Income Tax: Individual Residents

The total tax payable is the sum of the tax calculated on two scales– the State Scale (Escala General) and the Scale of the Autonomous Region’s scale (Escala Autonomica). The Regional Government determines the latter.

Earned Income

For example the combined rate for earned income for residents of Andalucía reaches a maximum rate of 55% on income over EUR 300’000 as follows:

Taxable Base Tax Due Excess Rate Applicable
Up to Euros Euros Up to Euros %
€0.00 €0.00 €17,707.20 24.75%
€17,707.20 €4,382.53 €15,300.00 30.00%
€33,007.20 €8,972.53 €20,400.00 40.00%
€53,407.20 €17,132.52 €26,592.80 47.00%
€80,000.00 €29,631.14 €20,000.00 48.00%
€100,000.00 €39,231.14 €20,000.00 49.00%
€120,000.00 €49,031.23 €55,000.00 52.00%
€175,000.00 €77,631.23 €125,000.00 54.00%
€300,000.00 €145,131.20 Onwards 55.00%

Un-Earned Income, Interest and Savings

Dividends, interest and savings income are taxed at a combined special rate. For 2013 the rates are as follows:

Taxable Base Rate
From To Applicable
€0.00 €6,000.00 21%
€6,000.01 €24,000.00 25%
€24,000.01 Onwards 27%

Annuities and Employees moving to Spain

Special reduced rates apply to annuities depending on the age at which the contract was taken out.

Employees earning up to EUR600,000 a year may be able to benefit from tax concessions if they move to Spain. Under special tax laws and regulations, persons who move to Spain as a result of a contract of employment may elect to be taxed as non-residents for a period of five years. Instead of paying tax at a marginal rate of e.g. 55 per cent on worldwide income, the employee pays non-resident income tax at a flat rate of 24.75 per cent, only on income arising within Spain.


Please note: The information contained in these pages is given without charge and without responsibility. It is not a substitute for proper professional advice which we shall be happy to give if so instructed.