Employer Tax Contributions

Tax Type	Rate	Base
Social Security	~30.48% (general) + variable for accidents	Employee's gross salary (subject to minimum/maximum bases)
Unemployment Insurance	5.5% (employer)	Employee's salary
Professional Training	0.7% (employer)	Employee's gross salary
Wage Guarantee Fund (FOGASA)	0.2% (employer)	Employee's gross salary

Filing & Compliance

• Social Security contributions are due by the last calendar day of the following month.
• Income tax (IRPF) withholdings must be remitted by the 20th of the following month.
• Employer is responsible for registering workers with the social security system before or on the start date of activity.

In Spain, employees are subject to various tax deductions, primarily income tax and social security contributions, influenced by factors like income level, residency status, and specific deductions.

Income Tax (IRPF)

As of 2025, Spain's income tax (Impuesto sobre la Renta de las Personas Físicas or IRPF) follows a progressive system with rates and brackets updated for the year:

• Up to €12,450: 19%
• €12,451 to €20,200: 24%
• €20,201 to €35,200: 30%
• €35,201 to €60,000: 37%
• €60,001 to €300,000: 45%
• Over €300,000: 47%

Beckham Law

The Beckham Law offers a flat income tax rate of 24% for qualified foreign workers relocating to Spain for employment. This applies to Spanish-sourced income, potentially providing significant savings compared to standard progressive rates. Note that certain income types like inheritances, capital gains, and gifts sourced within Spain are excluded from Beckham Law benefits.

Tax Deductions and Allowances

Several deductions and allowances can reduce taxable income for residents:

• Personal Allowance: €5,550 (under 65), €6,700 (65+), €8,100 (75+).
• Child Allowance: €2,400 (first child), €2,700 (second), €4,000 (third), €4,500 (each subsequent).
• Dependent Relative Allowance: €1,150 (65+), €2,550 (75+).
• Maternity Allowance: €2,800 annually per child under three.
• Energy Efficiency Improvements: Deductions for home improvements related to energy efficiency are available until the end of 2025.
• Electric Vehicle Purchases: Deductions for purchasing electric vehicles and installing charging stations are extended through 2025.

Social Security Contributions

Social security contributions are mandatory for employees in Spain, with contributions split between employer and employee.

Employee Contributions

• Social Security: 4.83% (including MEI).
• Unemployment: 1.55%.
• Professional Training: 0.10%.
• Solidarity Contribution: 0.16% - 0.20% on earnings above €4,909.50 monthly.

Employer Contributions (Informative - not deducted from employee salary)

• General Contingencies: 23.60%
• Unemployment: 5.50%
• Professional Training: 0.70%
• Wage Guarantee Fund: 0.20%

The rates and thresholds for social security and certain income tax deductions (i.e., the solidarity contribution) are subject to annual revisions, therefore, it's best practice to validate these figures at the start of each year. It's important to be aware that these figures can vary.

Additional Considerations

• Tax Year: The Spanish tax year aligns with the calendar year, running from January 1st to December 31st.
• Tax Filing: Those with income from two or more payers exceeding €2,500 are obligated to file a tax return. Generally, the tax filing season in Spain occurs between April and June of the following year.

This information is current as of February 5, 2025. Tax laws and regulations can be subject to change. Consulting with a tax advisor is recommended for personalized guidance.