Spain’s personal income tax system — known as IRPF (Impuesto sobre la Renta de las Personas Físicas) — is progressive, meaning the tax rate increases as your income rises. Whether you are a resident, an expat, or someone planning to move to Spain, understanding how IRPF works can help you optimise your tax bill and avoid surprises.

This guide breaks down the tax brackets, general allowances, and most common deductions available to taxpayers in Spain.

Spanish Personal Income Tax Rates (IRPF)

Spain applies a combination of state and regional tax rates. While each autonomous community can adjust its own rates, the following state brackets serve as a reliable reference:

• 19% — income up to €12,450
• 24% — €12,450 to €20,200
• 30% — €20,200 to €35,200
• 37% — €35,200 to €60,000
• 45% — €60,000 to €300,000
• 47% — above €300,000

These rates apply to general income, including employment income, business income, pensions, and rental income.

If you want to explore how regions differ, you can check regional IRPF differences.

General Allowances (Mínimos Personales y Familiares)

Spain reduces your taxable income through a series of personal and family allowances. These allowances ensure that a basic level of income remains tax‑free.

Personal Allowance

• €5,550 — general allowance
• €6,700 — taxpayers over 65
• €8,100 — taxpayers over 75

This is one of the most important reductions, as it applies to almost everyone.

Child Allowances (Mínimo por Descendientes)

If children live with you and meet age/income requirements:

• €2,400 — first child
• €2,700 — second child
• €4,000 — third child
• €4,500 — fourth and subsequent children
• Additional €2,800 for each child under 3

Dependent Parent Allowances (Ascendientes)

For parents or grandparents living with you:

• €1,150 — over 65
• €2,550 — over 75

Common Deductions for Employees and Self‑Employed Workers

Spain offers several deductions that can reduce your taxable base or your final tax due.

Employment Income Deduction

Employees automatically receive a reduction based on their income level. This benefits low‑ and middle‑income earners.

Self‑Employed (Autónomos) Deductions

Autónomos can deduct a wide range of business‑related expenses, including:

• Office or home‑office costs
• Utilities and supplies
• Professional services
• Insurance
• Vehicle expenses (when justified)
• Social security contributions

Pension Plan Contributions

Up to €1,500 per year deductible (higher limits for company pension plans).

Donations to NGOs

• 80% deduction on the first €150 donated
• 35–40% on the remaining amount

Deductions for Housing

Mortgage Deduction (Homes Purchased Before 2013)

Taxpayers can deduct 15% of mortgage payments, up to €9,040 per year.

Rental Deductions

Some regions offer deductions for renting your main home, especially for young taxpayers. These vary by region.

Savings Income Tax Rates (Capital Gains, Dividends, Interest)

Savings income (rentas del ahorro) is taxed separately:

• 19% — up to €6,000
• 21% — €6,000 to €50,000
• 23% — €50,000 to €200,000
• 27% — €200,000 to €300,000
• 28% — above €300,000

This applies to capital gains, dividends, interest, crypto gains, and investment returns.

Key Takeaways

• Spain uses a progressive tax system with rates from 19% to 47%.
• Everyone receives a €5,550 personal allowance, with higher amounts for seniors.
• Families benefit from child and dependent allowances.
• Employees and autónomos can apply specific deductions.
• Savings income is taxed separately at 19%–28%.

Ready to optimise your Spanish tax return?

If you want personalised guidance, help with your IRPF filing, or a full review of your deductions, reach out today. I can assist you with Spanish tax return preparation, autónomo accounting, or international tax questions.

Let’s make your tax filing simple, accurate, and stress‑free.