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Spain vs Ethiopia
Tax Rate Comparison

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

🇪🇸 Spain
vs
🇪🇹 Ethiopia
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
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–21%
Basic food VAT returning toward normal rates
No change
15%
15% standard
No change

Corporate Tax Rate

Corporate Tax Rate
25%
25% standard; digital services levy discussions
No change
30%
30%; industrial parks offer incentives
No change

Capital Gains Tax

Capital Gains Tax
19–28%
Progressive savings tax maintained
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
~37.2%
MEI surcharge continues gradual increase to 2032
+0.2pp vs 2025
~17%
Pension expansion targeted
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.

🇪🇹 EthiopiaRegional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

⚠️ 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 Ethiopia: Key Tax Differences (2026)

💰 Income Tax: 🇪🇸 Spain has a higher top income tax rate (19–47% vs 0–35%). 🇪🇹 Ethiopia is more favourable for high earners.

🛒 VAT/Sales Tax: Spain has a higher consumption tax (4–21% vs 15%).

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

📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 28%), benefiting investors.

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