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Spain vs El Salvador
Tax Rate Comparison

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

🇪🇸 Spain
vs
🇸🇻 El Salvador
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
19–47%
National rates stable; community variation continues
No change
0–30%
30% top; security improvements boosting economy
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–21%
Basic food VAT returning toward normal rates
No change
13%
13% IVA stable
No change

Corporate Tax Rate

Corporate Tax Rate
25%
25% standard; digital services levy discussions
No change
30%
30%; special economic zones
No change

Capital Gains Tax

Capital Gains Tax
19–28%
Progressive savings tax maintained
No change
10%
10% maintained
No change

Social Security & Payroll

Social Security / Payroll
~37.2%
MEI surcharge continues gradual increase to 2032
+0.2pp vs 2025
~15.5%
AFP system; pension adequacy improving
No change
State, Regional & Local Taxes

🇪🇸 SpainAutonomous 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 económico). 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.

🇸🇻 El SalvadorMunicipal Taxes

El Salvador's 262 municipalities levy local taxes including the impuesto municipal de activo empresarial (business assets tax at 0.1%–1% of net assets), commercial licence fees, and property registration fees. San Salvador municipality has the highest rates. The Ministry of Finance (MH) administers national taxes. El Salvador adopted Bitcoin as legal tender in 2021 (alongside USD), creating unique crypto tax considerations, though the Bitcoin Law was modified in 2025. The country has attracted significant nearshoring and blockchain sector investment.

⚠️ 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.

Spain vs El Salvador: Key Tax Differences (2026)

💰 Income Tax: 🇪🇸 Spain has a higher top income tax rate (19–47% vs 0–30%). 🇸🇻 El Salvador is more favourable for high earners.

🛒 VAT/Sales Tax: Spain has a higher consumption tax (4–21% vs 13%).

🏢 Corporate Tax: 🇪🇸 Spain offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇸🇻 El Salvador taxes investment gains at a lower rate (10% vs 28%), benefiting investors.

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