Personal Income Tax (IRPF)

Nature of IRPF

Regulations: Art. 1 Law Income Tax

Personal Income Tax (hereinafter, IRPF) is a personal and direct tax that taxes, according to the principles of equality, generality and progressivity, the income of individuals in accordance with their nature and personal and family circumstances.

What is meant by "income" for the purposes of IRPF ?

Regulations: Art. 2 Law Income Tax

The taxpayer's income, which is the object of personal income tax, is legally defined as the totality of his returns, capital gains and losses , as well as the income imputations established by law, regardless of the place where they were produced and whatever the residence of the payer.

Treatment of personal and family circumstances in the IRPF

The personal and family minimum constitutes the part of the taxable base that, because it is used to cover the vital needs of the taxpayer and the people who depend on him, is not subject to taxation.

Scope of application of IRPF

Regulations: Art. 4 and 5 Law IRPF

Personal income tax is applied throughout the Spanish territory, with the special provisions provided for the Canary Islands, Ceuta and Melilla and without prejudice to the tax regimes of economic agreement and convention in force, respectively, in the Historical Territories of the Basque Country and in the Foral Community of Navarre.

All of this without prejudice to the provisions of international treaties and agreements that have become part of the internal legal system, in accordance with Article 96 of the Spanish Constitution.