What is the income tax rate in Spain?

Does Spain have high taxes?

There are no state or regional income taxes, although Spain does have property taxes. Capital gains get tax imposed at a rate of 19% up to a gain of EUR 6,000. Gains over EUR 6,000 get taxed at 21%.

How much can you earn in Spain without paying tax?

Tax deductions are available to residents of Spain. The basic personal allowance is €5,550 for those under the age of 65, €6,700 for those over 65, and €8,100 for those over 75. You can claim an additional allowance of €2,400 if you have children under the age of 25 living with you.

Are taxes in Spain higher than us?

Spanish residents must also declare assets outside Spain using form Modelo 720 if the assets have a combined total value of more than 50,000 Euros. Spanish income tax rates are relatively high compared to in the US, so for many people it will make sense to claim the Foreign Tax Credit.

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How can I avoid paying tax in Spain?

Apply for the Beckham Law

  1. The Beckham Law is a special tax regime that is applied to foreigners who come to Spain due to work reasons. …
  2. Basically that you can avoid paying a progressive income tax that can rise up to 45%, and pay a flat fee of 24% instead.
  3. So, as you can see, this creates important tax savings for you.

Do pensioners pay tax in Spain?

Government service pensions paid to retired members of the fire service, police, civil servants, armed forces and local authorities are exempt from Spanish tax. Under the new treaty the amount of the pension is still exempt but must be included when calculating how much tax is due in Spain.

Do I have to pay tax on my state pension in Spain?

Pensions are taxed in Spain at the progressive scale rates under general income, which will depend on the Autonomous Region where the individual is resident. Each taxpayer can apply €2,000 as deductible expenses on earned income that includes most types of pension.

Do I have to pay tax on my UK state pension in Spain?

Spanish residents with UK state pensions or occupational pension income are taxable in Spain and not in the UK, under the UK-Spain Double Taxation Treaty. … Contributions from employers to personal pensions may not benefit in their entirety from the annuity allowance.

Can I be resident in Spain and pay tax in UK?

All the incomes generated from the possession of a property in the United Kingdom can be taxed both in Spain and in the UK. Again, the fiscal resident has the right to apply the international double taxation deduction so she does not pay the same percentage twice for her income tax.

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How much tax do expats pay in Spain?

Expat Taxes in Spain: Current Rates

Earnings in Euro (EUR) Rate Applicable to Income Level (%)
12,450-20,200 24%
20,200-35,200 30%
35,200-60,000 37%
60,000+ 45%

Is tax higher in Spain than UK?

The UK Has the Highest Property Taxes

Spain’s property taxes are substantially lower than the UK. In fact, the UK’s property taxes are the second-highest in the developed world. Only the United States has a higher property tax rate than the UK.

What are the pitfalls of retiring to Spain?

Why Does Relocation To Spain Go Wrong?

  • Missing Family and Friends. It is the experience of many estate agents that the impulsion to move back to a home country comes from the female in a relationship. …
  • Marital Issues. …
  • Unrealistic Expectations. …
  • Cheaper Way of Life. …
  • Finding Work. …
  • Property Problems.