Income
Tax
Company Tax
Rates And Allowances
Property Related Tax
| Income Tax Rates for the year ended 31st December 2012 | ||
| From (euro) | To (euro) | Income tax % |
| 0 | 17,707 | 24.75 |
| 17,707 | 33,007 | 30 |
| 33,007 | 53,407 | 40 |
| 53,407 | 120,000 |
47 |
| 120,000 |
175,000 |
49 |
| 175,000 |
300,000 |
51 |
| 300,000 + |
52 |
|
Capital
gains for
individuals
The rate of taxation is 19%.
Company Tax Rates
Please see our company tax page.
Regime for small companies (turnover less than 8m
euro)
Free
amortisations:
Investments which increase number of
personnel
Low-value assets (up to 601 Euros per asset, 12,020 Euros in
total per year)
Increased amortisations:
New fixed assets, maximum depreciation multiplied by 2.
Bad debt allowance:
1% of trade debtors
Permanent rollover relief:
For reinvestment in same class of asset, 1 year before to 3 years after disposal.
Wealth Tax was abolished in Spain on 1st January 2009.
| Allowable Depreciation Straight line method can be used for any depreciable asset. Reducing balance method can be used for new tangible assets with estimated useful life of at least 3 years |
||
| Maximum straight Line rate % | Maximum Useful Life years | |
| Buildings and other constructions | 3 | 68 |
| Tools | 30 | 8 |
| Motor vehicles | 16 | 14 |
| Fixtures & Fittings / Office Equipment | 10 | 20 |
| Machinery | 12 | 18 |
| Computers | 26 | 10 |
| Depreciation must be recorded in accounts
to be deductible. And within above limits, except: Accelerated allowance may be granted for new assets located in Spain, where it can be demonstrated that actual depreciation took place. |
||
Other significant taxes
Tax on holding companies of Spanish real
estate resident in non-treaty countries:
Penalty tax at 3% Cadastral value
| Capital Gains Indexation Allowances for tangible fixed assets | ||
| Date Of Purchase | Companies | Individuals |
| Before 1984 | 2.2719 | Reduction in indexed gain of 11.1% for each year or part year owned before 31/12/96 (applies to non-residents as well) |
| 1984 | 2.0630 |
|
| 1985 | 1.9052 |
|
| 1986 | 1.7937 |
|
| 1987 | 1.7087 |
|
| 1988 | 1.6324 |
|
| 1989 | 1.5612 |
|
| 1990 | 1.5001 |
|
| 1991 | 1.4488 | |
| 1992 | 1.4167 | |
| 1993 | 1.3982 | |
| 1994 | 1.3730 | 1.2908 and previous years |
| 1995 | 1.3180 | 1.3637 |
| 1996 | 1.2553 | 1.3170 |
| 1997 | 1.2273 | 1.2908 |
| 1998 | 1.2114 | 1.2657 |
| 1999 | 1.2030 | 1.2430 |
| 2000 | 1.1969 | 1.2191 |
| 2001 | 1.1722 | 1.1951 |
| 2002 | 1.1580 | 1.1717 |
| 2003 | 1.1385 | 1.1488 |
| 2004 | 1.1276 | 1.1262 |
| 2005 | 1.1127 | 1.1041 |
| 2006 | 1.0908 | 1.0825 |
| 2007 | 1.0674 | 1.0613 |
| 2008 |
1.0343 |
1.0405 |
| 2009 |
1.0120 |
1.0201 |
| 2010 |
1.0000 |
1.0100 |
| 2011 |
1.0000 |
1.0000 |
Income Tax Declaration threshold
If either of the limits below are exceeded, the taxpayer must file an
annual tax return.
- Income from employment 22,000 Euros.
- Capital gains and savings income 1,600 Euros.
- Rental income 1,000 Euros.
VAT
(IVA)
Standard rate (Tipo
General):
18%
Reduced rate (Tipo
Reducido)
8%
Super-reduced rate (Tipo
Superreducido)
4%
Payment is quarterly, in general within 20 days of the month end.
A monthly regime applies for businesses with turnover above 6 million
Euros.
There is a pro-rated partially exempt calculation for
businesses making both taxable and exempt supplies.
Exemptions
Public services
Financial transactions
Public postal services
Insurance Transactions
Medical and health service
Conveyance of land designated as not for housing
Welfare
Resale of property
Education
Private lettings
Sport
Exemptions for internal transactions
Certain cultural activities
Exemptions for exports
Deductibility of VAT
VAT incurred in relation to taxable goods and services is recoverable
Non-recoverable VAT
50% of motor vehicle cost.
Travelling expenses which are not deductible for corporation or income
tax purposes.
Special Systems
If turnover is less than 200,000 Euros the sistema de estimacion objetiva may be used.
Agriculture, stock breeding and fishing
Second-hand goods, art objects and antiques
Travel agents
Retail trade - recargo de equivalencia
- net VAT per model paid to suppliers, not Hacienda
| VAT on property | ||
| New homes |
VAT AJD (stamp duty) |
|
| Second hand homes | ITP (property transfer tax) and AJD |
|
| Commercial premises & plots Villa plots from promoter |
VAT AJD |
|
| ITP/ AJD rates can vary according to area (Comunidad Autonomo). | ||
These notes are intended as a guideline and should not be used as a
substitute for proper professional advice. Please contact us and we will
be happy to assist you.
If you are looking for advice on tax rates Spain, we can be of assistance.