Spanish Income Tax Benefits For Seniors
Today we will break down the Spanish Personal Income Tax (IRPF) for senior residents. We will present a brief summary of the IRPF and the existing tax benefits for individuals over 65 years old and/or with disabilities. This a summary of some perks that are important for you.
Tax Residence
Let’s start with preliminary considerations. Who is considered a tax resident in Spain? A taxpayer is a tax resident if they meet any of the following criteria:
- They stay in Spanish territory for more than 183 days a year.
- Their main center of economic interests is in Spain.
Initially, a person is a resident if their legally unseparated spouse and dependent minor children reside in Spain.
What does this mean?
It means you pay taxes on your worldwide income, but international agreements prevent double taxation. You can check out our video on these conventions.
Basic Tax Declaration
We will follow this basic declaration, focusing on what is interesting for people over 65 or with disabilities.
Tax-Exempt Income for Seniors (Over 65) in Spain
Here it becomes interesting. For people over 65, some types of income are exempt from taxation, such as:
- Social Security benefits for absolute permanent disability or severe disability.
- Subsidies for stays in care homes, provided certain conditions are met:
- Being over 65 years old.
- Income below twice the IPREM (Indicador Público de Renta de Efectos Múltiples).
- Benefits from the System for Autonomy and Dependency Care, such as caregiver allowances for elderly individuals.
Key Tax Benefits Related to Main Residence
- Reverse mortgage: Did you know that amounts received from a reverse mortgage are not considered income if you are over 65 years old or in a dependency situation?
- Sale of property: Additionally, if you sell your main residence after turning 65, the capital gain is exempt if the proceeds are reinvested in a life annuity.
IRPF Minimums and Deductions for Seniors and Disabled
From this point onwards, we calculate some deductions. For people over 65 these are the ones that you have to consider:
| Category | Condition | Amount (Annual) |
|---|---|---|
| Disability Minimums | Disability degree ≥ 33% | €3,000 |
| for the taxpayer, ascendants, or descendants | Disability degree ≥ 65% | €9,000 |
| Assistance expenses (third-party help required) | €3,000 | |
| Minimums for Ascendants | Disabled ascendants (any age) | €1,150 |
| ascendants over 65 years or with disabilities living with the taxpayer | Ascendants ≥ 65 years | €1,150 |
| Ascendants ≥ 75 years | €2,550 (€1,150 + €1,400) | |
| Personal Minimum | General amount | €5,550 |
| Over 65 years | €6,700 (€5,550 + €1,150) | |
| Over 75 years | €8,100 (€5,550 + €1,150 + €1,400) |
Why is it “minimum”?
Because it is the minimum amount you are entitled to, but regional governments (Autonomous Communities) can increase it. Many do, averaging an increase of €200.
General Tax Scale
After deducting all these amounts from the taxable base, the result is the taxable liquid base. This is the amount on which the tax rate is applied.
The gross tax amount is calculated using a progressive state and regional scale, ranging from 9.5% to 49% for income over €300,000.
State & Autonomous Community Quota
The Spanish Personal Income Tax (IRPF) is progressive, and the tax rates are split between the State and the Autonomous Community (region). The total tax rate ranges from 9.5% to 49%.
To make it simple, it would be like the state charges 50% and the Autonomous Communties charge another 50%. Yet, there are some little differences among Autonomous Communities in deductions and tax rates.
Below are the restructured tables for the State Quota and the Autonomous Community Quotas for Andalusia, Madrid, and Catalonia.
🇪🇸 General State Quota (2024)
This table shows the tax portion corresponding to the Spanish State. The Autonomous Community quota is calculated separately and is similar, but can have slight differences in brackets and rates.
| Taxable Base Up To (€) | Fixed Quota (for previous bracket) (€) | Applicable Rate (%) |
| 12,450.00 | 0.00 | 9.50% |
| 20,200.00 | 1,182.75 | 12.00% |
| 35,200.00 | 2,112.75 | 15.00% |
| 60,000.00 | 4,362.75 | 18.50% |
| 300,000.00 | 8,950.75 | 22.50% |
| Above 300,000.00 | 62,950.75 | 24.50% |
🏘️ Autonomous Community Quotas
The regional quotas below are examples of how Autonomous Communities apply their portion of the tax.
Andalusia Quota (Example)
| Taxable Base Up To (€) | Fixed Quota (for previous bracket) (€) | Applicable Rate (%) |
| 13,000.00 | 0.00 | 9.50% |
| 21,100.00 | 1,235.00 | 12.00% |
| 35,200.00 | 2,207.00 | 15.00% |
| 60,000.00 | 4,322.00 | 18.50% |
| Above 60,000.00 | 8,910.00 | 22.50% |
Madrid Quota (Example)
| Taxable Base Up To (€) | Fixed Quota (for previous bracket) (€) | Applicable Rate (%) |
| 12,450.00 | 0.00 | 10.50% |
| 17,707.20 | 1,307.25 | 12.00% |
| 21,000.00 | 1,938.11 | 14.00% |
| 33,007.20 | 2,399.10 | 15.00% |
| 53,407.20 | 4,200.18 | 18.80% |
| 90,000.00 | 8,035.38 | 21.50% |
| 120,000.00 | 15,902.83 | 23.50% |
| 175,000.00 | 22,952.83 | 24.50% 23 |
| Above 175,000.00 | 36,427.83 | 25.50% 24 |
Catalonia Quota (Example)
| Taxable Base Up To (€) | Fixed Quota (for previous bracket) (€) | Applicable Rate (%) |
| 13,362.22 | 0.00 | 8.50% |
| 19,004.63 | 1,135.79 | 10.70% |
| 35,425.68 | 1,739.53 | 12.80% |
| 57,320.40 | 3,841.42 | 17.40% |
| Above 57,320.40 | 7,651.10 | 20.50% |
Some Autonomous Comunities Quotas: You can find them at Tax Agency website.
Income Tax Simulator (2024)
With the basic next simulator, you may have a close approach to how much you will be charge on income tax. We have included Andalusia, Catalonia and Madrid.
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