Spanish Taxes


In this article, we will focus on the main taxes in Spain, which is the obligation to pay both the citizens of Spain and on its residents.

One of the first and major tax is the income tax. Income tax is levied annually with Spanish citizens and its residents. This tax is a progressive tax – higher income – higher tax rate. The law obliges to file a tax return in up to 20 June of the following year. If you have a personal income of less than 22 thousand euros, the tax return cannot be made. This tax is subjective, because It depends on the economic condition of each individual who is affected by such conditions as: family structure, dependents, mortgage payments, etc.

Another important tax is value added tax (VAT). VAT is paid as citizens of Spain and its residents when making purchases and receiving services in the country. VAT varies from 4% to 21%, the minimum percentage accounted for essential goods, 10% are on medications, some foods that are not products of first necessity, public transport services, hotel services, and construction of residential buildings; 21% – all products that do not fall under the categories above.

A third tax on which we would like to talk to a real estate tax. This tax is paid for the right to ownership of real estate in rural and urban sites. The tax rate depends on the quality of housing, area, location, etc. Depending on the municipality where the property is located, tax rate varies from 0.50 to 2% of the cadastral value.

Next, let’s talk about the tax on vehicles. This tax pays directly by the owner of the vehicle by an individual for possession of a motor vehicle, suitable for use on public roads and registered in the state. Register. These are not taxed bikes, buses, trucks, tractors, trailers / semi-trailers.

In conclusion – a tax on notarized documents. Establishes tax rate of 0.15 and 0.30 cents for notarized documents drawn up on stamped paper. The variable of the value specified in the Escritura, the rate of 0.5% have a document, object of which is the amount of money or valuable thing, which is registered in the Register of Real Estate, Commercial or Industrial Restive Register.