Spain 2014 General State Budget Bill


29 Oct. 2013

The draft national budget for 2014 was presented on 30 September 2013 to the Spanish Parliament.

The economical measures within the structural reforms approved on December 2011 by the Spanish Government raised certain taxes temporarily to offset the forecast deficit drift. A supplementary solidarity surcharge was levied on work income and capital income for 2012 and 2013. Art. 64 of the 2014 draft budget has proposed an extension of the surcharges for 2014.

In contrast, it has been also proposed to hold Wealth Tax in abeyance again for 2014.

Non-resident income tax for 2014

Capital gains tax rate remains at 21% and standard Income tax rate also remains at 24,75%

Resident income tax for 2014

For savings income (dividends, interest, capital gains and losses within more than one year, etc.) the supplementary surcharges ranges from 2% to 6% so tax rates are from 21% to 27%.

For standard taxable base (employment income, self-employment and business, rentals and capital gains within one year) the percentage goes from 0,75% on the lowest band up to 7%, so tax rates are from 24,75% to 52% (54% in Andalucía)

Wealth Tax for 2014

For residents and non-residents, it has been proposed to hold the tax in abeyance as of 1st January 2015.

Wealth Tax can vary by región and at present Madrid is the only región where Wealth Tax has almost full exemption.

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