Spanish Income Tax Guide 2025/26 — Impuesto sobre la Renta
Spain's Impuesto sobre la Renta de las Personas Físicas (IRPF) is progressive with marginal rates reaching 47% at highest brackets. Combined with municipal and regional taxes, and mandatory social contributions (cotizaciones), effective rates can exceed 50%. Strategic income deferral, pension contributions, and deduction optimization are critical for tax planning.
IRPF Brackets 2025/26
| Bracket | Rate |
|---|---|
| €0 – €12,450 | 19% |
| €12,450 – €20,200 | 24% |
| €20,200 – €35,200 | 30% |
| €35,200 – €60,000 | 37% |
| €60,000 – €300,000 | 45% |
| €300,000+ | 47% |
Plus: Solidarity tax (cuota adicional) of up to 3% on income > €300,000.
Social Security Contributions (Cotizaciones Sociales)
Employees pay:
- Contingencias comunes (pensions): 6.5%
- Desempleo (unemployment): 1.55%
- Formación profesional: 0.1%
- Accidentes (accidents): 0.65–1.1%
- FOGASA: 0.1%
- Total: ~8–9% of salary
Pension & Retirement
- Aportaciones voluntarias: Up to €6,000/year (deductible)
- Plan de pensiones: Tax-deductible private pensions
- Contributed social security: Builds Regimen General entitlement
Year-End Planning
- Maximize pension contributions before 31 December
- Harvest losses before year-end
- File Declaración de la Renta (tax return) by 30 June
Use our Spanish Income Tax Calculator to estimate your 2025/26 tax bill. Consult a gestoría (tax advisor) for complex situations.