TAXES IN SPAIN. THE PERSONAL INCOME TAX
The incomes received in Spain by persons are taxed with the Income Tax (“Impuesto sobre la Renta” or “IRPF”). These are some of the main features of this tax in Spain:
The incomes are splitted between “renta general” and “renta del ahorro”.
The incomes included as “renta general” are taxed to a highest rate close to 48-50% for income over 100.000 euros. These incomes include among others salaries and rentals.
The incomes included as “renta del ahorro” are dividends, interests and capital gains. In this case the % rate can go from 19 to 23% in 2020.
The salaries are taxed monthly with the withholding tax (“retención de IRPF”) in account of the final tax return, to prepare from April to June. The company is the responsible to pay this tax to the Tax office (usually quarterly).
There some differences of the tax rate in the Income Tax between Spanish Comunidades Autónomas.
The final Income Tax return can be prepared as individual or joint declaration (“declaración conjunta”). In this case are included the incomes of the spouse / husband.
There are some deductions in the Income Tax (on rentals, due to Pension Plans, in case of having children, etc.)
If you have any questions about this information you can contact with jose@asesoriagarcialopez.es