{"id":14848,"date":"2018-01-05T13:00:54","date_gmt":"2018-01-05T12:00:54","guid":{"rendered":"https:\/\/pibgroupiberia.com\/?p=5185"},"modified":"2025-05-23T10:45:23","modified_gmt":"2025-05-23T08:45:23","slug":"the-key-data-on-personal-income-tax-in-spain-who-contributes-the-most","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/blog\/los-datos-clave-sobre-el-irpf-en-espana-quien-aporta-mas\/","title":{"rendered":"The key facts about personal income tax in Spain: who contributes the most?"},"content":{"rendered":"<p>What the Treasury gets from the <strong>Personal income tax is the most important tax of all.<\/strong>, even more than VAT or Corporate Tax (as it is almost 40% of its revenues). Let's see what was the collection in 2016 and 2017, which will help the State to meet all the budgeted expenditures.<\/p>\n<h2>The trend in personal income tax in Spain<\/h2>\n<p>Recently, in the last few months if not the last two years, there has been talk of positive data on employment. There are figures for growth in Social Security registrations and a reduction in unemployment, which is always a great thing.<\/p>\n<p>The fact that cannot be overlooked, however, is that <strong>the employment generated is often precarious<\/strong>, This leads to lower tax and contribution receipts. Now on to the key figures, let's take a look.<br \/>\nIt is true that more personal income tax is being collected year by year, but not at the expected rate:<\/p>\n<ul>\n<li><strong>2016<\/strong>: the <strong>75,432 million euros in personal income tax<\/strong> (0.1% above the previous year, but the budget for that year was a 4.3% increase)... did not meet forecasts.<\/li>\n<li><strong>2017<\/strong>The increase in revenue was estimated to be 7.7% more than in 2016, but at mid-year the increase was 3.2%, not even half of what was budgeted.<em> (July 2018 revision: closed collection figure was 77.038 billion)<\/em><\/li>\n<\/ul>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-5186\" src=\"\/wp-content\/uploads\/2017\/12\/calculadora-impuestos.jpg\" alt=\"The tax and income tax calculator\" width=\"951\" height=\"560\" \/><\/p>\n<h2>The numbers that really matter<\/h2>\n<p>Let's see how personal income tax is distributed according to the salaries of Spanish citizens:<\/p>\n<ul>\n<li><strong>More from 50%<\/strong> of taxpayers are in the<strong> 12.000-60.000 \u20ac bracket<\/strong> of annual income. That's almost 11 million people<\/li>\n<li>By<strong> under \u20ac12,000<\/strong>, As we said, there are more Spaniards than before the crisis (about 8% more), in total: more than 7 million.<\/li>\n<li>The bulk of the revenue, however, comes from the upper classes: the <strong>3'5% of the citizens' money allows to collect about 40% of the total revenue.<\/strong> by the IRPF... which is soon to be said.<\/li>\n<\/ul>\n<p>These are certainly worrying figures, especially with regard to the generation of precarious employment and the concentration of wealth in the hands of a few.<\/p>\n<h2>Progressivity of the tax, the key to it all<\/h2>\n<p>Personal income tax has been conceived as one of the keys to the Welfare State, as it aims to ensure that those who earn less are taxed less (and at a lower average rate) than those who earn more (who are taxed at a higher rate).<\/p>\n<p>Because of this progressivity, it is true that <strong>high incomes look for ways to minimise taxation<\/strong> The government is promoting measures to this end. These have been reduced over the years, which is why citizens have complained a great deal, as have tax advisors, who see the inconsistency of these measures, as they are a brake on the economy, reducing the movement of money.<\/p>\n<p>Examples are:<\/p>\n<ol>\n<li>the elimination of the mortgage repayment tax credit for several years now (for new hires), or<\/li>\n<li>the reduction of the maximum contribution in the pension plan (limited from January 2021 to \u20ac2,000 per year).<\/li>\n<\/ol>\n<p>If you want to find out about the best <a href=\"https:\/\/pibgroupiberia.com\/en\/individuals\/insurance-solutions-for-individuals\/savings-insurance\/\">pension schemes<\/a> In terms of return per contribution, we have those of the best fund manager for the month of December, along with many others.<\/p>","protected":false},"excerpt":{"rendered":"<p>Personal income taxation has changed over the years. Let's see how<\/p>","protected":false},"author":14,"featured_media":14849,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[16],"tags":[206],"class_list":["post-14848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-particulares","tag-ppa"],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/14848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/comments?post=14848"}],"version-history":[{"count":0,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/14848\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/14849"}],"wp:attachment":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=14848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=14848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=14848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}