Taxes

Learn about income and sales taxes, and how foreigners are taxed. Find out how file taxes and what income may be excluded from taxation. Below is a brief excerpt from this section:  

 Spain’s income tax burden is above the OECD member country average, especially for single workers and two-earner couples with two children. According to this same report, “the take-home pay of an average single worker, after tax and benefits, is 78.7% of their gross wage.”  

A person is considered a resident of Spain for tax purposes if:

  • He or she is present in Spain for more than 183 days in a calendar year

  • The person’s center of business and economic activities is in Spain

  • The person’s spouse and dependents usually reside in Spain

Residents of the country are taxed on worldwide income, while non-residents are taxed only on Spain-sourced income. Taxable income includes salaries, wages, dividends, interest and capital gains. Irregular income (such as unemployment benefits or severance pay) received for more than two years may also be subject to tax. Generally, individuals must file a tax declaration if their annual income exceeds 22,000 EUR from only one employer; and when it exceeds 12,000 EUR if the income originates from more than one source. First-time residents must also file, regardless of the amount of income earned.

This is just a brief sample of the extensive information in the GoinGlobal Spain Career Guide, which is carefully researched and regularly updated by local career experts.

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