No approved tax rates for 2019 yet ….

Normally by the end of the year in Spain, the annual budget would be published which includes the tax rates for the following year. However due to the political impasse in Spain, there will be no approved budget until next January at the earliest.  The minority Socialist Party government of Pedro Sanchez needs at least the support of the left-wing Podemos party, led by Pablo Iglesias  to pass the budget. The leaders of the two parties have agreed the budget in principle but it needs to be approved by Congress, and this will not be until January. So residents of Spain will go into the New Year not knowing what tax they will be paying on their income ….

The key tax-related points on the proposal are:

Income tax

Tax rate increase of 2% for income over 130,000 Euros ; tax rate increase of 4% for income over 300,000 Euros

Capital gains tax

Tax rate increase of 4% for capital gains over 140,000 Euros

Company tax

Decrease in the main company tax rate from 25% to 23%.