For the tax year 2015, the tax rates applicable to the Personal Income Tax are the ones shown below. They may change depending on the residence of the tax payer within the Spanish territory because the regions have the right to increase or decrease the table within certain limits. However, as a general rule, they do not normally depart very much from the standard table shown below.
The main difference with the tax rates in force for 2014 is that the brackets have been reduced by one and that the rates have been reduced in all the brackets, although not lineally. But do not make mistakes: the overall tax burden remains unchanged because the taxable base has been broadened simultaneously by disallowing the deduction of certain items.
Note that this tax rates only apply to the “general taxable base” which is basically composed of earned income, either as an employed individual or as a self-employed (“autonomo”).
Unearned income such as savings and other investment income – interest, dividends, and capital gains – is included in other basket and taxed at other tax rates:
Two important measures is that short term capital gains (less than one year) will be included as from January 2015 in the saving basket. Therefore they would be taxed under the reduced tax rate scheme. On the contrary, income from rented properties will remain included in the general basket and taxed more heavily than other investment income. This fact is somehow offset by the fact the rent from accommodation properties have a 50 % relief, thus lowering the overall tax burden.
For more information, please contact Emilio Alvarez