Invest in Catalonia
Tax system
Corporate Income Tax (IS) charged on income received by companies. The general rate is 30% (25% for SMEs). The tax rate is noticeably reduced when certain legally established tax benefits, such as those affecting R&D and innovation are applied.
Personal Income Tax (IRPF) charged on the available income of individuals according to a progressive rate scale ranging from 24% to 43%.
- between 5,050 and 17,360 Euros, 24%
- between 17,360 and 32,360 Euros, 28%
- between 32,360 and 52,360 Euros, 37%
- 52,360 Euros and above, 43%
Expatriate workers can choose between this general tax system or the non-resident tax system (IRNR) at the fixed rate of 24% for a maximum of 6 years for a maximum annual income of 600,000 Euros. Another benefit should they choose this system is that income generated in other countries is not subject to the tax on this Spanish income.
The following conditions must be met to be able to choose the IRNR:
- Moving to Catalonia must be a consequence of an employment contract.
- Not having lived legally in Spain during the last 10 years.
- The work must be undertaken for a company that is resident in Spain or a permanent establishment of a non-resident company in Spain.
Value Added Tax (VAT) applies to consumption. Three different rates are applied: 4%, 8% or 18%.
Property Transfer Tax and Stamp Duty (ITP-AJD) applies to transfers between non-entrepreneurs and also to certain real property transactions. For some forms of property acquisition, the rate applied is 7% and for the incorporation of a company, the rate is 1%.
Town Councils charge various local taxes for economic activity.
