Mexico vs Spain
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฒ๐ฝ Mexico โ State & Municipal Taxes
Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre Nรณmina) at 1%โ4% (employer-paid). Municipal property tax (predial) rates vary significantly. Some states have lodging and entertainment levies. The Maquila sector benefits from special IMMEX programs. Nearshoring boom is driving new investment.
๐ช๐ธ Spain โ 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 econรณmico). 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.
Mexico vs Spain: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ธ Spain has a higher top income tax rate (1.92โ35% vs 19โ47%). ๐ฒ๐ฝ Mexico is more favourable for high earners.
๐ VAT/Sales Tax: Spain has a higher consumption tax (0โ16% vs 4โ21%).
๐ข Corporate Tax: ๐ช๐ธ Spain offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ช๐ธ Spain taxes investment gains at a lower rate (28% vs 35%), benefiting investors.