Regulatory developments 2021
Skip information indexChanges to taxation introduced by Law 11/2020 on the General State Budgets for 2021 (Official State Gazette of 31 December)
PERSONAL INCOME TAX (IRPF)
General personal income tax scale
Starting 1 January 2021, the scale applied to the general net tax base for determining the gross state amount has been amended by adding a new bracket to the net tax base of more than EUR 300,000, to which a rate of 24.50% will be applied.
The new general scale to be applied is as follows:
Tax base Up to euros | Total tax liability Euros | Remainder of tax base Up to euros | Applicable rate Percentage |
|---|---|---|---|
0.00 |
0.00 |
12,450.00 |
9.50 |
12,450.00 |
1,182.75 |
7,750.00 |
12.00 |
20,200.00 |
2,112.75 |
15,000.00 |
15.00 |
35,200.00 |
4,362.75 |
24,800.00 |
18.50 |
60,000.00 |
8,950.75 |
240,000.00 |
22.50 |
300,000.00 |
62,950.75 |
From there on |
24.50 |
(Article 63.1 of the Personal Income Tax Law has been amended by Article 58 of the General State Budget Law for 2021)
Tax rates on savings in Personal Income Tax
Starting 1 January 2021, the scale applied to the general net tax base for determining the gross state amount on savings has been amended by adding a new bracket to the net tax base on savings of more than EUR 200,000, to which a rate of 13.00% will be applied.
The new scale to be applied to the tax base of savings is as follows
Net tax base of savings Up to euros | Total tax liability Euros | Remainder tax base of savings Up to euros | Applicable rate Percentage |
|---|---|---|---|
0 |
0 |
6,000 |
9.5 |
6,000.00 |
570 |
44,000 |
10.5 |
50,000.00 |
5,190 |
150,000 |
11.5 |
200,000.00 |
22,440 |
From there on |
13.00 |
Furthermore, the scale to be applied to the tax base of savings to determine the gross regional amount has also been amended in the same terms.
The scale to be applied in this case will be the same as indicated above.
In turn, the scale applied to the tax base of savings has been amended to determine the gross state amount for taxpayers whose usual place of residence was abroad pursuant to any of the circumstances indicated in Articles 8.2 and 10.1 of the Personal Income Tax Law.In this case, a new bracket has been added to the net base of savings of more than EUR 200,000 to which a rate of 26.00% will be applied
Therefore, in this case, the scale applicable to the tax base of savings will be as follows:
Net tax base of savings Up to euros | Total tax liability Euros | Remainder tax base of savings Up to euros | Applicable rate Percentage |
|---|---|---|---|
0 |
0 |
6,000 |
19 |
6,000.00 |
1,140 |
44,000 |
21 |
50,000.00 |
10,380 |
150,000 |
23 |
200,000.00 |
44,880 |
From there on |
26 |
(Articles 66 and 76 of the Personal Income Tax Law has been amended by Article 59 of the General State Budget Law for 2021)
Scale of tax withheld and account deposits applicable to recipients income from employment
Starting from 1 January 2021, the scale applicable for determining the withholding percentage to be levied on work income obtained employment or statutory relationships and on pension and other salary liabilities has been amended.A new bracket has been added to the base for calculating the withholding tax rate for more than EUR 300 000 to which a withholding tax rate of 47.00% will be applied.
Therefore, the scale to apply in determining the withholding rate will be as follows:
Base for calculating the withholding rate Up to euros | Withholding quota Euros | Rest of base for calculating the withholding rate Up to euros | Applicable rate Percentage |
|---|---|---|---|
0.00 |
0.00 |
12,450.00 |
19.00 |
12,450.00 |
2,365.50 |
7,750.00 |
24.00 |
20,200.00 |
4,225.50 |
15,000.00 |
30.00 |
35,200.00 |
8,725.50 |
24,800.00 |
37.00 |
60,000.00 |
17,901.50 |
240,000.00 |
45.00 |
300,000.00 |
125,901.50 |
From there on |
47.00 |
(Article 101.1 of the Personal Income Tax Law has been amended by Article 60 of the General State Budget Law for 2021)
Special system applicable to workers posted to Spanish territory
The special tax system provided for in Article 93 of the Personal Income Tax Law for workers posted to Spanish territory, effective 1 January 2021, changes the rates applicable for determining the gross tax amount.There are two different scenarios:
First, the following scale is applied to the net tax base, except for the part corresponding to dividends, interest or other income obtained from the transfer to third parties of equity and capital gains that become apparent as part of the transfer of assets:
Tax base Euros | Applicable rate Percentage |
|---|---|
Up to 600,000 |
24 |
From 600,000.01 |
47 |
(Previously the percentage applicable to the net tax base from EUR 600,000 upwards was 45%).
Second, the following scale is applied to the payable part corresponding to dividends, interest or other income obtained from the transfer to third parties of equity and capital gains that become apparent as part of the transfer of assets:
Net tax base of savings Up to euros | Total tax liability Euros | Remainder tax base of savings Up to euros | Applicable rate Percentage |
|---|---|---|---|
0 |
0 |
6,000 |
19 |
6,000.00 |
1,140 |
44,000 |
21 |
50,000.00 |
10,380 |
150,000 |
23 |
200,000.00 |
44,880 |
From there on |
26 |
(A new bracket has been created for the net tax base from EUR 200,000 upwards to which a rate of 26% will be applied).
This special system also amends, effective 1 January 2021, the withholding percentage or on-account payment of income from work.Specifically, when the payments made by a single payer for income from work during the natural year exceed €600,000, the withholding percentage applicable to the excess will be 47% (this was previously 45%).
(Article 93 of the Personal Income Tax Law has been amended by Article 61 of the General State Budget Law for 2021)
Limits on the reduction in the tax base for contributions to social security systems
Effective 1 January 2021, different limits have been changed in relation to social security systems.
Private insurance policies that exclusively cover the risk of severe or major dependency
The total reductions made by all persons paying premiums for the same taxpayer, including the taxpayer him or herself, may not exceed EUR 2,000 per year (previously the limit was EUR 8,000 per year).
Contributions to social welfare systems in which the taxpayer's spouse is a participant, member or holder:
A taxpayer whose spouse does not earn net income from work or economic activities, or earns less than EUR 8,000 per year, may reduce the taxable base by the contributions made to the social welfare systems in which the taxpayer's spouse is a unit holder, member or beneficiary.
These contributions will be subject to a maximum limit of EUR 1,000 per year (previously, this limit was EUR 2,500).
Overall maximum limit:
The lower of the following amounts shall apply as a joint ceiling for contributions to social security schemes:
30% of the sum of net earnings from work and economic activities received individually during the fiscal year.
EUR 2,000 per year (previously the limit was EUR 8,000)
From 1 January 2021, this limit will be increased by EUR 8,000, provided that the increase comes from business contributions.
Contributions made by the individual employer to employment pension plans or mutual social welfare schemes, of which he/she is in turn is a promoter and participant or member, as well as those that he/she makes to company social welfare plans or collective dependency insurance policies of which he/she in turn is the policyholder and insured person, shall be considered as company contributions, for the purposes of calculating this limit.
In addition, the EUR 5,000 per year limit for premiums paid by the company for premiums of joint insurance policies are maintained, as was previously the case.
(Articles 51.5 and 51.7 and 52 of the Personal Income Tax Law has been amended by Article 62 of the General State Budget Law for 2021)
Extension of the exclusionary limits of the flat-rate method
The quantitative limits applied in previous years determining the scope of the flat-rate method for economic activities included in the scope of the method are extended for 2021, with the exception of agriculture, farming, and forestry activities, which have their own quantitative according to turnover.
Therefore, the general exclusionary amounts for 2021 will be as follows:
Turnover earned in the year prior to this exceeding EUR 250,000 for the set of economic activities, excluding those relating to agricultural, livestock and forestry activities.All the operations shall be taken into account, irrespective of whether there is a duty to issue an invoice.Operations in which there is a duty to issue an invoice when the recipient is a business owner shall not exceed 125,000 euros.
Combined turnover for agricultural, forestry, and livestock activities exceeding 250,000 euros.
Volume of purchases in goods and services in the previous year, excluding fixed-asset purchases, exceeding 250,000 euros.
(Transitional Provision 32 of the Personal Income Tax Law has been amended by Article 63 of the General State Budget Law for 2021)
Ley 11/2020, de 30 de diciembre,
de Presupuestos Generales del Estado para el año 2021