, due to recent changes, pensions received from the National Health Service are no longer included in this bracket. 

Should you still be paying tax on any income except that from the Crown Service at source in the United Kingdom you should request a Form SI 1976 Number 1919 Inland Revenue Office (U.K.) from the Tax Office in Cardiff, in order to stop having any tax deducted, and thus avoid any possible double taxation. For Irish Nationals a form IC 2 should be obtained from the International Claims Section in Nenagh, Co. Tipperary.

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More on Spanish Taxes

If you would like more information regarding IRPF or other Spanish taxes, we recommend you downloading our free ebook: Taxes in Spain.

We would like to remind you that navigating the taxation system of a foreign country can be an intimidating task – especially if you don’t speak the language. Furthermore, it’s important to seek expert advice on the specifics because of differences across regions.

At Ábaco Advisers, our team of experienced fiscal and taxation advisers can help you make sure you follow regulations. For more information, without obligation, you can fill out this form and we will get in touch with you as soon as possible.

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