Taxes
Spain — Tax: VAT (IVA)
Spain's VAT (Impuesto sobre el Valor Añadido, IVA) has a standard rate of 21%, applying to most goods and services. A reduced rate of 10% applies to items such as hospitality, passenger transport, and certain foodstuffs. A super-reduced rate of 4% applies to basic necessities including bread, milk, books, and prescription medicines. Some transactions (e.g. exports, certain healthcare and education services, financial services) are VAT-exempt at 0%. VAT is administered by the Agencia Estatal de Administración Tributaria (AEAT).
Key facts
- Standard VAT rate: 21%, applying to most goods and services.
- Reduced rate: 10%, covering hospitality, passenger transport, and certain foodstuffs.
- Super-reduced rate: 4%, covering bread, milk, books, and prescription medicines.
- Certain exports, healthcare, education, and financial services are VAT-exempt (0%).
Costs
- Standard rate: 21%
- Reduced rate: 10%
- Super-reduced rate: 4%