Spain
Members of the family can choose to be taxed as a "unit" or on an individual basis. The tax bands are different depending on their taxable status. The rates of income tax vary from 0% to 56%.
Capital gains are taxed at various rates depending on the length of ownership of the asset.
Employees may deduct from their taxable income 5% of their gross employment income (up to a maximum limit) as employment related expenses, together with payments into private pension plans (up to limit).
The tax year end is 31 December and tax returns must be filed by the following June. There may be a divided tax year in the case of a marriage, legal separation or death.
The VAT rate varies from 4% (e.g. necessities), 7% (e.g. animals, food, water, medicines etc) to 16% (the standard rate).
Both employers and employees must make social security contributions of up to 30.8% and 6.4% respectively.
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This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
