Lower income tax in Andalucía from 2023

lower income tax

The regional government continues to bring down taxes this year and the latest announcement provides potential tax relief for thousands of residents. Income tax in Andalucia in certain earnings brackets is to go down by 4.3% from the 2023 tax year. It accompanies the abolition of wealth tax in the region.

What does the lower income tax in Andalucia entail? 

The regional government has announced a reduction in income tax for residents in Andalucia, applicable from the 2023 tax year. The regional proportion collected for income tax will go down by 4.3% for taxpayers whose annual earnings fall in the €12,450 to €35,200 tax brackets

Read about other income tax breaks in Andalucia 

What is the regional proportion of income tax? 

Income tax for residents in Spain is levied at two levels: national and regional. Each receives 50% of income tax collection. In the case of Andalucia, 50% is for the region. 

How does Andalucia apply income tax?

For the current tax year (2022, payable in 2023), Andalucia has eight income tax bands. The lowest is 9.5%, applicable on earnings under €12,450 and the highest, 23.7%, levied on income in excess of €120,000. 

The latest reduction in income tax in Andalucia affects residents whose tax bill falls between €12,450 and €35,200. Their tax bands for the tax year 2023 will fall by 4.3%. 

Looking for tax representation in Spain?

Is this reduction limited to the above earnings brackets?

For the moment, yes, although Andalucia introduced lower rates for income tax for the current tax year. In this case, the reductions were for taxable income over €28,000. 

These bands will continue to fall next year as well. For the 2022 tax year, the highest income tax rate in Andalucia will be 22.5%. 

When does the reduction apply?

The 4.3% lower income tax in Andalucia comes into effect for the tax year 2023. In practice, this means it will apply to tax returns made from April to June in 2024 for the previous tax year (2023). 

What’s next?

Taxation is a complicated subject in any country and even more so if you don’t speak the language. To ensure you obtain maximum benefit from the latest lower income tax in Andalucia and only pay the tax you should, get in touch with our expert team.

2 thoughts on “Lower income tax in Andalucía from 2023”

  1. Hello there ,

    I am a foreigner thinking to move to Malaga if my income is 480,000 Euros per year how much would my personal income taxes be ? Is it 45%


      Dear Riyaan,

      Thank you for reaching out.

      Regarding the above-mentioned matter, we would like to inform you that your tax return depends on your personal situation and costs. You may also have some deductions.
      In due time, we can help you with your tax return.

      Please do not hesitate to contact us with any queries you might have.

      Kind regards,

      Mar Durio

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