Spanish Income Tax Rates 2012, 2013 and 2014
During May and June 2013 Spanish residents must (see declaration threshholds) prepare their tax return for income earned in 2012. The returns are due to be submitted by 30th June 2013.
- A temporary tax increase was announced for 2012 and 2013, which has since been extended to 2014.
- The deduction of cost of principal residence for taxpayers with an income greater than €24,000 was due to be scapped, though this is still deductable for 2012.
- Reduction of tax for income earned from rent from 50% to 40%.
Tax Rates 2012, 2013 and 2014
Rates for income after allowances and deductions
|Income Band||Tax Rate|
|€0 - €17,007||24.75%|
|€17,007 - €33,007||30%|
|€33,007 - €53,407||40%|
|€53,407 - €120,000||47%|
|€120,000 - €175,000 ||49%|
|€175,000 - €300,000||51%|
- Individual: €5,151
- 65 and over: €6,069
- 75 and over: €7,191
- First child €1.836
- Second child €2.040
- Third child €3.672
- Fourth and any additional children €4.182
- Additional for child under 3-years €2.244
Not everyone must submit a tax return. Individuals with an earned income which is already subject to employer deductions which is less than €22,000 do not have to submit a tax return. This limit is reduced to €10,200 if this income is earned from more than one employer.
Likewise, excluded are any other income less than €1,500, bank interest and other income less than €1,600 and income from rent below €1,000.
The above tax rates and allowances are not by any means complete. Additional allowances exist for special situations, for example, a parent allowance for a mother or father living-in with the tax payer. Please contact Farrand & Co to assist with making your declaration.
Please note that the top tax rates may differ per autonomous region.