Home / Publications / Tax Connect Flash | Spain: relevant tax changes -...

Tax Connect Flash | Spain: relevant tax changes - immediate application from 1 January 2012

The Official State Gazette (BOE) of 31 December 2011 saw the publishing of Royal Decree Act 20/2011, on urgent budgetary, taxation and financial measures to combat the public deficit, to come into force on 1 January 2012. In general, this Royal Decree Act includes applicable temporary amendments in tax legislation, namely:

Personal Income Tax

During fiscal years 2012 and 2013, the current progressive tax scales are increased on all the trenches.

  • This change entails an increase in the minimal marginal rate, with respect to work income, professional income, real estate income, among others, from 20% to 24.75%, and of the top rate up to 52% (prior top rate was fixed at 45%).
  • In turn, taxation on capital gains and earnings from investment capital has risen to 21% (up to 6,000 euros); 25% (between 6,000.01 euros and 24,000 euros); and 27% (thereinafter). Previously, tax rates were 19% up to 6,000 euros and 21% thereinafter.

Non-residents Income Tax

A. Tax rates

From 1 January 2012 until 31 December 2013, the following tax rates will see an increase:

  • The general rate applicable to earnings of non-residents without a permanent establishment (PE) in Spain has increased from 24% to 24.75%.
  • The tax rate for dividends, interest and capital gains earned by non-residents without a PE in Spain has risen from 19% to 21%.
  • The complementary levy applicable to foreign transmissions of earnings by PEs in Spain to their headquarters has grown from 19% to 21%.

B. Withholding tax rate

Please also bear in mind that the changes detailed above with respect to tax rates equally and directly affect withholding tax rates applicable to income paid to non-residents in Spain that are subject to withholding tax.


Gonzalo Oliete Senior Associate - CMS Albiñana & Suárez de Lezo E [email protected]

Joaquín de la Cuadra Associate - CMS Albiñana & Suárez de Lezo E [email protected]

Diego de Miguel Associate - CMS Albiñana & Suárez de Lezo E [email protected]


Gonzalo Oliete Benedito