IRPF(Impuesto sobre la Renta de las Personas Físicas) is a direct tax applied to Spanish tax residents on income generated in Spain, but also on worldwide income. In other words, regardless of where the income comes from (Spain or abroad), the tax applies to all the earnings of a person living in Spain permanently or for an extended period. The system is progressive, meaning that the tax rate increases with income.

Persons concerned by IRPF :

• Spanish tax residents, i.e. anyone who lives in Spain for more than 183 days a year (non-consecutive) or has economic interests in Spain.
• Family: spouses and minor children resident in Spain can also be taken into account when determining tax residency.

What income is taxable?

The following incomes are subject to IRPF:

1. Salaries.
2. Income from self-employed activities (liberal professions or freelance).
3. Income from assets (rental income, capital gains on real estate or securities, but also bank interest or dividends, for example).
4. Pensions: earnings from pensions (including those paid from abroad) are subject to IRPF.
5. Capital gains, of course, such as the sale of assets or shares.

How is IRPF calculated?

IRPF is calculated on income after deductions and exemptions. Our experts have listed the progressive scale for 2024.

What deductions can be made?

• Social security contributions.
• Family expenses (dependent children, dependent persons, reductions for large families).
• Various investments in principal residence.
• Charitable donations.
• Business expenses (check with a specialist lawyer to see if this applies to you).

How to declare and pay IRPF

1. Fill in the official form Modelo 100 via the Spanish tax portal(Agencia Tributaria).
2. Income earned on the platform must be declared between April and June of the year following the fiscal year.
3. Our advice: consider making quarterly prepayments to avoid a large tax bill at the end of the year.

⚠️ Risk of non-compliance with tax obligations

• Interest in the event of late payment.
• Increased risk of tax audit by Spanish authorities.

Contact our teams for more information on the subject or to be directed to trusted professionals.

FAQ : Personal income tax (IRPF)

Do I have to declare my foreign income?

Yes, if you are a tax resident in Spain, you must declare your worldwide income.

If I still have ties with my country, am I subject to double taxation?

Thanks to bilateral tax treaties signed by Spain with several countries, you can avoid double taxation in 46 countries. These include European partners such as Germany, France, Italy, the UK, Belgium, the Netherlands and Switzerland, as well as Argentina, Chile, Brazil, Mexico and Peru. Countries such as the USA, Canada, Australia, and many Asian countries such as China, India, Japan and South Korea are also covered. The United Arab Emirates and Scandinavian countries such as Sweden and Norway also benefit from these agreements.

What is the IRPF scale?

There are 6 income tax brackets:

• Up to €12,450: 19%.
• From €12,450 to €20,200: 24%.
• From €20,200 to €35,200: 30%.
• From €35,200 to €60,000: 37%.
• From €60,000 to €300,000: 45%.
• + over €300,000: 47%.

Source 

Agencia Tributaria