Spanish Income Tax Explained
Spain has a progressive income tax system that is designed to provide a fair tax burden for its citizens. The income tax rates in Spain vary by income level and region. In this article, we will explain the income tax brackets in Spain, including regional variances.
Spanish Income Tax Brackets
The income tax system in Spain is progressive, meaning that the tax rate increases as income increases. The income tax rates in Spain vary by income level and region. The following table shows the income tax brackets in Spain for the 2023 tax year:
| Income Bracket | Tax Rate |
| Up to €12,450 | 19% |
| €12,451-€20,200 | 24% |
| €20,201-€35,200 | 30% |
| €35,201-€60,000 | 37% |
| €60,001-€300,000 | 45% |
| Over €300,000 | 47% |
It is important to note that the above tax rates apply to the whole of Spain except for the Basque Country and Navarra. These two regions have their own separate tax systems, and therefore have different tax brackets.
Regional Variances in Income Tax
As mentioned, the Basque Country and Navarra have their own separate tax systems, which means that they have different income tax brackets. The following table shows the income tax brackets in the Basque Country and Navarra for the 2023 tax year:
| Basque Country and Navarra Income Bracket | Tax Rate |
| Up to €12,450 | 19% |
| €12,451-€16,230 | 24% |
| €16,231-€24,200 | 30% |
| €24,201-€34,000 | 37% |
| €34,001-€120,000 | 45% |
| Over €120,000 | 52% |
It is important to note that the above tax brackets and rates may change from year to year. It is also important to consult with a tax professional to ensure that you are aware of your tax obligations and are taking advantage of any available deductions or exemptions.
The income tax system in Spain is designed to provide a fair tax burden for its citizens. The income tax rates in Spain vary by income level and region. It is important to be aware of the tax brackets and rates in order to make informed decisions about your finances and plan accordingly. If you are unsure about your tax obligations, or how to best optimise your taxes as a Spanish resident, you can speak to a Chorus adviser who can provide guidance and advice.
