The tax rate on the highest incomes in Spain is the fourth highest in Europe

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It ranks fourth in the continent with an overall rate of 54%. Spain is surpassed in this regard only by Denmark with 55.9%, France (55.4%) and Austria (55%). In El Economista, tax specialist Leonardo Neri of Montero Aramberu commented that this does not mean that all of these countries are tighter in fiscal policy. “While it is true that the marginal tax rate in neighboring countries is higher than that of Spain, the tax burden on income, especially capital, in Spain is higher than the current average in the twenty-seven European Union.”

Returning to the income tax (IRPF): comparison with the average of 45% on the European continent does not give Spain any advantage either, exceeding it by more than ten percentage points. Outside the Eurozone and the European Union, the UK also features a maximum tax rate of 45%.

The OECD comparison shows that the lowest profit margins are found in Latvia (31%), Slovakia (25%), the Czech Republic (23%), Estonia (20%), and 15% in Hungary.


In Spain, in some autonomous regions, more than 52% are taxed. This is the case in the region of Valencia where, due to the high regional part, the ratio of 54% is applied. The situation will not change in that region. Regional President Ximo Puig has announced changes to the income tax, but these changes are limited to shrinking brackets for incomes below €60,000 per year. So there will be no moderation in taxes on higher incomes.

Outside the Valencian Community, there are other regions with percentages equal to or greater than 50% on the bulk of the income tax. These are Asturias, Cantabria, Navarra, La Rioja and Catalonia.

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In this last autonomous region, known for decades with high tax rates, there will also be no changes in income, even those of the lowest levels expected in personal income tax.

two from Spain

According to El Economista, there are two types of Spain, particularly with regard to the treatment of high-income citizens living in the areas governed by PP. Less than 50% are Galicia, Castilla-La Mancha and Andalusia with 47%. Castilla y León by 46% and especially Madrid, which remained marginal with 45%.

Reducing income tax in rural areas

Based on the latest announcements about changes in regional fiscal policy, disparities are expected to continue to widen. Income taxes have been reduced in Asturias and the Canary Islands, but especially in rural areas at risk of declining population. A similar strategy is followed by Aragon, which is controlled by the Socialist Workers Party, for regions with demographic problems.

More general is the reduction by half a point in all the independent divisions of the IRPF that Madrid decided this year; Reducing the maximum rate from 48.2 to 47% in Andalusia or Galicia, and simplifying the tax structure from seven to five brackets.

Megan Vasquez

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