ARCHIVED - These are the new tax measures proposed in Spain for 2023
Find out all the new tax rates for 2023 in Spain and Murcia
It’s no secret that the government in Spain is making lots of changes to laws and taxes recently, and in fact sometimes the new legislation can come so thick and fast it’s almost too quick to keep up with. Depending on your income, whether or not you own a business in Spain, and if you are homeowner, among other things, you may have to pay more or less tax next year.
Walking us through the main new taxes to be aware of, Spanish tax attorney Isaac Abad of Abad & Associates Lawyers and Accountants says there are two types of tax measures that you should know in 2023 – national taxes and regional taxes.
National Government measures in Spain
“The Spanish National government has announced some measures that will start to apply if the national General Budget for 2023 is approved,” says Abad. These include:
- The ‘tax’ of solidarity will be a temporary tax for 2023 and 2024 for those taxpayers with a wealth over 3 million euros. The tax will have three tranches: a rate of 1.7% for assets between 3 and 5 million; 2.1% for assets between 5 and 10 million; and 3.5% for assets over 10 million.
- The government is adopting tax benefits for medium- and low-income households, extending the reduction in IRPF (Income Taxes) from 18,000 to 21,000 euros.
- In turn, an increase at the IRPF (Income Taxes) will be created for incomes over 200,000 euros. The Government contemplates an increase in the tax rate for capital income over 200,000 euros: from 26% to 27%. For incomes above 300,000 euros, the rate will rise by two points, to 28%.
- Another reduction in the tax rate for Work Incomes would apply. It will operate on gross salaries between 15,000 and 21,000 euros. This also implies that the exempt minimum goes from 14,000 to 15,000 euros.
- More effort for big companies. For big companies, the exemption of dividends and capital gains will be limited to 95%. For big companies too, the Tax Office will limit by 50% the possibility of compensating the losses of the subsidiaries in the consolidated groups. The action, which is temporary, will be for 2023 and 2024.
- Reduction of corporation tax to 23% for SMEs (small and medium enterprises, known as PYMES in Spanish). To also alleviate the situation of small businesses, the government said that the nominal rate of corporation tax would be reduced from 25% to 23% for PYMES with a turnover of up to 1 million euros.
- An additional 5% reduction in net module for the self-employed will be approved in the Income Taxes. In addition, 5% of the net (with a maximum annual amount of 2,000 euros) is raised to 7% the percentage of reduction. This reduction applies to some deductible expenditure.
Regional measures in Murcia
Lawyer Abad states that, “In Murcia in 2022, some very interesting tax measures were introduced” and these will have an effect on taxpayers in 2023:
- Deduction for the lease of a property. Young people under the age of 35, large families and disabled persons with a certifiable degree of disability equal to or greater than 65% are allowed to deduct 10% of the unsubsidised amounts paid in the financial year, subject to the limit of 300 euros per year per lease, both individually and jointly. This will apply in the regional part of the Income Taxes form.
- Deduction for working women. For the care of each child under the age of 18 or dependent person, working women can get:
- 300 euros for the first child
- 350 euros for the second child
- 400 euros in the case of third or successive children
- 400 euros per dependent
For the application of the deduction, the amount resulting from the sum of the general tax base and the savings cannot exceed 20,000 euros in individual declarations and 40,000 euros in joint declarations. This will apply in the regional part of the Income Taxes form.
- Reduction of 4.1% on the regional part of the IRPF (Income Taxes) scale to alleviate the impact of inflation.
- Deduction for contributions to projects of exceptional regional public interest. A deduction is established in the total tax liability of 100% of the amount of money allocated during the year following the date of accrual to projects of exceptional regional public interest. This will apply in the regional part of the Income Taxes form.
- The progressive reduction of taxation on donations continues, extending the deduction in the tax liability to 99% to second and third degree collaterals, ascendants and descendants by affinity.
Because the world of Spanish taxes is so murky and changeable, it’s advisable to consult a qualified, professional lawyer who can advise you on how much tax you need to pay as a worker, homeowner or business owner.
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Avenida de la Libertad Edificio Europa no. 301, 2nd Floor, Business Premise No. I, 30710, Los Alcazares, MurciaTel: +34 968 58 30 53
Specialists in Conveyancing, Property Law, taxes, probate and residency in Murcia
Abad & Asociados Abogados y Economistas, S.R.L. is a firm of English-speaking lawyers and accountants founded in 1996 in Murcia by Isaac Abad, winner of the “Best Lawyer 2022” award in Tax Law in Murcia granted by “Best Lawyers”.
The Abad Abogados Murcia law firm specialises in offering innovative legal solutions to its clients, prioritising quality, satisfaction and success. With offices in central locations in Murcia city, Los Alcázares and La Zenia in Orihuela Costa, Alicante, it is easy for expats and foreign citizens abroad in Spain to access the legal services they need.
The team at Abad can help you with any issues relating to Real Estate and Property law, Taxation, Litigations and Commercial law in Spain. From getting a NIE number in order to 
be able to undertake official paperwork in Spain, to completing your residency and visa requirements, they are there to ease every step of the move to Spain for people wanting to come and live in the country.
be able to undertake official paperwork in Spain, to completing your residency and visa requirements, they are there to ease every step of the move to Spain for people wanting to come and live in the country.They can also handle any resident and non-resident tax declarations in Spain, including property taxes and issues surrounding double taxation across international borders, as well as inheritance tax and wills.
Whether you want to formally register your own business in Spain, take someone to court or face being taken to court yourself for whatever reason, Abad & Associates will be by your side.
Their unqualified successes in helping clients navigate these issues have made Abad Abogados one of the leading firms of Lawyers and Accountants and Tax Advisors in the Region of Murcia and in Alicante province.
