
## What the contributory unemployment benefit is

The "paro" is the **contributory unemployment benefit** paid by the SEPE when you lose your job involuntarily and have contributed enough. It isn't a fixed allowance: it depends on **how much you've contributed** (how much you'll receive) and on **how long you've contributed** (for how many months you'll receive it).

You can work out your case in seconds with the [**unemployment benefit calculator**](/spanish-unemployment-benefit-calculator!new), but here's a step-by-step of where the numbers come from.

## Requirement: at least 360 days contributed

To be entitled to the contributory benefit you need to have contributed a **minimum of 360 days** for unemployment over the **last 6 years**, plus be in a legal situation of unemployment (dismissal, end of contract, collective layoff...). Voluntarily quitting doesn't entitle you to the benefit.

With fewer than 360 days contributed you don't get the contributory benefit, but you might qualify for a means-tested **subsidy** from the SEPE.

## The regulatory base

The benefit amount is calculated on the **regulatory base**: the average of your **unemployment contribution bases over the last 180 days** worked. As those bases roughly match your gross salary (with extra payments prorated), a good estimate is:

> Monthly regulatory base ≈ gross annual salary ÷ 12

The regulatory base is **capped by the maximum contribution base** (€5,101.20/month in 2026), so no matter how high your salary is, the benefit won't grow beyond that limit.

## How much you get: 70% and 60%

Two percentages are applied to the regulatory base:

- **First 180 days (6 months): 70%** of the regulatory base.
- **From day 181 onwards: 60%.**

This 60% from day 181 is the change introduced by Royal Decree-law 2/2024, in force since 1 November 2024 (it used to be 50%).

## The IPREM caps by dependent children

The amount can't be just anything: it has a **minimum and a maximum** that depend on the **IPREM** (€600/month in 2026, frozen since 2023) increased by one sixth (€700/month) and on the **number of dependent children**:

| Dependent children | Minimum | Maximum |
|---|---:|---:|
| No children | €560 (80%) | €1,225 (175%) |
| 1 child | €749 (107%) | €1,400 (200%) |
| 2 or more children | €749 (107%) | €1,575 (225%) |

That's why, with a mid-to-high salary and no children, many people receive the **€1,225/month** cap even if 70% of their regulatory base would be higher.

## How long you get it: the duration

The duration depends on the **days contributed** over the last 6 years, according to this scale:

| Days contributed | Benefit duration |
|---|---|
| 360 – 539 | 120 days (4 months) |
| 540 – 719 | 180 days (6 months) |
| 720 – 899 | 240 days (8 months) |
| 900 – 1,079 | 300 days (10 months) |
| 1,080 – 1,259 | 360 days (12 months) |
| 1,260 – 1,439 | 420 days (14 months) |
| 1,440 – 1,619 | 480 days (16 months) |
| 1,620 – 1,799 | 540 days (18 months) |
| 1,800 – 1,979 | 600 days (20 months) |
| 1,980 – 2,159 | 660 days (22 months) |
| 2,160 or more | 720 days (24 months) |

The maximum is **720 days, i.e. 24 months** of benefit, reached with 6 years contributed.

## And net? The Social Security contribution

While you receive the benefit you keep contributing: the SEPE **deducts the worker's share from your benefit**, **4.7% of the regulatory base**. Income tax may also be withheld, but it's **voluntary** and at these amounts it's usually 0%.

So the net you receive each month is, roughly, the gross amount minus that 4.7% of the regulatory base.

## A full example

Imagine a worker with a **gross salary of €30,000/year**, **no children** and **6 years contributed**:

- Regulatory base ≈ 30,000 ÷ 12 = **€2,500/month**.
- 70% = €1,750, but it's **capped at €1,225/month** (maximum with no children) for the first 6 months.
- 60% = €1,500, also capped at **€1,225/month** from month 7.
- Social Security: 4.7% of 2,500 = **€117.50/month**, so the net is around **€1,107/month**.
- Duration: **720 days (24 months)**.

## Calculate your benefit

Every situation is different (salary, children, days contributed), so the fastest way is to try your own case:

👉 [**Calculate my unemployment benefit**](/spanish-unemployment-benefit-calculator!new)

And if you've just lost your job, remember that before the benefit you're entitled to [**severance pay**](/severance-pay-calculator!new): calculate that too to know how much of a cushion you have.


How much unemployment benefit you get in Spain in 2026 (paro)


## What the Beckham Law is

The Beckham Law (officially the _special regime for inpatriate workers_) lets people who move to Spain for work pay income tax **as if they were non-residents**: a **flat 24% on employment income up to €600,000 per year** (47% on anything above), instead of the progressive scale that reaches 45%–50% depending on the region. It applies for the **year of arrival plus the following five tax years** — six years in total.

You can see exactly what your net salary would look like under the regime with our [**Spanish net salary calculator**](/en/spanish-net-salary-calculator!new): select **"Beckham Law"** in the region dropdown and compare it against your actual region.

## Who qualifies in 2026

- You have **not been a Spanish tax resident in the 5 years** before the move.
- You move to Spain because of an **employment contract** (Spanish employer, or posted to Spain by a foreign one), as a **remote employee with the digital nomad visa** working for a non-Spanish company, or as a qualifying **entrepreneur / highly qualified professional** under the Startup Law.
- You apply on time: **Modelo 149 within 6 months** of registering with Spanish social security. Miss the deadline and the regime is lost — there is no second chance.

## When it pays off — and when it doesn't

24% flat sounds unbeatable, but it is a flat rate from the very first euro, with **no personal allowances and no joint-taxation options**. Meanwhile the regular scale starts at 19% and only reaches 24% around €20,000 of taxable base.

- **High salaries (roughly €60,000 and up): the regime wins clearly.** At €100,000 in most regions you save five figures over the six years.
- **Salaries under roughly €35,000–€40,000: run the numbers first.** The regular regime's allowances and lower opening brackets can leave you paying *less* than 24%, especially with family allowances.
- Savings income (interest, dividends, capital gains) from Spanish sources is taxed at the normal savings scale (19%–28%) — see the [2026 Spanish tax brackets](/en/blog/spanish-income-tax-brackets-2026) for all the tables.

The break-even point depends on your region and personal situation, which is exactly what the [calculator](/en/spanish-net-salary-calculator!new) shows side by side.

## Things expats often miss

- The six years run on **tax years**, not full calendar years from arrival: arriving in November still burns the whole first year.
- Under the regime you are taxed **only on Spanish-source income** for most income types, but employment income is taxed in Spain wherever it comes from.
- You keep filing as a **non-resident for wealth-tax purposes only on Spanish assets**, which matters if you keep property abroad.
- US citizens: the regime does not remove your US filing obligations, and the interaction with the foreign tax credit deserves professional advice.

## Related tools

- [Spanish net salary calculator](/en/spanish-net-salary-calculator!new) — regular regime vs Beckham, side by side
- [Spanish income tax brackets 2026](/en/blog/spanish-income-tax-brackets-2026) — all the tables the calculator uses
- [Self-employed in Spain 2026](/en/blog/self-employed-social-security-spain-2026) — if you are considering the autónomo route instead

_Last reviewed: July 2026._


Beckham Law in Spain 2026: the 24% flat tax explained (with calculator)


## How the Spanish self-employed quota works in 2026

Since 2023, Spanish freelancers (_autónomos_) contribute to social security based on their **real net income**: revenue minus deductible expenses (minus an extra 7% generic allowance, 3% for company directors). Your monthly net income places you in one of **15 brackets**, and within your bracket you freely choose a contribution base between the minimum and the maximum. The monthly quota is **31.3%** of the chosen base (it covers healthcare, pension, unemployment, training and the MEI surcharge).

You can check your exact case in seconds with the [**self-employed quota calculator**](/en/self-employed-social-security-calculator!new).

## 2026 brackets and quotas table

| Bracket | Net income/month | Contribution base (min–max) | Monthly quota (min–max) |
|---:|---:|---:|---:|
| 1 | Up to €670 | €653.59 – €718.75 | **€204.57 – €224.97** |
| 2 | €670 – €900 | €718.75 – €900 | **€224.97 – €281.70** |
| 3 | €900 – €1,166.70 | €849.66 – €1,166.70 | **€265.94 – €365.18** |
| 4 | €1,166.70 – €1,300 | €950.98 – €1,300 | **€297.66 – €406.90** |
| 5 | €1,300 – €1,500 | €960.78 – €1,500 | **€300.72 – €469.50** |
| 6 | €1,500 – €1,700 | €960.78 – €1,700 | **€300.72 – €532.10** |
| 7 | €1,700 – €1,850 | €1,143.79 – €1,850 | **€358.01 – €579.05** |
| 8 | €1,850 – €2,030 | €1,209.15 – €2,030 | **€378.46 – €635.39** |
| 9 | €2,030 – €2,330 | €1,274.51 – €2,330 | **€398.92 – €729.29** |
| 10 | €2,330 – €2,760 | €1,395.04 – €2,760 | **€436.65 – €863.88** |
| 11 | €2,760 – €3,190 | €1,515.58 – €3,190 | **€474.38 – €998.47** |
| 12 | €3,190 – €3,620 | €1,636.13 – €3,620 | **€512.11 – €1,133.06** |
| 13 | €3,620 – €4,050 | €1,756.66 – €4,050 | **€549.83 – €1,267.65** |
| 14 | €4,050 – €6,000 | €1,877.21 – €4,495.50 | **€587.57 – €1,407.09** |
| 15 | €6,000 or more | €1,997.76 – €4,495.50 | **€625.30 – €1,407.09** |

The usual minimum quota works out at **~€204.57/month** for low incomes, and the maximum possible in the system is **~€1,407/month**.

## Flat rate for new freelancers (tarifa plana)

If you register as self-employed for the first time (or have not been registered in the last 2 years), you can apply for the **€80/month flat rate for your first 12 months**, whatever your income. It can be extended for another 12 months if your net income stays below the Spanish minimum wage.

## The quota is provisional: the yearly adjustment

What you pay each month is an advance. The following year, the tax agency cross-checks your real income with social security:

- If you contributed **below** your real bracket, you will be billed the difference.
- If you contributed **above** it, the excess is refunded.

You can change your contribution base every two months, so adjust it during the year if your income changes.

## Related tools

- [Self-employed quota calculator](/en/self-employed-social-security-calculator!new) — your bracket and 2026 quota instantly
- [Spanish net salary calculator](/en/spanish-net-salary-calculator!new) — if you are comparing employment vs freelancing
- [Spanish income tax brackets 2026](/en/blog/spanish-income-tax-brackets-2026) — the income tax you will pay on top

_Last reviewed: July 2026. The table is generated automatically from the same data the calculator uses._


Self-employed in Spain 2026: social security brackets and monthly quota


## Spanish income tax (IRPF) brackets in force in 2026

Spanish income tax on employment income has two halves: a **state scale**, identical across Spain, and a **regional scale** set by each autonomous community. The rate you pay on each extra euro you earn (the _marginal rate_) is the sum of both. These are the exact tables used by our [**Spanish net salary calculator**](/spanish-net-salary-calculator!new), where you can see your monthly take-home pay by region.

> Important: the scales apply to the **taxable base** (after allowances), not to your gross salary. Regions that have not yet published a new 2026 scale keep applying the last one approved — that is why some tables match previous years.

### State scale 2026

Applies in every common-regime region (all except Navarre and the Basque Country):

| From | Up to | Rate |
|---:|---:|---:|
| €0 | €12,450 | 9.5% |
| €12,450 | €20,200 | 12% |
| €20,200 | €35,200 | 15% |
| €35,200 | €60,000 | 18.5% |
| €60,000 | €300,000 | 22.5% |
| €300,000 | _And above_ | 24.5% |

### Savings scale 2026

For deposit interest, dividends and capital gains (state-wide, same everywhere in Spain). It is the scale behind our [deposit calculator](/deposit-calculator!new):

| From | Up to | Rate |
|---:|---:|---:|
| €0 | €6,000 | 19% |
| €6,000 | €50,000 | 21% |
| €50,000 | €200,000 | 23% |
| €200,000 | €300,000 | 27% |
| €300,000 | _And above_ | 28% |

## Total marginal rate by autonomous community

Each table adds the state scale to the regional scale in force. The bold column is the rate you pay on each additional euro within that taxable-base band.

### Andalucía

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9.5% | **19%** |
| €12,450 | €13,000 | 12% | 9.5% | **21.5%** |
| €13,000 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €21,100 | 15% | 12% | **27%** |
| €21,100 | €35,200 | 15% | 15% | **30%** |
| €35,200 | €60,000 | 18.5% | 18.5% | **37%** |
| €60,000 | €300,000 | 22.5% | 22.5% | **45%** |
| €300,000 | _And above_ | 24.5% | 22.5% | **47%** |

### Aragón

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9.5% | **19%** |
| €12,450 | €13,072.5 | 12% | 9.5% | **21.5%** |
| €13,072.5 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €21,210 | 15% | 12% | **27%** |
| €21,210 | €35,200 | 15% | 15% | **30%** |
| €35,200 | €36,960 | 18.5% | 15% | **33.5%** |
| €36,960 | €52,500 | 18.5% | 18.5% | **37%** |
| €52,500 | €60,000 | 18.5% | 20.5% | **39%** |
| €60,000 | €80,000 | 22.5% | 23% | **45.5%** |
| €80,000 | €90,000 | 22.5% | 24% | **46.5%** |
| €90,000 | €130,000 | 22.5% | 25% | **47.5%** |
| €130,000 | €300,000 | 22.5% | 25.5% | **48%** |
| €300,000 | _And above_ | 24.5% | 25.5% | **50%** |

### Asturias

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 10% | **19.5%** |
| €12,450 | €17,707.2 | 12% | 12% | **24%** |
| €17,707.2 | €20,200 | 12% | 14% | **26%** |
| €20,200 | €33,007.2 | 15% | 14% | **29%** |
| €33,007.2 | €35,200 | 15% | 18.5% | **33.5%** |
| €35,200 | €53,407.2 | 18.5% | 18.5% | **37%** |
| €53,407.2 | €60,000 | 18.5% | 21.5% | **40%** |
| €60,000 | €70,000 | 22.5% | 21.5% | **44%** |
| €70,000 | €90,000 | 22.5% | 22.5% | **45%** |
| €90,000 | €175,000 | 22.5% | 25% | **47.5%** |
| €175,000 | €300,000 | 22.5% | 25.5% | **48%** |
| €300,000 | _And above_ | 24.5% | 25.5% | **50%** |

### Canarias

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9% | **18.5%** |
| €12,450 | €13,010 | 12% | 9% | **21%** |
| €13,010 | €18,468 | 12% | 11.5% | **23.5%** |
| €18,468 | €20,200 | 12% | 14% | **26%** |
| €20,200 | €34,327 | 15% | 14% | **29%** |
| €34,327 | €35,200 | 15% | 18.5% | **33.5%** |
| €35,200 | €55,276 | 18.5% | 18.5% | **37%** |
| €55,276 | €60,000 | 18.5% | 23.5% | **42%** |
| €60,000 | €90,000 | 22.5% | 23.5% | **46%** |
| €90,000 | €120,000 | 22.5% | 25% | **47.5%** |
| €120,000 | €300,000 | 22.5% | 26% | **48.5%** |
| €300,000 | _And above_ | 24.5% | 26% | **50.5%** |

### Cantabria

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9.5% | **19%** |
| €12,450 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €34,000 | 15% | 15% | **30%** |
| €34,000 | €35,200 | 15% | 18.5% | **33.5%** |
| €35,200 | €46,000 | 18.5% | 18.5% | **37%** |
| €46,000 | €60,000 | 18.5% | 19.5% | **38%** |
| €60,000 | €90,000 | 22.5% | 24.5% | **47%** |
| €90,000 | €300,000 | 22.5% | 25.5% | **48%** |
| €300,000 | _And above_ | 24.5% | 25.5% | **50%** |

### Castilla y León

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9% | **18.5%** |
| €12,450 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €35,200 | 15% | 14% | **29%** |
| €35,200 | €53,407.2 | 18.5% | 18.5% | **37%** |
| €53,407.2 | €60,000 | 18.5% | 21.5% | **40%** |
| €60,000 | €300,000 | 22.5% | 21.5% | **44%** |
| €300,000 | _And above_ | 24.5% | 21.5% | **46%** |

### Castilla-La Mancha

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9.5% | **19%** |
| €12,450 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €35,200 | 15% | 15% | **30%** |
| €35,200 | €60,000 | 18.5% | 18.5% | **37%** |
| €60,000 | €300,000 | 22.5% | 22.5% | **45%** |
| €300,000 | _And above_ | 24.5% | 22.5% | **47%** |

### Cataluña

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 10.5% | **20%** |
| €12,450 | €17,707.2 | 12% | 12% | **24%** |
| €17,707.2 | €20,200 | 12% | 14% | **26%** |
| €20,200 | €21,000 | 15% | 14% | **29%** |
| €21,000 | €33,007.2 | 15% | 15% | **30%** |
| €33,007.2 | €35,200 | 15% | 18.8% | **33.8%** |
| €35,200 | €53,407.2 | 18.5% | 18.8% | **37.3%** |
| €53,407.2 | €60,000 | 18.5% | 21.5% | **40%** |
| €60,000 | €90,000 | 22.5% | 21.5% | **44%** |
| €90,000 | €120,000 | 22.5% | 23.5% | **46%** |
| €120,000 | €175,000 | 22.5% | 24.5% | **47%** |
| €175,000 | €300,000 | 22.5% | 25.5% | **48%** |
| €300,000 | _And above_ | 24.5% | 25.5% | **50%** |

### Ceuta y Melilla

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9.5% | **19%** |
| €12,450 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €35,200 | 15% | 15% | **30%** |
| €35,200 | €60,000 | 18.5% | 18.5% | **37%** |
| €60,000 | €300,000 | 22.5% | 22.5% | **45%** |
| €300,000 | _And above_ | 24.5% | 22.5% | **47%** |

### Comunidad de Madrid

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 8.5% | **18%** |
| €12,450 | €13,362.22 | 12% | 8.5% | **20.5%** |
| €13,362.22 | €19,004.62 | 12% | 10.7% | **22.7%** |
| €19,004.62 | €20,200 | 12% | 12.8% | **24.8%** |
| €20,200 | €35,200 | 15% | 12.8% | **27.8%** |
| €35,200 | €35,425.67 | 18.5% | 12.8% | **31.3%** |
| €35,425.67 | €57,320.4 | 18.5% | 17.4% | **35.9%** |
| €57,320.4 | €60,000 | 18.5% | 20.5% | **39%** |
| €60,000 | €300,000 | 22.5% | 20.5% | **43%** |
| €300,000 | _And above_ | 24.5% | 20.5% | **45%** |

### Comunidad Valenciana

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,000 | 9.5% | 9% | **18.5%** |
| €12,000 | €12,450 | 9.5% | 12% | **21.5%** |
| €12,450 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €22,000 | 15% | 12% | **27%** |
| €22,000 | €32,000 | 15% | 15% | **30%** |
| €32,000 | €35,200 | 15% | 17.5% | **32.5%** |
| €35,200 | €42,000 | 18.5% | 17.5% | **36%** |
| €42,000 | €52,000 | 18.5% | 20% | **38.5%** |
| €52,000 | €60,000 | 18.5% | 22.5% | **41%** |
| €60,000 | €62,000 | 22.5% | 22.5% | **45%** |
| €62,000 | €72,000 | 22.5% | 25% | **47.5%** |
| €72,000 | €100,000 | 22.5% | 26.5% | **49%** |
| €100,000 | €150,000 | 22.5% | 27.5% | **50%** |
| €150,000 | €200,000 | 22.5% | 28.5% | **51%** |
| €200,000 | €300,000 | 22.5% | 29.5% | **52%** |
| €300,000 | _And above_ | 24.5% | 29.5% | **54%** |

### Extremadura

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 8% | **17.5%** |
| €12,450 | €20,200 | 12% | 10% | **22%** |
| €20,200 | €24,200 | 15% | 16% | **31%** |
| €24,200 | €35,200 | 15% | 17.5% | **32.5%** |
| €35,200 | €60,000 | 18.5% | 21% | **39.5%** |
| €60,000 | €80,200 | 22.5% | 23.5% | **46%** |
| €80,200 | €99,200 | 22.5% | 24% | **46.5%** |
| €99,200 | €120,200 | 22.5% | 24.5% | **47%** |
| €120,200 | €300,000 | 22.5% | 25% | **47.5%** |
| €300,000 | _And above_ | 24.5% | 25% | **49.5%** |

### Galicia

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9% | **18.5%** |
| €12,450 | €12,985.35 | 12% | 9% | **21%** |
| €12,985.35 | €20,200 | 12% | 11.65% | **23.65%** |
| €20,200 | €21,068.6 | 15% | 11.65% | **26.65%** |
| €21,068.6 | €35,200 | 15% | 14.9% | **29.9%** |
| €35,200 | €60,000 | 18.5% | 18.4% | **36.9%** |
| €60,000 | €300,000 | 22.5% | 22.5% | **45%** |
| €300,000 | _And above_ | 24.5% | 22.5% | **47%** |

### Islas Baleares

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €10,000 | 9.5% | 9.5% | **19%** |
| €10,000 | €12,450 | 9.5% | 11.75% | **21.25%** |
| €12,450 | €18,000 | 12% | 11.75% | **23.75%** |
| €18,000 | €20,200 | 12% | 14.75% | **26.75%** |
| €20,200 | €30,000 | 15% | 14.75% | **29.75%** |
| €30,000 | €35,200 | 15% | 17.75% | **32.75%** |
| €35,200 | €48,000 | 18.5% | 17.75% | **36.25%** |
| €48,000 | €60,000 | 18.5% | 19.25% | **37.75%** |
| €60,000 | €70,000 | 22.5% | 19.25% | **41.75%** |
| €70,000 | €90,000 | 22.5% | 22% | **44.5%** |
| €90,000 | €120,000 | 22.5% | 23% | **45.5%** |
| €120,000 | €175,000 | 22.5% | 24% | **46.5%** |
| €175,000 | €300,000 | 22.5% | 25% | **47.5%** |
| €300,000 | _And above_ | 24.5% | 25% | **49.5%** |

### La Rioja

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9% | **18.5%** |
| €12,450 | €20,200 | 12% | 11.6% | **23.6%** |
| €20,200 | €35,200 | 15% | 14.6% | **29.6%** |
| €35,200 | €50,000 | 18.5% | 18.8% | **37.3%** |
| €50,000 | €60,000 | 18.5% | 19.5% | **38%** |
| €60,000 | €120,000 | 22.5% | 25% | **47.5%** |
| €120,000 | €300,000 | 22.5% | 27% | **49.5%** |
| €300,000 | _And above_ | 24.5% | 27% | **51.5%** |

### Región de Murcia

| From | Up to | State rate | Regional rate | Total (marginal) rate |
|---:|---:|---:|---:|---:|
| €0 | €12,450 | 9.5% | 9.5% | **19%** |
| €12,450 | €20,200 | 12% | 12% | **24%** |
| €20,200 | €34,000 | 15% | 13.3% | **28.3%** |
| €34,000 | €35,200 | 15% | 17.9% | **32.9%** |
| €35,200 | €60,000 | 18.5% | 17.9% | **36.4%** |
| €60,000 | €300,000 | 22.5% | 22.5% | **45%** |
| €300,000 | _And above_ | 24.5% | 22.5% | **47%** |

## Foral regimes: Navarre and the Basque Country

Navarre and the Basque foral provinces run their own complete income tax (there is no state + regional split). Their single scale is:

### Navarra

| From | Up to | Rate |
|---:|---:|---:|
| €0 | €4,458 | 13% |
| €4,458 | €10,030 | 22% |
| €10,030 | €21,175 | 25% |
| €21,175 | €35,663 | 28% |
| €35,663 | €51,266 | 36.5% |
| €51,266 | €66,869 | 41.5% |
| €66,869 | €89,159 | 44% |
| €89,159 | €139,310 | 47% |
| €139,310 | €195,034 | 49% |
| €195,034 | €334,344 | 50.5% |
| €334,344 | _And above_ | 52% |

### País Vasco

| From | Up to | Rate |
|---:|---:|---:|
| €0 | €17,280 | 23% |
| €17,280 | €34,560 | 28% |
| €34,560 | €51,840 | 35% |
| €51,840 | €74,030 | 40% |
| €74,030 | €102,530 | 45% |
| €102,530 | €136,670 | 46% |
| €136,670 | €199,240 | 47% |
| €199,240 | _And above_ | 49% |

## Beckham Law (inpatriates)

Workers relocated to Spain under the special Beckham Law regime pay a flat rate, with no regional scale:

| From | Up to | Rate |
|---:|---:|---:|
| €0 | €600,000 | 24% |
| €600,000 | _And above_ | 47% |

## Calculate your own case

The tables give you the marginal rate; what you actually care about is your **net salary**, which also depends on social security contributions, number of payments and personal allowances. That is what the [Spanish net salary calculator](/spanish-net-salary-calculator!new) is for: pick your region and 2026 and compare. If you are self-employed, try the [self-employed social security calculator](/self-employed-social-security-calculator!new).

_Last reviewed: July 2026. These tables are generated automatically from the same data the calculator uses._


Spanish income tax brackets 2026: tables by region


## La misma inversión, dos fiscalidades opuestas

Con la misma aportación, la misma rentabilidad y el mismo plazo, un fondo indexado y un plan de pensiones acaban en cifras muy distintas. No es magia financiera: es que **tributan en momentos y a tipos diferentes**, y eso lo cambia todo.

- **Plan de pensiones**: lo que aportas **se deduce hoy de tu IRPF** (hasta 1.500 € al año en planes individuales). A cambio, cuando lo rescates en la jubilación, todo lo rescatado — aportaciones y beneficios — tributa como **rendimiento del trabajo**, a tu tipo marginal de entonces.
- **Fondo indexado**: inviertes dinero ya tributado (no hay deducción), pero solo pagas al vender, y únicamente por la **ganancia**, a la escala del ahorro (19%–28%). Mientras tanto puedes **traspasar entre fondos sin tributar**.

## Los cuatro factores que deciden

1. **Tu tipo marginal hoy vs en la jubilación.** Es el factor dominante. Si hoy estás en un marginal alto (37%–47%) y esperas rescatar a un tipo bajo, la deducción del plan vale mucho. Si ya tributas poco, la deducción apenas aporta y la fiscalidad del fondo gana. Puedes ver tu marginal exacto en las [tablas de tramos IRPF 2026](/blog/tramos-irpf-2026-tablas-por-comunidad).
2. **Qué haces con la deducción.** El plan solo compite de verdad si **reinviertes cada año lo que te devuelve Hacienda**. Si se diluye en gasto corriente, pierde su ventaja.
3. **Las comisiones.** Los planes de pensiones tienen de media comisiones más altas que un indexado barato (1% vs 0,1%–0,3%). A 30 años, esa diferencia se come una parte enorme de la ventaja fiscal.
4. **La forma de rescate.** Rescatar el plan de golpe puede dispararte a un marginal alto justo el año del rescate; hacerlo en rentas anuales moderadas mantiene el tipo bajo. Con el fondo, vendes solo lo que necesitas y tributas solo por la parte de ganancia.

Y un quinto que no es fiscal: la **liquidez**. El fondo se vende cuando quieras; el plan solo en los supuestos legales (jubilación, paro de larga duración, enfermedad grave… y las aportaciones con más de 10 años de antigüedad).

## No lo estimes: calcúlalo

Cada combinación de marginal actual, marginal futuro, comisiones y forma de rescate da un ganador distinto. La [**calculadora de fondo indexado vs plan de pensiones**](/calculadora-fondo-indexado-vs-plan-de-pensiones!new) simula tu caso completo: fase de acumulación y fase de rescate año a año, con tu tipo marginal real (lo calcula desde tu sueldo y comunidad) y las comisiones de cada producto.

Dos reglas rápidas que verás confirmadas al jugar con ella:

- Marginal alto hoy + rescate planificado a tipo bajo + deducción reinvertida → **el plan gana**.
- Marginal medio o bajo hoy, o rescate desordenado, o comisiones altas → **el fondo indexado gana**.

_Última revisión: julio de 2026._


Fondo indexado o plan de pensiones: qué sale mejor (y de qué depende)


## Share your calculation with a link

We've added a **"Share link"** button to the net salary calculator and the mortgage calculator. Clicking it automatically copies a URL with all the parameters of your current simulation.

When someone opens that link, the calculator loads directly with the same values you had — no need to fill anything in.

## What can you use it for?

### Comparing a job offer with your current situation

You're in a hiring process and you get an offer for €55,000 gross in Madrid. Set up the full scenario — salary, region, payslips, flexible pay — and send the link to your partner or a friend so they can see the numbers for themselves.

### Getting advice on a mortgage

You're looking at a €350,000 flat with 20% down at 3.2% over 30 years. Set it up in the calculator and send the link to your financial advisor or someone you trust to check whether the numbers make sense.

### Saving a scenario to come back to later

The link also works as a bookmark. Save it to your favourites and when you return you'll have exactly the same simulation, without relying on the browser having stored local data.

### Sharing content in posts or social media

If you write about personal finance, you can link directly to a specific scenario instead of telling readers "enter these values". The calculation will be done when they arrive.

## What parameters does the link include?

**Net salary calculator:**
- Annual gross salary
- Autonomous community (region)
- Number of payslips
- Fiscal year
- Flexible pay (health insurance, meals, transport, nursery)

**Mortgage calculator:**
- Property price
- Down payment percentage
- Interest rate
- Term in years
- Autonomous community
- Property type (new or second-hand)

## How it works

1. Configure the calculator with your values
2. Click the **"Share link"** button that appears next to the title
3. The URL is automatically copied to your clipboard
4. Paste it wherever you want — WhatsApp, email, Slack, bookmarks

The button doesn't appear when printing, so PDFs and printouts stay clean.

---

Try it now in the [net salary calculator](/spanish-net-salary-calculator) or the [mortgage calculator](/spanish-mortgage-calculator).


Share your net salary or mortgage calculation with a link


## Salary Calculator 2026 - Now Available

Good news! The net salary calculator is now updated for fiscal year 2026. Although the General State Budget hasn't been approved yet, we can already provide you with confirmed changes in Social Security and the solidarity fee. Try the [**Net Salary Calculator 2026**](/en/spanish-net-salary-calculator!new).

## ✅ Confirmed updates for 2026

### 📊 Social Security Contribution Bases

Contribution bases have experienced a **3.9% increase** compared to 2025:

| Concept | 2025 | 2026 | Increase |
|:--------|-----:|-----:|---------:|
| **Monthly maximum base** | €4,909.5 | **€5,101.2** | +3.9% |
| **Annual maximum base** | €58,914 | **€61,214.4** | +3.9% |
| **Monthly minimum base** | €1,381.2 | **€1,381.2*** | 0% |
| **Annual minimum base** | €16,574.4 | **€16,574.4*** | 0% |

\* *Provisional minimum base, pending approval of 2026 minimum wage*

This 3.9% increase is calculated as: **2.7% (average CPI) + 1.2%** (fixed increase established in the pension reform).

### 💰 Solidarity Fee 2026

The solidarity fee continues its planned progressive escalation. For salaries exceeding the maximum base (€61,214.4):

| Annual salary bracket | 2025 Total Rate | 2026 Total Rate | Increase |
|:----------------------|----------------:|----------------:|---------:|
| Max base up to +10% | 0.92% | **1.15%** | +0.23% |
| Between +10% and +50% | 1.00% | **1.25%** | +0.25% |
| Over +50% | 1.17% | **1.46%** | +0.29% |

**Distribution between employer and employee:**

| Bracket | Employee 2026 | Employer 2026 |
|:--------|---------------:|--------------:|
| €61,214.4 - €67,335.84 | 0.19% | 0.96% |
| €67,335.84 - €91,821.6 | 0.21% | 1.04% |
| > €91,821.6 | 0.24% | 1.22% |

The distribution remains the same as in 2025: **83.4% employer** and **16.6% employee**.

### 🔧 MEI (Intergenerational Equity Mechanism)

The MEI also increases in 2026:

| Year | Total MEI | Employee | Employer |
|:-----|----------:|---------:|---------:|
| 2025 | 0.67% | 0.13% | 0.54% |
| **2026** | **0.90%** | **0.15%** | **0.75%** |

This mechanism is designed to strengthen the pension system in the face of population aging.

### 📈 Total contribution percentages 2026

With all these changes, the contribution percentages for 2026 are:

- **Employee**: ~6.50% (4.70% CC + 0.15% MEI + 1.55% Unemployment + 0.10% FP)
- **Employer**: ~32.22% (23.60% CC + 0.75% MEI + 5.50% Unemployment + 0.20% FOGASA + 0.60% FP + others)

## ⏳ Pending official update

### 2026 PIT Tax Brackets

Personal Income Tax brackets (both state and regional) **have not yet been officially published**.

**Current status:**
- Tax brackets have remained **unchanged for years**, creating the phenomenon known as "fiscal drag"
- With accumulated inflation, more taxpayers move into higher brackets without real purchasing power increases
- Although there are proposals and debates about deflation (inflation adjustment), **there is no official confirmation** that it will happen in 2026

**Expected publication:**
- Final brackets will be known with the approval of the 2026 General State Budget
- Typical timeline: between January and March of the fiscal year

Meanwhile, the calculator uses **2024 brackets** as reference for 2026 calculations.

### Personal and family minimums

The personal minimum (currently €5,550) and minimums for descendants, ascendants, and disability are also **pending official update**.

## 💡 Practical example

Let's compare a salary of **€70,000 gross** in Madrid:

### Social Security
- **2025**: €58,914 maximum base → €3,818 annual contribution
- **2026**: €61,214.4 maximum base → €3,979 annual contribution
- **Difference**: +€161 more annual contribution

### Solidarity Fee
This salary exceeds the maximum base, so it applies:
- Bracket 1 (61,214 - 67,336): (67,336 - 61,214) × 0.19% = €11.63/year
- Bracket 2 (67,336 - 70,000): (70,000 - 67,336) × 0.21% = €5.59/year
- **Total employee solidarity fee**: €17.22/year
- **2025** was: €12.67/year
- **Increase**: +€4.55/year

## 🔮 What to expect in the coming months?

We will be monitoring the BOE publication of:

1. **2026 General State Budget Law**
   - Final state PIT brackets (will be maintained or updated)
   - Personal minimums (likely no significant changes)

2. **Foral Laws (Navarra and Basque Country)**
   - Specific brackets for these foral territories

3. **Regional Budget Laws**
   - PIT brackets for each autonomous community

4. **2026 Minimum Wage Confirmation**
   - Final minimum contribution base

The calculator will be automatically updated when this official data is published. Stay informed!

## 📱 Try the calculator now

Don't wait any longer and discover how these changes will affect your net salary in 2026:

👉 [**Calculate my 2026 net salary**](/en/spanish-net-salary-calculator!new)

The calculator allows you to:
- ✅ Select fiscal year 2026
- ✅ See the impact of the new solidarity fee
- ✅ Compare with previous years
- ✅ Calculate by autonomous community
- ✅ Include flexible compensation
- ✅ View detailed tax breakdown

---

*Last update: December 17, 2025*

*Sources: Ministry of Inclusion, Social Security and Migration; Tax Agency*


Salary Calculator 2026 - Now Available with Latest Updates


## Compound Interest vs CAGR - Not the Same (But We Use Them Interchangeably)

There's a phrase repeated ad nauseam in the investing world: "Compound interest is the eighth wonder of the world" (supposedly said by Einstein, though probably not). The problem is that when we talk about stock market investing, **technically we're not talking about compound interest**. We're talking about CAGR.

So why does everyone keep using the term "compound interest" anyway? Because it's become the standard. It's incorrect, yes, but it is what it is. Let's unravel this little white lie of the financial world.

### What is compound interest really?

Compound interest is a mathematical concept applied to **fixed-rate debt instruments**. Think of:

- A savings account that gives you a guaranteed 2% annually
- A bond that pays a fixed 3% coupon annually
- A fixed-term deposit with a known interest rate

The magic of compound interest is simple: **you earn interest on your interest**. If you have $1000 at 5% annually:

- Year 1: $1000 × 1.05 = $1050
- Year 2: $1050 × 1.05 = $1102.50 (not $1100)
- Year 3: $1102.50 × 1.05 = $1157.63

The formula is straightforward:

**Final Value = Initial Capital × (1 + interest)^years**

The important thing here is that the **interest is known, fixed, and predictable**. You know exactly how much you'll have in 10 years.

### So what is CAGR then?

CAGR stands for **Compound Annual Growth Rate**. It's a measure used to calculate **the average annual return of an investment** whose value fluctuates.

The key difference: **CAGR is calculated backwards, looking at the past**. It doesn't predict the future, it simplifies the past.

Imagine you invest $1000 in stocks:

- Year 1: +20% → $1200
- Year 2: -10% → $1080
- Year 3: +15% → $1242

What was your average annual return? This is where CAGR comes in:

**CAGR = (Final Value / Initial Value)^(1/years) - 1**

**CAGR = (1242 / 1000)^(1/3) - 1 = 7.49% annually**

CAGR tells you: "If you had grown at a constant rate each year instead of having those ups and downs, you would have grown at 7.49% annually." It's a **useful simplification**, but it doesn't reflect the reality of what happened.

### The fundamental difference

Here's the crux:

| Concept | Compound Interest | CAGR |
|:---------|:-----------------|:-----|
| **Application** | Fixed-rate debt instruments | Investments with variable returns |
| **Direction** | Calculated forward (predictive) | Calculated backward (descriptive) |
| **Certainty** | You know the result in advance | You describe what already happened |
| **Volatility** | Doesn't exist, growth is linear | Simplifies actual volatility |
| **Example** | 2% annual deposit | Stock investment that went from $1000 to $1500 |

### Why do we misuse the term?

Because **it sounds good**. "Compound interest" has that air of mathematical magic that attracts. Plus, the formula looks the same on the surface:

- Compound interest: `1000 × (1.05)^10`
- Projected CAGR: `1000 × (1.08)^10`

Visually they're identical, but conceptually they're different worlds. In the first case, that 5% is **guaranteed**. In the second, that 8% is a **hope** based on historical data.

### The problem with applying compound interest to stocks

When someone says "If you invest $10,000 at 8% annually for 30 years you'll have $100,626," they're using the compound interest formula for something that **doesn't have a fixed interest rate**.

The stock market doesn't guarantee you 8% annually. It might give you +30% one year and -20% the next. The end result might be similar, but the journey is completely different. And that journey matters because:

1. **It affects your psychology**: Seeing your investment drop 40% hurts, even if it recovers "in the long run"
2. **Timing matters**: If you need the money in a bad year, you're screwed
3. **Volatility has a cost**: It's not the same to grow at a constant 8% as to go up 50% and down 30%

### So what term should we use?

Technically, when talking about stock market investing we should say:

- **"Annualized compound return"** (more precise)
- **"Historical CAGR"** (if talking about the past)
- **"Expected return"** (if projecting into the future)

But let's be realistic, everyone says "compound interest" and everyone understands what we're talking about.

### Conclusion: use the term, but understand the difference

Will I continue using "compound interest" when talking about stock market investing? Probably yes. Is it wrong? Technically yes. Does it matter?

**Yes, it matters to understand the difference**. Not because you need to correct everyone on the Internet (please don't), but because **it changes how you invest**:

- Compound interest is predictable → plan with certainty
- CAGR is descriptive → plan with uncertainty

When you project your retirement assuming a 7% annual "compound" return, you're not making an exact mathematical projection. You're making an **estimate** based on historical averages that may or may not hold true.

And that's fine, as long as you're aware of it.

So yes, keep using the term "compound interest" in your investment discussions. But keep in mind that you're simplifying. Reality is more volatile, more uncertain, and honestly, more interesting.

In the end, what matters isn't using the 100% correct term, but **understanding what's behind** that compound growth. And now, if someone corrects you at a family dinner because you said "compound interest" instead of "CAGR," you know what to say: "Technically you're right, but socially you're being annoying" 😄


Compound Interest vs CAGR - Not the Same (But We Use Them Interchangeably)


## Solidarity Fee 2025 - How Does It Affect My Salary?

In 2025, the government has introduced a solidarity fee for "high incomes" - those exceeding the maximum contribution base, which has increased to **€58,914** in 2025. If you don't want to read the details, go straight to the calculator where I've already included this new fee: [**Net Salary Calculator**](/en/spanish-net-salary-calculator!new).

### How is it calculated?

It's a tax that, similar to MEI, will increase progressively 🫠

The solidarity fee doesn't affect you if your gross salary is below the maximum solidarity quota of €58,914.

Otherwise, the following brackets apply:

| From      | To               | Total Rate | Employee | Employer |
| :-------- | :--------------- | ---------: | -------: | -------: |
| €58,914   | €64,805.4 (110%) |      0.92% |    0.15% |    0.77% |
| €64,805.4 | €88,371 (150%)   |         1% |    0.17% |    0.83% |
| €88,371   | ...              |      1.17% |    0.19% |    0.98% |

**Important**: The distribution between employer and employee maintains the same proportion as common contingencies contributions (83.39% employer and 16.61% employee).

From the maximum social security quota (€58,914) to "maximum quota + 10%" (€64,805.4), 0.92% total applies (0.15% employee + 0.77% employer).
From €64,805.4 to "maximum quota + 50%" (€88,371), 1% total applies (0.17% employee + 0.83% employer).
Finally, from €88,371 onwards, 1.17% total applies (0.19% employee + 0.98% employer).

### Example

Let's look at an example with a salary of €100,000 in Catalonia. Let's compare 2024 and 2025.

![Monthly salary of 100k in Catalonia at 2024 compared to 2025](/images/100k-catalunya-2024-2025.jpeg)

As we can verify, it drops from €5,320.61 to €5,310.55. Approximately €10 less net per month.

![Solidarity fee for 100k monthly salary in 2025 Catalonia](/images/100k-catalunya-2025-cuota-solidaridad.png)

### Future

Finally, let's see the planned evolution of this tax until 2045.

| Year | Rate up to additional 10% | Bracket between additional 10%-50% | Brackets additional >50% |
| ---: | ------------------------: | ---------------------------------: | -----------------------: |
| 2025 |                     0.92% |                              1.00% |                    1.17% |
| 2026 |                     1.15% |                              1.25% |                    1.46% |
| 2027 |                     1.38% |                              1.50% |                    1.75% |
| 2028 |                     1.60% |                              1.75% |                    2.04% |
| 2029 |                     1.83% |                              2.00% |                    2.33% |
| 2030 |                     2.06% |                              2.25% |                    2.63% |
| 2031 |                     2.29% |                              2.50% |                    2.92% |
| 2032 |                     2.52% |                              2.75% |                    3.21% |
| 2033 |                     2.75% |                              3.00% |                    3.50% |
| 2034 |                     2.98% |                              3.25% |                    3.79% |
| 2035 |                     3.21% |                              3.50% |                    4.08% |
| 2036 |                     3.44% |                              3.75% |                    4.38% |
| 2037 |                     3.67% |                              4.00% |                    4.67% |
| 2038 |                     3.90% |                              4.25% |                    4.96% |
| 2039 |                     4.13% |                              4.50% |                    5.25% |
| 2040 |                     4.35% |                              4.75% |                    5.54% |
| 2041 |                     4.58% |                              5.00% |                    5.83% |
| 2042 |                     4.81% |                              5.25% |                    6.13% |
| 2043 |                     5.04% |                              5.50% |                    6.42% |
| 2044 |                     5.27% |                              5.75% |                    6.71% |
| 2045 |                     5.50% |                              6.00% |                    7.00% |


Solidarity Fee 2025 - How Does It Affect My Salary?


## How is net salary calculated

Imagine you have a job offer, a tempting new annual gross salary, but what's the monthly net amount? What's the exact salary increase? Imagine being able to compare your current salary with your future one simply by dragging a slider. I bring you the solution:

💰 [**Net Salary Calculator**](/en/spanish-net-salary-calculator!new)

If you're like me, to calculate net salary from gross, you'd resort to the [first Google result](https://cincodias.elpais.com/herramientas/calculadora-sueldo-neto/!new). Constantly scrolling up and down, refreshing the page which, by the way, is barely usable on mobile.

And if you wanted to be precise, you'd create an Excel with the typical tax bracket table and calculate it manually:

![State IRPF Brackets](/images/tramos.jpg)

That's it, right? Well, no... to properly calculate the real net salary, there are many more details to consider.

One day I wanted to slay this dragon and understand as best as possible how it's calculated. While researching, I developed this [net salary calculator](/en/spanish-net-salary-calculator!new) to validate what I was learning.

### Basic knowledge first 🧑‍🏫

There's a kind of urban legend that says: _"If they raise your salary and you change tax brackets, you might end up earning less."_ I've heard it several times and it perfectly explains how little financial education there is in schools. I guess learning that someone parted the seas and multiplied bread is more important... well, I'm getting off track.

NO.

**It's impossible for a salary increase to result in earning less net income**. The brackets are cumulative. Example, let's imagine that Paco earns €30,000 gross per year:

The first €12,450 has 19% withholding.
What's between €12,450 and €20,200, that is, the next €7,750 has 24% withholding.
Finally, the difference between €26,059 and €20,200 => €5,895 has 30% withholding.

The first part of the salary will always have a lower withholding and increases progressively in each bracket. I've tried to show this through graphs in the [calculator](/en/spanish-net-salary-calculator!new), try it out.

![Explained Brackets](/images/tramosExplicados.png)

### Expenses 🚗

If you've been reading carefully, you'll have noticed that in the last subtraction I didn't use €30,000 but €26,059. One of the reasons is expenses.

There's a minimum expense of €2,000, all calculations must be made by initially subtracting this value from the gross, in Paco's case, after subtracting expenses we're left with €28,000. But this figure still isn't €26,059, what's missing? Social Security.

### Social Security 🏥

Besides expenses, another concept to deduct before calculating IRPF is Social Security. This should be easy, it's 6.47% but with a nuance, [there's a minimum and maximum](https://www.campmanyabogados.com/blog/bases-cotizacion!new). The maximum is reached at €56,646 gross annually, all salaries above that pay the same. The minimum\* is €15,876 gross annually. All this data applies to 2024. They've been increasing each year.

Paco has a Social Security payment of €1,941 which if we subtract from €28,000 we already have the figure I used in the previous calculation. Let's name everything.

### Taxable Base

`Taxable Base = Gross Salary - Expenses - Social Security`
`€26,059 = €30,000 - €2,000 - €1,941`

### State and Regional IRPF

Now yes, with the taxable base we can calculate the IRPF.

Online calculators usually only show you some IRPF brackets. Those brackets are the state ones and apply to everyone except Basques and Navarrese. What we don't usually take into account is that each autonomous community has its brackets, and they're ALL different. [Check the breakdown of IRPF brackets for each autonomous community in Spain in the corresponding tab](/en/spanish-net-salary-calculator!new).

![IRPF brackets for each community](/images/tramos-comunidades.png)

The typical State table only applies to non-resident Spaniards, if you reside in Spanish territory, your community's table and the state table are used (**with half the percentage in each bracket**). Notice in the image how the state percentages are now 9.5%, 12% and 15% instead of 19%, 24% and 30%.

![State and Catalan IRPF brackets](/images/IRPF-estatal-y-autonomico.png)

I've added the option to see the aggregated brackets, to make it visually easier to see the different brackets that apply to you.

![Aggregated State and Catalan IRPF brackets](/images/IRPF-estatal-y-autonomico-agregados.png)

We could calculate the IRPF but first, let's talk about deductions.

### Deductions

You might be familiar with the figure €5,550. It's the deductible minimum. In the most common case, single person without children etc., they have that deductible minimum. To deduct it, brackets are also applied. That is, to know how much we can deduct if we live in Catalonia we have to apply both the state and autonomous community brackets to the figure to be deducted. Example:

€5,550 is in both the first State bracket (up to €12,450) and Catalonia's (up to €12,450), therefore the first bracket rate applies:

- State 9.5% - €527.25
- Catalonia 10.5% - €582.75

The total state taxes are reduced by the calculated deduction, same with the autonomous community.

`IRPF = IRPF taxable base (brackets) - deductions (brackets)`

This is the standard case, deductions increase for each child, for each dependent ancestor, etc. I've included most of these cases in the [net salary calculator](/en/spanish-net-salary-calculator!new).

Let's imagine Paco has twins, 2 children under 3 years old. Well, the deductions increase to:

- State 4.66% - €1,035.5
- Catalonia 5.2% - €1,144.5

The resulting monthly net salary with 12 payments is €2,007.45, which compared to the salary without children (€1,918.29) results in €89.16 more per month for having two children under 3 years old, not sure if it's enough for diapers 😄.

I've added this data in the calculator

![Deduction Benefit](/images/beneficio-deduccion.png)

_Keep in mind that I'm assuming Paco makes an individual tax declaration, therefore the deduction is 50%. If he files jointly (only married couples), he gets 100%, double the deduction than individual._

### The Formula 🎉

The final formula for calculating your net salary is as follows:

`Net Salary = Gross Salary - Expenses - Social Security - State IRPF - Regional IRPF`

With the nuances already mentioned:

- IRPF and its deductions are calculated on the taxable base and with the corresponding brackets.
- There's a minimum and maximum for Social Security.

I hope to have clarified a bit how this calculation works, it's important to know this information.

Details like MEI, flexible compensation, Beckham Law, etc. are missing. I'll explain them in future entries.

### Sources

- [IRPF tables by autonomous communities](https://www.businessinsider.es/tablas-irpf-comunidades-autonomas-cuanto-pagas-renta-625415)
- [How the IRPF percentage is calculated](https://ekuatio.com/como-se-calcula-el-porcentaje-de-irpf-en-la-nomina/)
- [Withholding calculation](https://www2.agenciatributaria.gob.es/wlpl/PRET-R170/index.zul)
- [How much you can deduct on your taxes for your children](https://www.finect.com/usuario/Josetrecet/articulos/hijos-declaracion-renta)


How is net salary calculated


## How Mortgages Work

I have this silly habit of wanting to better understand things that affect me. These last few months I've been working on a calculator for monthly mortgage payments. Or in short, which has better SEO:

🏠 [Mortgage Calculator](/en/mortgage-calculator!new).

I've had a mortgage for a year and a half and it's quite a world. When I started looking for banks and asking friends, you realize there are many myths and beliefs. The ones that surprised me the most were:

### The "variablelivers"

At the time I took out my mortgage, interest rates were rock bottom and had been for years. You could get fixed-rate mortgages at just over 1% interest. Yet still, many friends recommended variable rates. The variable-rate enthusiasts had their mantra: "The Euribor won't go up!" How quickly things got complicated for them...

**Historical Euribor values**

|Year| Value|
|2022| 3.018%|
|2021| -0.487%|
|2020| -0.481%|
|2019| -0.272%|
|2018| -0.147%|
|2017| -0.189%|

### Always Pay Extra!

Another very common species has a commandment they preach: "As soon as you save something, pay extra!" "You have to get rid of the loan as soon as possible!" Well, not always. And my own case serves as an example. My mortgage is 1.6% fixed rate. As I write these lines, there are deposits at 2%. I earn ~0.4% annually without risk. Should I pay extra? Really? Then there's inflation - everything will be more expensive in 30 years, I'll also earn more (hopefully), but what about the monthly payment? It will be the same. **In the end, paying extra is simple: if you have money just sitting idle in your account, pay extra. If you can get better returns than your mortgage interest, don't pay extra.**

### Those with ultra-low rates. Master negotiators.

Finally, I also met some who had very, very low rates, and I was surprised - how did they manage that? When you scratch the surface a bit, you discover the truth. They had contracted everything with the bank, even the house alarm! Home insurance, alarm system, life insurance, payment protection insurance - who offers more? And all these insurances included in the total debt, earning their good interest on them too. The real monthly cost of the mortgage was very different from just accounting for the interest rate. I'll talk about that later but spoiler: the insurance policies offered by banks are more expensive and worse (combo deal).

Whatever the case, if what I'm telling you sounds like Greek to you, stick around and I'll try to resolve your doubts. Open the [Mortgage Calculator](/en/mortgage-calculator!new) in another browser tab and start playing around.

![Different mortgage expenses](/images/diferentes-gastos-hipoteca.png)

### French Loan System 🇫🇷

Mortgages in Spain use the French loan system. The nice thing about this type of loan is that the payments are the same throughout the life of the loan, which helps avoid unexpected changes, etc. This has made them the most common. This brings me to another widespread myth: "In mortgages, you pay much more interest at the beginning than at the end" and well, while it's true that you pay more, the only reason is because you owe more! If the payment is always the same and at the beginning you owe the bank EVERYTHING, it's normal to pay more interest. Let's look at an example to understand it better.

![Amortization table](/images/grafico-amortizacion-hipoteca.png)

Imagine a loan of 100,000 for 10 years, with a 1% interest rate. Round numbers to make calculations easier. The interest is annual, so the first year you have to pay the bank 1% of 100,000€. That's 1,000€. Divided by 12 months, 83.3€ monthly. The rest of the payment is the debt that you're reducing, in this case 876.04€ - 83.3€ = 792.74€ monthly. 9,512.88€ annually.

Now let's go to year two. The debt is now the result of subtracting what was paid in the first year from the initial debt, that is 100,000€ - 9,512.88€ = 90,487.12€. **The second year's interest is then 1% of this figure, which is 904.87€. Only 75.41€ each month. It has decreased by about 8 euros compared to the previous year (83.3€)**. Can you see the trend? Each year you pay less interest because you're reducing your debt.

### The Down Payment

As a general rule, the bank will give you a mortgage for a maximum of 80% of the property's value. This value is obtained through appraisal. If the sale price is lower than the appraisal value, that price will be used. Always the minimum of these values (sale or appraisal). Moreover, the 80% is given if it's your first home, where you'll be registered as a resident. For a second home, the maximum mortgage value is 70%.

### Fixed, Variable, or Mixed Rate

When you take out a mortgage, you can choose fixed or variable rate (mixed is a combination of both). Fixed rate, as the name suggests, is decided at the beginning of the loan and doesn't change anymore. It can only change if you have bonuses for having your salary paid into the account, etc., and you stop meeting these conditions.

Variable rate depends on the famous Euribor. I won't go into detail about what the Euribor is, but think of it as a reference index that can go up or down, and your mortgage interest will depend on it. For example, imagine you have a mortgage where your interest is "Euribor + 0.5%". Well, if the Euribor is at 3%, your annual interest will be 3.5%. Usually, the interest is recalculated every 6 months or annually.

The million-dollar question, which is better? The answer depends on the general economic context and your particular case. No one knows in advance which will be better, so it comes down to choosing between the risk of variable or the peace of mind of fixed. Also, remember that you can change your mortgage to another bank during the loan term. Imagine you take out a mortgage at a high fixed rate and then the Euribor drops significantly. Banks will start offering mortgages with better conditions than yours, and you can switch. It's called refinancing. It's also likely that if you show your bank you're planning to leave, they'll improve your conditions.

### Property Purchase Taxes - VAT or Transfer Tax

Two things are certain in life: death and taxes. Did you think you wouldn't pay taxes for buying a property? Of course you do, and not a small amount. If the property is new, it's simple - it's 10% VAT. If it's a resale property, things get more complicated. Like with income tax, each region does as it pleases, and Madrid wins again with just 5%. I show a comparison by region and the taxes for all regions in a tab of the calculator.

![Transfer tax by region](/images/ITP-por-comunidad.jpeg)

### Notary and Other Expenses

Finally, there are notary fees, real estate agency fees if you use one, etc. It's very difficult to estimate because it depends a lot on the case. In the calculator, I've put 0.5%, but it can vary greatly depending on the property value.

### Health, Life, and Extra Insurance - Compare Well

So far we've seen the mandatory expenses. But the bank always wants more. Since they earn so "little" from the mortgage, they try to sell you various insurance policies. These insurances give you bonuses and lower your interest rate. You need to do the math, don't rush and calculate if it's worth it. In most cases, it's better to contract insurance (if you need it) on your own. The only mandatory insurance is home insurance, nothing else. In my case, they forced me to contract home insurance with them for the first year. The following year I cancelled it and got better insurance with over 100 euros in savings. Repeat after me: mortgages from banks, insurance from insurers.

What I'm sure is never worth it is including the cost of all years' insurance policies within the mortgage loan. You'll pay unnecessary interest. To make calculations easier, I've included this section in the calculator where you can see how these extra insurance policies affect the monthly payment.

![Calculate extra expenses](/images/gastos-extras-hipoteca.png)

### Early Repayment

Early repayment means advancing payment of your debt to reduce it. There are two types of repayment. One option reduces the loan term (fewer months) and the other option reduces the monthly payment. The option that saves more interest is reducing the loan term, but it's a matter of preference. Maybe it's better to reduce a very high payment that's strangling us. In the [Mortgage Calculator](/en/mortgage-calculator!new) you can compare both options.

![Repayment calculation](/images/calculo-amortizacion-hipoteca.png)

### Conclusion

This concludes this brief introduction to mortgages. It's possibly the most important loan a person takes out in their life, so it's worth understanding it well.


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