Spain
Top Income Tax
47%
Marginal rate
Corporate Tax
25%
Standard rate
VAT / Sales Tax
21%
Standard rate
Capital Gains
19%
Standard rate
Overview
Spain combines vibrant culture and excellent quality of life with a progressive tax system. The Beckham Law offers significant tax savings for qualifying new residents. Barcelona and Valencia are popular hubs for digital nomads.
Income Tax Brackets
| Income Range (EUR) | Tax Rate |
|---|---|
| 0 - 12,450 | 19% |
| 12,450 - 20,200 | 24% |
| 20,200 - 35,200 | 30% |
| 35,200 - 60,000 | 37% |
| 60,000 - 300,000 | 45% |
| 300,000+ | 47% |
Rates include both state and regional components. Autonomous communities may vary.
Corporate Tax
Standard Rate
25%
Small Business Rate
23%
23% for companies with turnover under 1M EUR. 15% for newly created companies in first 2 years.
VAT / Sales Tax
Standard Rate
21%
Reduced Rates
4%, 10%
4% super-reduced on bread, milk, books. 10% on food, transport, hospitality.
Capital Gains Tax
Standard Rate
19%
Long-Term Rate
28%
19% up to 6k, 21% 6k-50k, 23% 50k-200k, 27% 200k-300k, 28% over 300k.
Social Security Contributions
Employee
6.35%
Employer
29.9%
Self-Employed
30.6%
Self-employed minimum base ~300 EUR/month. Progressive system.
Special Tax Regimes
Beckham Law
Flat 24% tax rate on Spanish-source income up to 600k EUR for 6 years.
Eligibility: Must not have been Spanish tax resident in previous 5 years. Must relocate for employment.
Digital Nomad Visa
Digital Nomad Visa launched 2023. Minimum income ~2,520 EUR/month.
Pros & Cons
Pros
- Beckham Law flat 24% for new residents
- Digital nomad visa
- Excellent quality of life
- Large expat communities
Cons
- High top marginal rate (47%)
- Complex regional tax variations
- High employer social security costs
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Spain is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Spain government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.