Tax Rates for 2018/19

Canary Island rates for 2019

The lower income tax brackets have been reduced from 9.5% to 9% (for income up to €12,450 and from 12% to 11.5% (for income between €12,450 and €17,707).

This is just the portion of income tax applicable in the Canary Islands, the state portion of the rates is yet to be pubished (23/1/2019)

The rest of the Canary Island tax brackets remain the same (up to 24%, this top rate applying to income over €90,000) and they will all need to be added to the state rates once these are available to arrive at the final applicable income tax rates for residents of the Canary Isles.

Income Tax 2018

From (Euros) To (Euros) State tax % Regional tax % Total tax %
0 12,450 9.50 9.50 19.00
12,450 20,200 12.00 12.00 24.00
20,200 35.200 15.00 15.00 30.00
35,200 60,000 18.50 18.50 37.00
60,000 + 22.50 22.50 45.00

Capital Gains Tax Rates

Residents
First 6,000 Euros: 19%
6,000 – 50,000 Euros: 21%
50,000 + Euros: 23%
Non-residents 19%

Allowable Depreciation

Straight line method can be used for any depreciable asset. Reducing balance method can be used for new tangible assets with estimated useful life of at least 3 years

Maximum straight Line rate % Maximum Useful Life years
Buildings and other
constructions
3 68
Tools 30 8
Motor vehicles 16 14
Fixtures & Fittings /
Office Equipment
10 20
Machinery 12 18
Computers 25 8