{"id":3260,"date":"2021-12-03T17:22:00","date_gmt":"2021-12-03T16:22:00","guid":{"rendered":"https:\/\/delaguialuzon.com\/?p=3260"},"modified":"2026-11-10T16:56:23","modified_gmt":"2026-11-10T15:56:23","slug":"types-of-taxes-in-spain","status":"publish","type":"post","link":"https:\/\/delaguialuzon.com\/en\/blog\/types-taxes-spain\/","title":{"rendered":"What are the different types of taxes in Spain?"},"content":{"rendered":"\t\t
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The tax system in Spain, along with Spanish tax rates<\/strong> has some similarities with other European countries.<\/p>

However, when you want to settle in Spain, a basic knowledge of the country’s tax system is required.\u00a0<\/p>

You must keep in mind that the Spanish tax system has a variety of sectors, with each autonomous community having its own regulations.<\/p>

For example, in the Canary Islands, the IVA is replaced by the IGIC<\/strong>\u00a0(Impuesto General Indirecto Canario<\/a>).<\/p>

Who should pay taxes in Spain?<\/h2>

Not all citizens are taxpayers.<\/p>

Under certain minimum income conditions, some individuals can be exempt from taxes.<\/p>

In addition, personal income tax applies to residents<\/strong> for tax purposes, and you will need a Spanish tax number<\/strong>, which for foreign nationals is the NIE<\/a>.<\/p>

You are tax resident if you spend more than 183 days of a calendar year in Spain, or if the main centre of your economic activities or interests is in Spain. Non-residents pay non-resident income tax on their Spanish income instead.<\/p>

It should be noted that bilateral agreements exist between Spain and other countries intending to avoid<\/a> double taxation<\/strong>.<\/p>

The Agencia Tributaria<\/a> deals with all taxation in Spain.\u00a0<\/p>

Types of Spanish taxes<\/h2>

Spanish taxes fall into separate categories:<\/p>

1. Direct taxes<\/h3>

A tax is said to be direct when it is paid and borne by the same person.<\/p>

Personal income tax (IRPF)<\/h4>

This tax is the most important in all companies.<\/p>

It is levied on income received by citizens in a tax year.<\/p>

As it measures the economic capacity of taxpayers, it is also a progressive tax, since the people who have generated the most money are the ones who pay the most.<\/p>

It applies to all natural persons resident in Spain and is charged at progressive rates, so each higher band of income is taxed at a higher rate.<\/p>

Each rate is the sum of a state rate and a regional rate set by each autonomous community, so the combined rate depends on where you live. In 2026 the state rates run from 9.5% to 24.5%, the top rate applying to income above \u20ac300,000 (article 63 of the IRPF law).<\/p>

In the Valencian Community, the 2026 regional rates run from 8.8% to 29.35% (on income above \u20ac200,000), which gives combined rates from 18.3% to 53.85%. Savings income, such as interest, dividends and capital gains, is taxed separately at 19%, 21%, 23%, 27% and 30% in 2026.<\/p>

This also applies to those who are self-employed<\/a>.<\/p>

It applies to three types of income: rents<\/strong>, salaried work<\/strong> and invoices<\/strong>.<\/p>

The peculiarity of income tax in Spain and Spanish tax rates<\/strong> is that it is levied at source, directly from wages.<\/p>

Nevertheless, it is necessary to fill out an online tax return once a year<\/strong>, the purpose of which is to regularise the amount received by the State with the actual amount due.<\/p>

If you overpaid, the return itself produces the refund; if you underpaid, you pay the state the difference.<\/p>

Non-resident income tax (NRI)<\/h4>

This is a tax on income generated in Spain by people who do not live in Spain.<\/p>

In 2026 the general rate is 24%, or 19% for residents of another EU member state or of an EEA state with an effective exchange of tax information. Dividends, interest and capital gains are taxed at 19%.<\/p>

Corporate tax<\/h4>

This is one of the direct taxes levied on companies to tax their profits.<\/p>

Companies are subject to corporation tax<\/strong> if they have their registered office on Spanish territory and it applies to the profits of the enterprise.<\/p>

The general rate is 25%. In 2026, companies with turnover below \u20ac1 million pay 19% on the first \u20ac50,000 of taxable income and 21% on the rest, other small companies (turnover below \u20ac10 million) pay 23%, and newly created companies pay 15% in their first two years with a positive tax base. Under Ley 7\/2024 these rates keep falling, to 17% and 20% for the smallest companies from 2027 and to 20% for other small companies from 2029, while a 1% rate applies to certain investment vehicles such as SICAVs.<\/p>

Learn more about the ETVE tax regime<\/a> to see if you can benefit.<\/p>

Estates and donations<\/h4>

This is a tax to be paid when transferring assets free of charge.<\/p>

The donation is made during their lifetime by a person who wants to pass on some of their property.<\/p>

Succession or inheritance<\/a> is made after death.<\/p>

Bear in mind that this is a tax ceded to the autonomous communities<\/a>, so there are differences between each community.<\/p>

In 2026 the Valencian Community gives 99% relief on the tax payable for inheritances received by spouses, descendants and ascendants, and for gifts between spouses, parents and children, and grandparents and grandchildren, subject to conditions. Brothers, sisters, uncles, aunts, nephews and nieces receive 25% relief.<\/p>

Wealth tax<\/h4>

This tax is levied on the wealth of individuals.<\/p>

It is also a tax ceded to the autonomous communities and it is complementary to the IRPF<\/strong>.<\/p>

It is charged on an individual\u2019s net wealth above a minimum exempt amount, which is 700,000 euros by default, although each region can set its own. For wealth tax accruing on 31 December 2026, residents of the Valencian Community have a minimum exempt amount of 2,000,000 euros, and the main home is exempt up to 300,000 euros.<\/p>

The solidarity tax on large fortunes also applies across Spain to net wealth above 3,000,000 euros, at rates of 1.7%, 2.1% and 3.5% after a 700,000 euro exempt amount, and any wealth tax paid for the same year is deducted from it.<\/p>

2. Indirect taxes<\/strong><\/h3>

Spanish tax rates are levied on economic transactions (for example, VAT), taxing services or consumer goods.<\/p>

VAT<\/h4>

Value-added tax<\/strong> is the most important indirect tax.<\/p>

It is determined by the consumption of goods and services by individuals and enterprises.<\/p>

In 2026 there are 3 VAT rates: 21%<\/strong>, 10%<\/strong> and 4%<\/strong>.<\/p>

The default is 21%, however, different rates apply to certain goods and services.<\/p>

Food in general, glasses and lenses, and the hotel sector are subject to 10%.<\/p>

The necessities of food, books, newspapers, medicines, and vehicles for disabled people are subject to 4%.<\/p>

Transfer tax and stamp duty (Impuesto sobre Transmisiones Patrimoniales y Actos Jur\u00eddicos Documentados<\/em>)<\/h4>

This is a tax that falls into 3 categories.<\/p>

  1. Transfer duties are levied on all transfers for consideration (no donation or inheritance) that are not subject to VAT. At November 2026 the general rate for property purchases in the Valencian Community is 9%, or 11% where the value exceeds \u20ac1 million, with reduced rates in some cases.<\/li>
  2. Stamp duty is levied on the formalisation of certain notarial, commercial and administrative documents. In the Valencian Community the general rate at November 2026 is 1.4%, with lower rates in some cases.<\/li>
  3. Capital duty (operaciones societarias) still applies to operations such as capital reductions and the dissolution of companies, but incorporating a company or increasing its capital has been exempt since December 2010. Transfer tax and stamp duty are devolved to the autonomous communities.<\/li><\/ol>

    Simplify your taxes in Spain<\/h2>

    Understanding your tax obligations and Spanish tax rates<\/strong> can be complex, but with the right guidance, it doesn\u2019t have to be overwhelming.<\/p>

    If you have any questions or uncertainties, don\u2019t hesitate to reach out to Delagu\u00eda y Luz\u00f3n<\/a>.<\/p>

    We offer professional tax and accounting services in English, Spanish, Russian and French.<\/p>

    Entrust your tax management<\/a> to our team of professionals!<\/p>

    Our experienced lawyers are here to assist you every step of the way.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    FAQ<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    What are Spanish tax rates? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    Spanish tax rates vary by tax type. In 2026, personal income tax (IRPF) on general income combines a state rate and a regional rate, so it depends on the region: from 18.3% to 53.85% in the Valencian Community. Savings income is taxed at 19% to 30%, and VAT rates are 21%, 10% or 4% depending on the goods or services.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    What is IRPF in Spain? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    IRPF (Impuesto sobre la Renta de las Personas F\u00edsicas) is Spain\u2019s personal income tax, applied progressively based on income from work, rentals, and invoices.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    What is a Spanish tax number? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    A Spanish tax number, like the NIE for individuals or CIF for companies, is required for tax filing and economic activities in Spain.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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    What are the types of taxes in Spain? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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    Spain\u2019s taxes fall into two categories: <\/p>

    • Direct Taxes: Personal income tax (IRPF), non-resident income tax, corporate tax, wealth tax, and estate\/gift tax.<\/li>
    • Indirect Taxes: VAT and transfer taxes.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t