What is the Autonomo Tax Liability? How much tax will you pay?
Find here some guidelines that can help you anticipate your business tax liability along with a link to a Web App that you can do you own calculations.
Your business tax liability is calculated in relation to your business results or profit.
incomes – business expenses = profit
Out of the resulting amount you have to pay 20% initially. This is, every 3 month period you have to file the resulting tax or, if nil, report your balance.
This amount, if applicable, is only a “payment in advance” against your real tax liability that will be calculated sometime after the end of the tax year. Then, your business tax liability will be put together with other incomes and allowances that you may have resulting in your final tax bill.
Once that is computed you either
1) Apply for a tax rebate (if you overpaid.)
2) Make an extra tax payment, if needed.
YOUR GLOBAL TAX RATE
The variable rates applicable to the taxable amount resulting from all your personal and business matters (after allowances and deductions are computed) can be seen in the tables below.
Income Tax in Spain varies slightly from one autonomous region to the other. The table is a pretty good approximation.
IRPF (Personal Income Tax) Scale
|Taxable Base (up to)||Tax||Rest ( up to)||Tax Rate|
|0,00 €||0||12450.00 €||19%|
|12450 €||2365.50€||20200.00 €||24%|
|20200.00 €||4225.50€||35200.00 €||30,00%|
|35200.00 €||8725.50€||60000.00 €||37,00%|
How does it work?
As we cannot explain here how the calculations will be affected by allowances and other reductions, we ignore these things for simplicity.
Suppose that we consider a profit or business result of 20,000€.
Lines 2 tells us that we will pay 2365,50€ for the first 12450,00€ of profit.
The rest up to 20,000€, (that is; 20,000 – 12450.00 = 7550.00) is taxed at 24%.
So this is the result:
|Taxable Base (up to)||Total Tax||Rate|
|total income||total tax||Gobal tax rate:|
Notice that 4177€ is the 20.88% of 20,000€
As you only paid 20% in advance, in this simulation you would get a tax bill for the difference at the time of submitting the annual tax return.
As explained earlier, a business result of 20,000€ will not end up in a taxable amount of 20,000€ after your allowances are taken into account.
These allowances will depend on your family circumstances, disabilities, etc…
You can work out your tax liability considering your family circumstances using our Web App:Estimate your Income Tax
Learn about your allowances in this article.