What is personal income tax (IRPF) and how is it calculated in Spain?

Subject:  Law and Political Science
A calculator, a pen and a piece of paper

This practical guide will help to clear up the most frequently asked questions about Spanish personal income tax (IRPF).

If I'm given a pay rise, will I actually make less because of the increased income tax? Why have they changed the percentage of taxes being taken from my monthly salary? What deductions do I have a right to? What would the system be like if higher incomes were taxed more heavily?

We have put together a list of resources that are sure to help you answer any of the questions you might have about Spanish personal income tax (IRPF). In our guide you will find helpful information about current tax legislation, the different tax bands, possible deductions, withholdings and how they are calculated by the Spanish tax authority (Agencia Tributaria), and how to avoid tax fraud.

Don't let personal income tax get the best of you

The guide contains resources in a range of formats, from websites to videos and news items, all of which will help to make preparing your income tax returns a breeze.

  • You can start by looking over the introductory definitions of personal income tax to get a better idea of what it is, what it is used for and what exceptions it allows. We have also grouped together information about the legislation governing personal income tax; namely, two exhaustive manuals from one of the Library's platforms specializing in law.
  • To understand how personal income tax is calculated, we have gathered web pages from Spain's Agencia Tributaria that offer helpful facts for taxpayers and an up-to-date table of tax bands for each autonomous community. Check out this page as well if you are looking to learn more about what reductions and deductions you can apply to your personal income tax withholdings.
  • Do you know the differences between tax fraud, tax evasion and tax avoidance? Learn about them here and discover how to lower your taxes.
  • Finally, if you would like to stay up to date on any tax changes, you can visit the suggested websites, which contain helpful financial information.

The practical guide