To calculate the salary you receive at the end of the month you simply need to subtract from your gross salary (all the remunerations, whether they are salary or not, that justify the payment of your work in the day to day with the company), the deductions to the social security and the payment of the personal income …

How does income tax work in Spain?

In general, non-resident taxpayers are taxed at flat rate on income obtained in Spanish territory or which arises from Spanish sources, at the general rate of 24 percent for work income and at the rate of 19 percent on capital gains and financial investment income arising from Spanish sources.

How much tax is deducted from salary in Spain?

Taxation in Spain is a progressive tax and it ranges from 19% to 47%. The standard personal allowance is 5,550 EUR for individuals under 65 years old with no dependants. The employer withholds the employee’s income tax and transfers the payment to the tax authorities on a monthly basis.

What taxes do I need to pay in Spain?

Spanish tax on general income

  • Spanish income tax for incomes up to €12,450: 19%
  • Spanish income tax for incomes ranging from €12,451 to €20,200: 24%
  • Spanish income tax for incomes ranging from €20,201 to €35,200: 30%
  • Spanish income tax for incomes ranging from €35,201 to €60,000: 37%

How much tax do employees pay in Spain?

Taxation in Spain The personal income tax is also called Impuesto de Renta sobre las Personas Fisicas or IRPF. is a tax payed by both the employee and the employer. The standard rate for the employee is 6.35% and the employer pays 29.90% of an employee’s salary.

How do salaries work in Spain?

For part-time workers, the Spanish minimum wage is half of the total value. Domestic workers in households are employees. Employers of domestic workers must pay at least a pro-rata Spanish minimum wage per hour (if less than a full day) and follow the regulations of Spanish labor law.

What are the tax deductions for businesses in Spain?

The taxpayer does not carry on any business activities through a flow-through company during the tax period. A reduction of up to EUR 1,620 is established for taxpayers who do not meet these requirements and whose non-exempt income, including business income, in the tax period is under EUR 12,000.

Do you have to pay tax when you work in Spain?

There is a special tax regime for foreigners coming to work in Spain on an employment contract with a Spanish company. This is sometimes known as Beckham’s Law, as it was allegedly set up so that footballer David Beckham did not have to pay tax on his worldwide image rights when he joined Real Madrid in 2003.

Can you work for a UK company in Spain?

Employees that have been contracted by a UK company, but to be located and working in Spain will be subject to the Spanish law regarding the Social Security contributions before they are able to commence with any work.

How are income tax withholdings made in Spain?

The withholdings are made in accordance with a previous estimation of the final tax due. If the employees work for a Spanish related company or permanent establishment in Spain of the non-resident company, the withholdings on account must be made by the Spanish entity or permanent establishment for which the employee works.