Personal Income Tax in Spain

On 1 January 2015, became effective the new Spanish tax reforme measure which modifies the tax regime for individuals, companies and non-residents tax payers.

PERSONAL INCOME TAX

The number of income bands has been reduced from seven to five, however deductions and allowances have icreased, specially for those with low income who were exempt. It is important to pay attention to the fact that in Spain, the final tax will depend on the tax scale approved by the autonomous communities.

Concept	2014	2015	2016 onwards
Interests, dividends and capital gains	21-27%	20-24%	19-23%
Other income	24.75-54%	20-47%	19-45%

Not only the 100% deduction for rental income from tenants under age 35 has been withdrawn, being all landlords taxed on 40% of net rent income, also  the tax exemption for the first 1.500 euros of dividend income has been withdrawn.

NON-RESIDENT INCOME TAX

The general tax rate has been reduced from 24,75 % to 24 % and 20%, 19% in the following taxable years On the other hand, the tax rate for capital gains and dividends has been reduced from 21% to 20% and to 19% in 2016.