What taxes are paid in Spain? A guide to the tax system in 2025
Taxes in Spain are a topic that interests both residents and those planning to move or invest in the country. Spain takes taxes very seriously, and the tax system is complex and varied. In 2025, taxes in Spain apply to both individuals and companies, and their amount and type depend on many factors, such as place of residence, source of income, or type of property owned. In this article, we explain what taxes are paid in Spain, what the tax system looks like, what tax obligations employees have, and how the tax filing process in Spain works.
What will you find in the article?
What taxes are paid in Spain?
The tax system in Spain is based on several main taxes that apply to both individuals and businesses. The most important taxes in Spain are:
- IRPF (Impuesto sobre la Renta de las Personas Físicas): personal income tax, progressive, with different rates depending on income level.
- Impuesto de Sociedades: corporate income tax (companies).
- IVA (Impuesto sobre el Valor Añadido): VAT (Value Added Tax), current rates and details can be found in the article: What is the VAT rate in Spain?
- IBI (Impuesto sobre Bienes Inmuebles): cadastral tax on real estate, more in the article: Cadastral tax in Spain – what is IBI and how much is it?
- Local taxes: various fees and taxes set by local authorities, e.g., for garbage collection, land use.
- IRNR tax (Impuesto sobre la Renta de No Residentes): income tax for non-residents. It applies to all individuals and legal entities who do not have tax resident status in Spain but receive income in the country, for example from: rental income, seasonal work, business activity, or asset sales. IRNR rates vary depending on the type of income and taxpayer’s country of origin, but most commonly are 19% for EU citizens and 24% for non-EU persons. Non-residents are required to file annual returns with the Spanish tax office and pay tax on income earned in Spain.
Taxes in Spain in 2025 are regularly updated, so it is worth monitoring changes in regulations and consulting a tax advisor.
What tax obligations do people working in Spain have?
People working in Spain are obliged to file returns with the Spanish tax office. Personal income tax (IRPF) in Spain is collected from both residents and non-residents, although the filing rules differ depending on tax status. Residents pay taxes in Spain on all their income, regardless of the country where it is earned. Non-residents file only on income earned within Spain. More on this can be found in the article: Taxes for non-residents in Spain.
The amount of tax in Spain depends on income level, type of employment contract, and region of residence. The employer deducts income tax advances, and the employee is obliged to file an annual tax return.
How often are tax returns submitted in Spain?
Tax returns in Spain are submitted annually, usually from April to June for the previous year. This applies both to personal income tax (IRPF) and corporate taxes. In the case of VAT (IVA), returns can be submitted monthly or quarterly, depending on the size of the company and type of activity.
Taxes in Spain require timely filing of returns, and delays can result in financial penalties. It is advisable to use a tax advisor’s services to help with correct filing and avoiding mistakes.
Does the tax system in Spain vary between regions?
Yes, the tax system in Spain varies depending on the region (autonomous community). Each community has the right to set its own tax rates and reliefs, especially regarding personal income tax and local taxes. For example, cadastral tax (IBI) may vary depending on the city or municipality.
Spain takes regional taxes very seriously, so before moving or investing it is worth checking which taxes apply in the specific region. Differences may concern not only rates but also available reliefs and exemptions.
What does the tax filing process in Spain look like?
The tax filing process in Spain is quite transparent but requires knowledge of local regulations. The main steps are:
1. Determining tax status (resident/non-resident).
2. Gathering all documents confirming income and expenses incurred.
3. Completing the appropriate tax returns (e.g., IRPF, IVA, IBI).
4. Submitting the return to the tax office (Agencia Tributaria) – this can be done online.
5. Paying the due taxes by the deadline.
It is important to remember that taxes in Spain in 2025 may vary depending on changes in regulations, so it is wise to follow updates and use expert assistance.
Summary
What taxes are paid in Spain? This is a complex topic. The tax system includes various types of taxes which may vary depending on the region and the taxpayer’s status. People working in Spain must remember the annual filing obligation, and non-residents should familiarize themselves with the rules of taxation on income earned in the country. If you wonder what the tax in Spain is, what taxes are in Spain in 2025, or what taxes are paid in Spain, it is worth using reliable sources and consulting a tax advisor. Remember, taxes in Spain are not only an obligation but also an opportunity to benefit from deductions and optimize your returns. Follow changes, use expert help, and file in accordance with the law!
