Spanish Personal Income Tax calculator 2015

Posted on Posted in Publications, Tax

If you are thinking in moving into Spain or retire here, you may be want to know how much tax would you have to pay in Spain. We have prepared a spread sheet based calculator which will allow you to calculate the tax liability in Spain for 2015. Before you use it, a few notes will help you to use the calculator properly:

The sources of earnings are classified in the following categories:

  • Employment income
  • Self-employment income
  • Savings and other investment income, such interest, dividends, rental income and capital gains.

Employment related income accounts for the 80 % of the revenue of this tax. Employment related income includes all wages, salaries and perks received by an individual as compensation under a labor contract. Salaries are taxable regardless they are paid in cash or as non-cash payments, often referred as payments in kind or fringe benefits. Together with wages and salaries, all replacement earnings payments are taxable as employment related income, such as sick pay, maternity and paternity pays and the like.

One of the main taxable items under this category are the so-called deferred salaries. These are the earnings arising from a former job which are cashed upon reaching the pensionable age, such as Social Security retirement pensions, state pensions, widow’s pensions and benefits from pension funds schemes and some life insurance contracts.

Finally, the Law includes as employment related income a miscellaneous of items which in some cases have an unclear link to a current or previous job. Among them, there are Director’s fees, maintenance payments received from an ex-spouse and jobseeker’s allowance.

Savings include income such as dividends, interest and capital gains, but not rent from real estate. Rents are included in the general taxable base, so they are taxed at the normal tax brackets.