0 – 12,450    19%

12,450 – 20,200    24%

20,200 – 35,200    30%

35,200 – 60,000    37%

Over 60,000         45%

These rates are made up of equal part state rates and regional rates, and each

Autonomous Community can amend their local rates. Here in Islas Baleares, the

income tax rates range over 13 income tax bands from 19% to 47.5%. The top rate is

for income over €175,000.

The above rates only apply to general income (employment, pension, rental income,

etc). Savings income is taxed at different rates.

The 2016 rates are –

€ Tax rate

0 – 6,000          19%

6,000 – 50,000. 21%

Over 50,000      23%

Savings income covers interest, dividends, income derived from life assurance contracts, purchased annuity income and capital gains on the sale or transfer of assets.

Tax on capital gains are taxed at the savings tax rates.

Non-residents who earn any kind of Spanish income will pay tax at fixed rates of 19%

for EU residents and 24% for everyone else.