Changes in Spanish personal income tax (IRPF) for 2012-2013

By: Transfer Business Administration Services Spain

The Spanish tax agency has recently published its calculation programme for the withholding (income) tax for 2012 (Spanish). The tax increase decided by the government in December 2011 has obliged the institution to react fast, as the increase has to be applied already this month. 

The Spanish tax authorities explain that the new decree (Real Decreto - 30 de diciembre de 2011) establishes a complementary levy on top of the national part of the personal income tax (IRPF), the part that the autonomous regions charge has not changed. This results in an increase for all employees as of January 1st, 2012 till December 31st, 2013. The calculation involves an rise of 0,75% for all wages below 17.707,20€/year with an progressive increase of up to 7% for incomes of 300.000€/year.

The following table shows the impact for each income bracket.

If you need advice about your particular situation or those of your workers, please do not hesitate to contact us.