Tax
Progressive income tax shared with the regions, plus VAT and company tax
Residents pay personal income tax (IRPF) on worldwide income at combined state and regional rates, so the effective burden varies by autonomous community. Corporate tax and VAT are state-wide, and the tax agency runs an extensive electronic filing regime.
Key rules
- Tax residence generally arises after more than 183 days in Spain in a calendar year.
- IRPF rates are set jointly by the state and the autonomous community of residence.
- Inheritance and wealth taxes are regionally regulated, producing very different outcomes across Spain.
Governing law
- Personal Income Tax Act (Ley del IRPF)
- Corporate Income Tax Act (Ley del Impuesto sobre Sociedades)
In practice
Because inheritance and wealth taxes are devolved, residence in a particular community can change a liability dramatically; take advice before relocating within Spain.