Do you live in Spain and are you looking to find out more about the ins and outs of taxation on savings? From Welex, your guide and tax advisor in this country, we are pleased to outline the different tax rates that are levied on the fruit of your efforts and financial foresight.

 

Savings taxes on individuals in Spain

 

The rates of taxation on savings in Spain vary according to the nature of the capital held and the jurisdiction concerned. At a national level, the Spanish Personal Income Tax (IRPF) establishes specific categories for the net base of savings, as well as for certain income from movable capital and capital gains.

The taxation of dividends in Spain for individuals is regulated on the basis of their classification as income from movable capital, which is amalgamated in the savings tax base and subject to the corresponding personal income taxation, with the relevant exceptions and limitations that may arise from particular legislation or international agreements.

The spectrum of savings income in Spain is split into two main categories:

  1. Income from movable capital in Spain: this comprises dividends from shares and participations, capital gains derived from the transfer of transferable securities, interest from bank accounts, among others. If the balance is positive, it is added to the tax base; if it is negative, it can be offset with up to 25% of the positive balance of capital gains and losses for a maximum of 4 years, provided that there are losses to be offset.
  2. Capital gains and losses: these derive from the transfer of real estate in Spain, among other sources.

To find out more about such capital gains and losses, you can access to further information in our following articles:

– https://www.welex.es/capital-gain-in-spain-deduction-for-major-works-in-spain/

– https://www.welex.es/spanish-capital-gains-tax-sale-property-spain/

The taxation of your savings tax base will result from the combination of both items. Remember that you can offset both items by up to 25%, which will allow you to pay a lower amount of tax. Once added and/or compensated, a percentage ranging from 19% to 28% will be applied, in accordance with the tax tables in force:

– From 0 to 6.000€: 19%

– From 6.000,01€ to 50.000€: 21%.

– From 50.000,01€ to 200.000€: 23%.

– From 200.000,01€ to 300.000€: 27%.

– More than 300.000,01€: 28%.

Can the autonomous communities in Spain determine the rates of taxation on savings?

The Autonomous Communities, including Andalusia, do not have the power to alter these tax rates, which means that the applicable scale is uniform throughout the national territory.

 

Please do not hesitate to visit us in our offices or contact our firm of tax advisors in Spain for any tax-related queries you may have.