Employment taxation
Whether you're an employee or self-employed, we help you understand and meet your tax obligations in Spain.
Progressive rates combining a state scale and a regional one: the top marginal rate ranges from ≈45% in Madrid up to 54% in the Valencian Community, depending on residence. Annual tax filings are required when income surpasses specified thresholds. The Spanish tax year runs January through December.
Of gross salary, for pensions, healthcare and unemployment, including the worker's share of the Intergenerational Equity Mechanism (MEI).
Paid by employers on behalf of workers. The MEI, in force since 2023, rises gradually each year (0.9% in 2026, split between employer and employee).
Newly arrived workers may qualify for a special flat-rate regime, taxed at 24% on Spanish-source income up to €600,000, for a period of six years. See the Beckham Law →
Self-employed individuals face the same progressive rate structure as employees, via quarterly payments.
Quarterly VAT returns filed using form 303, at the standard rate.
Since 2023, self-employed contributions are set across 15 real net-income brackets rather than a flat fee: the minimum monthly payment ranges from ≈€205 (lower income) to ≈€607 (higher income). Newly self-employed workers can access a flat €80/month rate during their first year.
Individuals become tax residents after spending more than 183 days annually in Spain, or when their main economic interests are based in Spain.
We help you understand your tax position from day one, whether you're an employee, self-employed or an expatriate.