Tax-free amount in Spain – what is it in 2025?
The tax-free amount in Spain is a topic that interests both residents and people planning to move or invest in this country. In 2025 the Spanish tax system provides specific limits that allow avoiding paying income tax on a portion of income. What is the tax-free allowance in Spain in 2025? How to calculate it and does it change every year? You will find the answers to these questions in the article below.
What will you find in the article?
What is the tax-free allowance in Spain?
The tax-free amount in Spain (Spanish: mínimo personal) is the amount of income from which you do not have to pay income tax. In 2025 this amount is 5.550 euro per year for a single person under 65. This means that if your annual income does not exceed this amount, you will not pay income tax in Spain.
It is worth noting, however, that the tax-free allowance in Spain may be higher for people over 65, people with disabilities, or those who have dependents.
For example:
- People aged 65-75: the tax-free allowance rises to 6.700 euro.
- People over 75: the tax-free allowance is 8.100 euro.
- Additional reliefs apply for children and dependents.
The tax-free allowance applies to both residents and non-residents, although for non-residents the rules may differ. You can read more about what taxes in Spain are for non-residents in the dedicated guide.
How to calculate income tax in Spain?
To calculate income tax in Spain, you need to consider several factors: the amount of income, the tax-free allowance, tax credits, and the tax rates in effect for the given year. In 2025 the Spanish tax system provides progressive tax rates, which start at 19% and can reach up to 47% for the highest incomes.
Step by step: how to calculate income tax in Spain?
- Calculate your annual gross income.
- Subtract the tax-free allowance in Spain (e.g., 5.550 euro for a person under 65).
- Apply appropriate tax credits (for children, dependents, disability).
- Calculate the tax according to the tax brackets:
– 19%: up to 12.450 euro
– 24%: from 12.451 to 20.200 euro
– 30%: from 20.201 to 35.200 euro
– 37%: from 35.201 to 60.000 euro
– 45%: above 60.000 euro
Note: in some regions there may be additional rates (e.g., 47% in Catalonia).
Example: if your income is 20.000 euro and the tax-free allowance in Spain is 5.550 euro, you will pay tax on 14.450 euro.
It is worth remembering that property in Spain and taxes is a broad topic, and income tax is just one of the many tax obligations of property owners.
Does the tax-free allowance change in Spain every year?
This amount may change depending on government decisions and the current economic situation. In recent years this amount has been raised several times to adjust to inflation and rising cost of living. In 2025 the tax-free allowance in Spain remains at 5.550 euro, but it is worth following changes in housing law in Spain, which may affect the level of reliefs and tax exemptions.
It is also worth noting that the tax-free allowance in Spain may differ by region (autonomous community), and some regions introduce their own reliefs and tax brackets.
Summary
The tax-free allowance in Spain in 2025 is 5.550 euro for people under 65 years old. For seniors and people with additional reliefs this amount may be higher. This is an important element of financial planning for both residents and non-residents. When calculating income tax, you should take into account the tax-free allowance in Spain, credits, and current tax rates. The tax-free allowance in Spain can change every year, so it is worth keeping up with the latest information and consulting with a tax advisor.
If you are planning to invest in real estate, also check the taxes and fees related to purchasing real estate in Spain in 2025 and the practical guide to taxes in Spain.
