WorldTax Compare← All Comparisons

Germany vs Spain
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡ͺπŸ‡Έ Spain
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
19–47%
National rates stable; community variation continues
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
4–21%
Basic food VAT returning toward normal rates
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
25%
25% standard; digital services levy discussions
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
19–28%
Progressive savings tax maintained
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~37.2%
MEI surcharge continues gradual increase to 2032
β–² +0.2pp vs 2025
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡ͺπŸ‡Έ Spain β€” Autonomous Community & Municipal Taxes

Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econΓ³mico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Spain: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ͺπŸ‡Έ Spain has a higher top income tax rate (14–45% vs 19–47%). πŸ‡©πŸ‡ͺ Germany is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Spain has a higher consumption tax (7–19% vs 4–21%).

🏒 Corporate Tax: πŸ‡ͺπŸ‡Έ Spain offers a lower corporate rate (25% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡©πŸ‡ͺ Germany taxes investment gains at a lower rate (25% vs 28%), benefiting investors.

Related Comparisons

πŸ‡©πŸ‡ͺ Germany vs πŸ‡¦πŸ‡Ί AustraliaTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡¦πŸ‡Ή AustriaTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡§πŸ‡­ BahrainTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡§πŸ‡ͺ BelgiumTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡§πŸ‡· BrazilTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡§πŸ‡¬ BulgariaTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡¨πŸ‡¦ CanadaTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡¨πŸ‡³ ChinaTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡­πŸ‡· CroatiaTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡¨πŸ‡Ύ CyprusTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡¨πŸ‡Ώ Czech RepublicTax comparisonπŸ‡©πŸ‡ͺ Germany vs πŸ‡©πŸ‡° DenmarkTax comparison