Income tax rates and regionsArticle 3 of 7 · 4 min read
How income tax differs between Spanish regions
Spanish income tax is partly set by your region, so the same salary can be taxed differently depending on where you live. This page explains which region counts for you, what regions can change, and where to find your region's figures.
Key rules
- Region: Your residence on 31 December decides which regional scale and deductions apply for the whole year.
- Regional scale: Each region sets its own scale for the regional part of your income tax, so rates differ.
- Savings income: Regions cannot change the rates on savings income.
- Deductions: Regional deductions usually have income or age conditions and are not aimed at newcomers.
Your region of residence sets part of your income tax
Income tax in Spain has two parts: a state part and a regional part. The regions set their own scale for the regional part and create their own deductions. The region you live in decides which ones apply to you. The comparison below shows major regions side by side.
Which region counts
Your residence on 31 December decides which regional scale and deductions apply for the whole year. If you move region mid-year, you still use only the region where you live on 31 December.
Your region of residence is normally where you spent the most days in the calendar year. Short absences count as time in that region. If that cannot be worked out, the region where you earn most of your income applies. After that, the residence you declared applies.
What regions can change
Most regions can:
- set their own scale of rates for the regional part of your general income (salary, for example);
- create deductions that reduce the regional tax you pay;
- set personal and family allowances for the regional part, within limits.
They cannot change the rates on savings income, such as interest. They have little say over other items. The Basque Country and Navarre run their own separate systems, so this page does not cover them. Ask the tax office of those regions about their rules.
How much the burden differs
Rates differ from region to region. Madrid generally has the lowest rates. Catalonia and Valencia have a higher top regional rate. Andalusia has a different bracket structure. State and regional rates combined usually top out in the mid-40s to high-40s percent. Check current brackets for your region before you compare, because they change.
Are regional deductions useful for you?
Probably only a little at first. Regions offer deductions for family, birth or adoption, childcare, rent, young people, disability, donations, education and rural residence. Madrid has deductions for school fees and for rent for young people. Catalonia has rent and child-related ones. Valencia, Andalusia and Galicia have family and housing ones.
Most have income limits, age limits or other conditions. None is aimed at newcomers specifically. Read the conditions before you count on one.
Where to find your region's rules
The national tax agency's website publishes the annual income tax manual. Its regional chapter lists each region's scale and deductions. Search the tax agency's income tax pages for the current year. Each region also publishes its own on its regional tax portal. Madrid, Catalonia, Valencia and Andalusia all have one.
The questions below cover the rest.
Regional income tax side by side for major regions
Madrid generally has the lowest regional income tax rates of the four regions with the most foreign residents. Catalonia and the Valencian Community have a higher top regional rate.
| Region | Regional rates on general income | Notable deductions |
|---|---|---|
| Madrid | Generally the lowest rates | School fees; rent for young people |
| Catalonia | Different bracket structure; higher top regional rate | Rent; child-related deductions |
| Valencian Community | Different bracket structure; higher top regional rate | Family and housing |
| Andalusia | Different bracket structure | Family and housing |
How to use this table
- Each region sets its own brackets, so the same salary can produce a different bill in each one. The table shows the pattern, not exact figures.
- The brackets and deductions can change every year. Before you choose where to live, get the current brackets from the region's own tax agency or the national tax agency.
- Most deductions have income limits, age limits or other conditions. They are not aimed at newcomers, so you may not qualify in your first year.
- Other regional deductions cover childcare, birth or adoption, disability, donations, education and rural residence. Galicia also offers family and housing deductions.
- The Canary Islands and the Balearic Islands also have large foreign communities. Check their regional scales on their own tax agency sites.
This comparison covers regions under the common regime. Check the rules separately for a region outside it.
Frequently asked questions
Which region counts if I lived in two regions during the year?
The region where you spent the most days in the calendar year counts as your region, and short absences still count as days there. If that cannot be worked out, the region where most of your income comes from applies, then the residence you declared.
What can a region change about my income tax?
A region in the common regime can set its own scale for the regional part of your general income, create deductions, and set the personal and family minimums for the regional part within limits.
Are regional deductions useful for a newcomer?
Some can be, but most are not aimed at newcomers. Regions offer deductions for children, childcare, rent, young people, disability, donations, education and rural residence, and most have income or age limits.
Where can I find my region's current scale and deductions?
Look at the Renta manual on the AEAT website, Spain's tax agency. It has a regional chapter for each community for the current year. Your region's own tax agency portal also publishes its brackets and deductions.
More in Income tax rates and regions
- How Spanish income tax is calculated from income to final bill
- General and savings income and which of yours goes where
- Income tax in the Basque Country and Navarre (foral regimes)
- Special tax rules in the Canary Islands, Ceuta and Melilla
- Typical effective tax rates at different incomes
- Why your payroll withholding differs from what you owe
Need certainty before you act?
For important relocation decisions, speak with a qualified human specialist.
Always verify important information with the relevant official authority or a qualified adviser before acting. This website uses large language models together with various public data sources, official government documents and other established sources. Due to the amount of data on this website, some information might be wrong. Information may also be incomplete or outdated.