I receive RSUs or Stock options from my company, do I have to pay taxes in Spain if I receive them from my company?
If you are a tax resident in Spain, you must pay taxes on your worldwide income. Therefore, if you receive RSUs/stock options from your company, as a general rule, these will be considered as employment income on the vesting/exercise date.
Your employer should withhold the applicable taxes and should report the taxable compensation to tax authorities through your annual wage certificate.
If you sell the shares at a later stage, it should be reviewed if a capital gain arises. This is normally the case if the sale price is higher than the acquisition price.
Why does my net pay change during the tax year?
There are a number of reasons why your net pay could change during the year, but this usually happens when there is a variation in your personal or family circumstances or your annual remuneration changes, so the employer can modify the withholding rate according to your new circumstance, so the net amount you receive in your salary will vary.
If I’ve overpaid withholding tax during the year, when and how will I receive any tax refund?
If you file a Spanish tax return and you are entitled to a refund, as a general rule, the tax authorities have up to 6 months to review it and ask for additional documents/explanations or issue the refund directly.
Do tax brackets change depending on the Autonomous Community of residence in Spain?
Yes, the Personal Income Tax rate comprise a state (federal) component and an autonomic (regional) component, the latter being approved by the Autonomous Community government of the taxpayer's habitual abode. Accordingly, the Personal Income Tax rates vary widely from one region to another. For example, marginal tax rate in Madrid is 45%; while marginal tax rate in Catalonia is 50%.
What is the maximum amount that an employee would generally each month as Social Security contributions?
The employee’s Social Security general rate is 6,47% but has a monthly cap of income on which contributions are payable (current cap is 4.720,50 euros). Therefore, the maximum amount that an employee would generally pay under the general regime is around 305 euros per month.