A tax is a kind of tribute established by law that individuals and companies pay for the obligatory to the Administration. It was intended to finance public expenditure.

Types of taxes

The taxes are divided into:

·  Direct tax are those levied on income and property of a person. Most are progressive because their amount is based on the income and wealth of who pays. They are direct taxation of income tax or tax Heritage.

·  Indirect tax are those levied on the movement of goods and services. Its tax rate is constant, ie, the amount does not vary depending on the economy of each individual. They are indirect VAT, which usually accounts for 16% and ITP of between 6% and 7% depending on the Autonomous Community.

Income Tax for Individuals

The personal income tax is a type of direct tax that is imposed on the assets and income of individuals in the course of a calendar year.

The personal income tax is reflected in the statement of income. It is a document that reflects the wealth and income of a person in a year. In light of all this it is estimated the amount of tax, which ranges between 0% and 43%.

Value Added Tax

The VAT is an indirect tax that applies to purchase a good or service. The percentage varies depending on goods and services. To calculate the VAT did not take into account the income or wealth of the people who must pay.

This tax is applied on the Iberian peninsula and the Balearic Islands. In Navarra and the Basque Country tax has some special characteristics. In Canary VAT is replaced by the General Indirect Tax Canario (IGIC).

The VAT is usually paid by the final consumer. Depending on the type of product or service VAT varies. The overall percentage and the most applied is 16%. The low was 7%, which corresponds to the hospitality and books among others. The super reduced up to 4% and applies for example to vehicles of the disabled.

Tax Registration

It is the kind of tribute that is paid to register a vehicle for the first time in Spain. This expenditure falls on the owner of the vehicle.

It is a tax compulsory for all those who buy a new car or a second-hand car purchased in a foreign country. The second-hand vehicles already registered in Spain are not required to re-enroll.

Income Tax Non-Residents

The IRNR is a direct tax levied on income earned in Spain

by natural and legal persons not resident in Spain. It is considered non-resident to any person or entity that does not comply with any of the following characteristics:

·  Stay more than 183 days in a calendar year in Spain.

·  The core of the economic activities of the natural or legal person residing in Spain.

·  The spouse or dependent children of the natural person resident in Spanish territory.