Country Guides

Taxes in Spain

Employers in Spain contribute approximately 32.5% of an employee’s gross salary to the Social Security Treasury (Tesorería General de la Seguridad Social – TGSS). These contributions cover healthcare, pensions, unemployment, disability, training, and other protections.

The maximum monthly contribution base in 2025 is €4,909.50.

Employer Social Security contribution

Contribution: Common contingencies

Contribution amount: 23.60%

Contribution: Unemployment (permanent contracts)

Contribution amount: 5.50%

Contribution: FOGASA (Wage Guarantee Fund)

Contribution amount: 0.20%

Contribution: Training

Contribution amount: 0.60%

Contribution: Intergenerational Equity Mechanism (MEI)

Contribution amount: 0.67%

Contribution: Occupational accident/illness

Contribution amount: 0.90% - 8.50%

Contribution: Solidarity quota (above maximum contribution base)

Contribution amount: 0.92% / 1% / 1.17%

Employees contribute 6.48% of gross salary to Social Security contributions made to TGSS, in addition to paying income tax (IRPF). Their contributions are withheld directly from wages and remitted by the employer.

Income tax

Employment income is subject to Personal Income Tax (IRPF – Impuesto sobre la Renta de las Personas Físicas). This is a progressive system, with both state and regional rates, where the tax rate increases as taxable income rises.

Each autonomous community sets its own regional rates, so the total rate varies by place of residence.

Income tax

Gross income: €0 - €12,450

Tax rate: 19%

Gross income: €12,451 - €20,200

Tax rate: 24%

Gross income: €20,201 - €35,200

Tax rate: 30%

Gross income: €35,201 - €60,000

Tax rate: 37%

Gross income: €60,001- €300,000

Tax rate: 45%

Gross income: Above €300,000

Tax rate: 47%

The employer must apply monthly withholdings, calculated according to annual gross salary, contract duration, and the employee’s personal and family situation (marital status, children, dependants, disability, etc). Withholdings are advance payments credited against the annual income tax return.

Employee Social Security contribution

Contribution: Common contingencies

Contribution amount: 4.70%

Contribution: Unemployment (permanent contracts)

Contribution amount: 1.55%

Contribution: Training

Contribution amount: 0.10%

Contribution: Intergenerational Equity Mechanism (MEI)

Contribution amount: 0.13%

Contribution: Solidarity quota (above maximum contribution base)

Contribution amount: 0.92% / 1% / 1.17%

Tax rebates

  • Low-income rebate: This rebate is available for individuals earning under €14,000, phased out at €21,000.
  • Family and dependent rebates: Additional allowances for children, dependants, and disability.

Tax thresholds

  • No income tax is due if annual earnings are below €5,500.

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