{"id":3260,"date":"2021-12-03T17:22:00","date_gmt":"2021-12-03T16:22:00","guid":{"rendered":"https:\/\/delaguialuzon.com\/?p=3260"},"modified":"2026-04-29T22:54:26","modified_gmt":"2026-04-29T20:54:26","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, to be taxable, you must have the status of a resident<\/strong>, have a Spanish tax number, <\/strong>and have an assigned NIE<\/a>.<\/p>

This is granted to any natural person who lives in Spain for more than 183 days a year, or who concentrates the bulk of their economic activities in the country.<\/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 people resident in Spain and the retention rate is progressive varying between 19% and 45%, depending on income.<\/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, you then must fill out an application for a refund, or if you underpaid, alternatively 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>

Corporate tax<\/h4>

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

Although the general tax rate has been 25% since 2016, specific rates of 20%, 15% and 1% may apply in certain cases.<\/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>

It is important to take into account that this is a tax ceded to the autonomous communities<\/a>, so there are differences between each community.<\/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 calculated based on the value of all of an individual\u2019s property, starting from 700,000 euros and with an exemption for real estate assets of 300,000 euros.<\/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>

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.<\/li>
  2. Stamp duty is levied on the formalization of certain notarial, commercial and administrative documents.<\/li>
  3. Partnership tax is levied when companies are incorporated. It is also a tax 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&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. Personal income tax (IRPF) ranges from 19% to 45%, while 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