Tax Return

Tax in Spain vs. UK

Tax in Spain vs. UK

Spain is a relatively less expensive place to live compared to European standards. For instance, the cost of living is high in the UK, whereas the cost of living in Spain can be seen in the lower cost of renting and property prices compared to the UK.


It also implies that individuals earn slightly less in Spain than in the UK. But If you are living in Spain, you will observe that you have more in your pocket at the end of the day as the general expenses are less expensive. 

So, how much income tax do you pay in Spain? Keep reading this article to know. 

How much tax do you pay in Spain? 

You have to pay tax for everything in Spain. Tax in Spain works slightly differently than in the UK, so your tax may be slightly higher. However, there are various allowances that you can consider to reduce the overall tax to pay. 

The taxes in Spain will depend on your residential status. Both residents and non-residents are liable to pay taxes here. Taxes in Spain are complicated, and you can be subject to penalties if you miss a deadline. 

Income tax in Spain 

Most Spanish residents must complete a resident tax declaration annually before the end of June. Tax payment is retrospective in Spain; your declaration will also cover the previous year’s bill. 

Take note that only some are expected to make a resident tax declaration. 

  • You are not required to make a declaration if you have only one pension which is worth less than €14,000
  • You must file a declaration if you have other income, like interest from savings or rental income. 

However, you are advised to make a declaration even if you do not need to, as it will formally record you as a fiscal resident in Spain. 

You can take the help of a Spanish tax calculator to know how much income tax you pay in Spain. 


Bottom line 

In conclusion, tax in Spain works slightly differently from that in the UK. One needs to pay tax for everything, and the taxing system here is a bit complex. Therefore, you should consult an accountant if you have queries regarding taxation in Spain. 

We provide the best accounting services; you can contact us if you need any help regarding tax or income tax in Spain or the UK.