Spain's income tax brackets frozen for 11 years: the hidden rise you already pay
Spain's IRPF income tax brackets have not been updated since 2015. With inflation, middle earners are taxed like the rich. We calculate the extra cost: up to €2,200 a year.
English · Original discussion in Spanish · Published
Spain's income tax brackets frozen for 11 years: the hidden rise you already pay
Did you know that Spain's IRPF income tax brackets have not been updated since 2015? Eleven years on, cumulative inflation exceeds 30%. The result: you pay as if you were rich even though your salary is worth the same as before.
The government boasts about not having raised taxes, but the reality is stubborn. Without adjusting for inflation, a worker earning €30,000 gross a year pays €800 more in income tax than they would with inflation-adjusted brackets. Someone earning €40,000 pays €1,200 extra; someone on €60,000, €2,200. It is no coincidence: it is the biggest silent tax rise in recent fiscal history.
What's more, the personal and family allowance has been stuck at €5,550 for eleven years, while the minimum wage now stands at €8,803. That means low earners who were previously exempt now pay tax. And to top it off, the MEI (Intergenerational Equity Mechanism) and the solidarity contribution have been added. The tax burden has soared without a single new rate being approved.
The worst part is that nobody in the government seems willing to act. With inflation eating away at purchasing power and the tax office growing fatter, the taxpayer's only consolation is knowing that, at least, their taxes haven't been raised. Ironic, isn't it?
Did you know that Spain's IRPF income tax brackets have not been updated since 2015? Eleven years on, cumulative inflation exceeds 30%. The result: you pay as if you were rich even though your salary is worth the same as before.
The government boasts about not having raised taxes, but the reality is stubborn. Without adjusting for inflation, a worker earning €30,000 gross a year pays €800 more in income tax than they would with inflation-adjusted brackets. Someone earning €40,000 pays €1,200 extra; someone on €60,000, €2,200. It is no coincidence: it is the biggest silent tax rise in recent fiscal history.
What's more, the personal and family allowance has been stuck at €5,550 for eleven years, while the minimum wage now stands at €8,803. That means low earners who were previously exempt now pay tax. And to top it off, the MEI (Intergenerational Equity Mechanism) and the solidarity contribution have been added. The tax burden has soared without a single new rate being approved.
The worst part is that nobody in the government seems willing to act. With inflation eating away at purchasing power and the tax office growing fatter, the taxpayer's only consolation is knowing that, at least, their taxes haven't been raised. Ironic, isn't it?
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (17 replies).
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