If you are living in Spain and earning a gross annual salary of €21,876, or €1,823 per month, the total amount of taxes and contributions that will be deducted from your salary is €4,056.
This means that your net income, or salary after tax, will be €17,820 per year, €1,485 per month, or €343 per week.
Simply enter your annual or monthly income into the salary calculator above to find out how taxes in Spain affect your income. You'll then get a breakdown of your total tax liability and take-home pay. The deductions used in the calculator assume you are not married and have no dependents. You may pay less if tax credits or other deductions apply.
For a gross annual income of €21,876, our tax calculator projects a tax liability of €338 per month, approximately 19% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings in Madrid, Spain.
|Social Security Contributions||1,389||116||27|
|Total Tax Due||4,056||338||78|
The average monthly gross salary in Spain is around €1,823, according to the most recent report on salaries compiled by The Adecco Group. This works out to an average annual salary of €21,876 before taxes, which translates to a take-home pay of approximately €1,485 per month, as estimated by our salary calculator.
The minimum wage in Spain is established by Royal Decree, and in 2023 it is set at €36 per day or €1,080 per month before tax for the majority of workers. Given that salaries in Spain are typically paid in 14 instalments per year, this equates to an annual gross salary of €15,120. If we run this number through our tax calculator for Spain, we get a monthly salary of around €1,035, after paying income tax and social security contributions.
Two exceptions are highlighted in the Royal Decree concerning the Spanish minimum wage. Domestic workers, who are usually paid by the hour, must be paid an hourly rate of at least €8.45. Contingent and temporary workers, defined as anyone with an employment contract of less than 120 days per year, enjoy a minimum pay of €51.15 per day before tax.
Spain is well-regarded in many aspects concerning quality of life for its residents, having the fourth-highest life expectancy of all countries that are part of the Organisation for Economic Co-operation and Development (OECD). Spain is the second most-visited country in the world, after France, therefore tourism is a major contributor to the national economy. Most tourists come from the United Kingdom, France, and Germany.
- Income Tax
- is a progressive tax, ranging from 13% to 53%, depending on the autonomous community. The standard personal allowance is €5,550 for individuals under 65 years old, who are not married and have no dependents. Spain uses a pay-as-you-earn tax system, where the employer withholds the employee's taxes and contributions from the gross pay, transferring the payment directly to the tax authorities on a monthly basis. The personal income tax is also called "Impuesto sobre la Renta de las Personas Físicas" or IRPF.
- Social Security Contributions
- are paid partly by the employee and partly by the employer. The standard rate for the employee is 6.35%, while the employer pays at least 29.90% of an employee's salary, depending on the occupation. Social security contributions in Spain have a minimum and maximum cap determined by the employee's level of studies. In order to give a good indication on the lowest take-home pay an employee can expect, our calculator assumes the highest minimum and maximum caps.
The information presented here is based on Spain's 2023 fiscal regulations. Please refer to the Spanish Tax Agency (Agencia Tributaria) website for more details.