Spain
Southern Europe • UTC+2 • Europe/MadridSpanish Personal Income Tax
Spain's tax system is progressive, with rates ranging from 19% to 47% for personal income. Corporate tax is set at 25%, and VAT is 21%.
Income Tax
19%–47%
Progressive rates
Corporate Tax
25%
Standard corporate tax rate
VAT / GST
21%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Spain operates a progressive tax system with personal income tax rates ranging from 19% to 47%. Corporate tax is set at 25%, and VAT is 21%.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Spanish-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Spain's progressive income tax bands for 2025 based on annual taxable income.
Tax Treaty
Double Taxation Agreements help avoid being taxed twice on the same income.
United States of America
Treaty ActiveThe treaty between Spain and the USA prevents double taxation on income, reduces withholding taxes, and clarifies residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United States of America
Agreement ActiveSpain and the US have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for US–Spain workers.
- Allows workers who split careers between the two countries to combine contribution periods.
- Applies to employees, self-employed, and certain government workers.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
25% standard rate for corporations
VAT Registration
Mandatory if annual turnover exceeds €85,000.
Freelancer Rules
Freelancers must register with the tax authorities and pay income tax and social security contributions.
Crypto Policy
Cryptocurrency gains are taxed as capital gains at rates up to 23%.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- Special tax regime for new residents with reduced rates for up to 6 years.
- No wealth tax on foreign assets for new residents.
Filing Roadmap
Register for a Tax Identification Number (NIE)
Apply for an NIE at the local police station or Spanish consulate.
Gather Income Documentation
Collect all relevant income documents, including employment slips and bank statements.
File Your Tax Return
Submit your tax return online via the Agencia Tributaria website by June 30.
Pay Any Tax Due
Ensure any taxes owed are paid by the filing deadline to avoid penalties.