France vs Spain taxes (2026): income, capital gains and wealth tax

France vs Spain tax rates at a glance

Tax	🇫🇷 France	🇪🇸 Spain
Income tax	Tax-free band: EUR 11,600 Entry rate: 11% Top rate: 45% Exceptional high-income contribution: 3% / 4% Employment social charges: Material Investment flat tax (PFU): 31.4%	Personal income tax: 19% - 54% Reference employment scale: 19% - 47% Top marginal rate: About 54% Savings income: 19% - 30% Impatriate regime: 24% to EUR 600,000 Employee social security: About 6.5%+
Corporate tax	Standard corporate tax: 25% SME reduced rate: 15% on first EUR 42,500 Social contribution on CIT: 3.3% IP Box reduced rate: 10% QDMTT / Pillar Two: 15%	Corporate tax: 25% 2026 micro-enterprise first EUR 50,000: 19% 2026 micro-enterprise remainder: 21% 2026 small entities: 23% New companies and start-ups: 15% Credit institutions and certain hydrocarbons: 30% Canary Islands ZEC regime: 4% Pillar Two minimum: 15%
Capital gains tax	Securities PFU: 31.4% PFU income-tax component: 12.8% PFU social levies: 18.6% Real-estate income tax: 19% Full property IR exemption: 22 years Full property social exemption: 30 years	Individual capital gains: 19% - 30% Crypto gains: 19% - 30% Property gains: 19% - 30% Non-resident asset-transfer gains: 19% Non-resident property-sale withholding: 3% Exit-tax ownership threshold: >25% and EUR 1m
Dividend tax	Resident PFU total: 31.4% PFU income tax: 12.8% PFU social levies: 18.6% Non-resident individual WHT: 12.8% Progressive election: Optional Common dividend allowance on progressive route: 40%	Resident dividend tax: 19% - 30% Dividend WHT: 19% Corporate participation exemption: 95% of qualifying dividend Non-resident domestic withholding: 19% Standard corporate tax before distribution: 25%
Wealth tax	General net wealth tax: 0% IFI threshold: EUR 1,300,000 EUR 800,001 to EUR 1,300,000: 0.50% EUR 1,300,001 to EUR 2,570,000: 0.70% EUR 2,570,001 to EUR 5,000,000: 1.00% EUR 5,000,001 to EUR 10,000,000: 1.25% Above EUR 10,000,000: 1.50%	Wealth tax: 0.2% - 3.5% State minimum exemption: EUR 700,000 Principal residence exemption: Up to EUR 300,000 Large-fortune solidarity tax: 0% / 1.7% / 2.1% / 3.5% Wealth Tax filing threshold: Gross assets over EUR 2m
Inheritance / estate tax	Spouse / PACS partner: Exempt Children / parents: 5% - 45% Child allowance: EUR 100,000 Siblings: 35% / 45% Distant relatives / unrelated: 55% / 60%	Inheritance tax: 7.65% - 34% Gift tax: 7.65% - 34% Group I state allowance: EUR 15,956.87+ Group II state allowance: EUR 15,956.87 Group III state allowance: EUR 7,993.46 Group IV state allowance: None State fallback effective ceiling: Up to 81.6%
VAT / GST / sales tax	VAT: 20% / 10% / 5.5% / 2.1%	VAT: 21% / 10% / 4%
Other key taxes	None listed on country overview	Reference employment scale: 19% - 47%

Who wins on each tax

Personal income taxFrance

France's national scale tops at 45%, below Spain's possible combined regional rate of about 54%; payroll social charges make the net-pay comparison fact-specific.

Corporate taxTie

Both headline rates are 25%, but France has a 15% SME band and Spain has 2026 micro-enterprise, small-company and start-up rates.

Capital gains taxSpain

Spain's savings-income gains scale is 19%-30%, usually below France's 31.4% securities PFU; Spanish property and municipal taxes need separate modelling.

Dividend taxSpain

Spain generally taxes resident individual dividends at 19%-30%, versus France's 31.4% PFU, with corporate participation exemptions subject to conditions.

Wealth taxFrance

France's IFI targets non-professional real estate above EUR 1.3 million; Spain has annual Wealth Tax and a separate large-fortune solidarity tax.

The verdict

France's ordinary scale tops out at 45%, while Spain's combined IRPF can reach about 54% depending on the autonomous community. France still adds social charges and a high-income contribution.

Spain is usually friendlier for securities income: its savings scale is 19%-30%, compared with France's 31.4% PFU from 2026. Spain's regional wealth taxes can reverse the advantage for wealthy residents.

Choose France for a salary-heavy move or a portfolio not dominated by Spanish real estate; choose Spain when savings-income rates or a qualifying inbound-worker regime matter more. Residence, treaty and CFC analysis remains essential.

How to read this comparison

France and Spain are both substantial EU tax systems. The practical choice is usually between France's stronger treatment of ordinary high income and Spain's lower savings-income rates, but residence, region, substance and treaty access decide the real outcome.

Frequently asked questions

Is France or Spain lower tax?

Spain is often lower on securities gains and dividends, while France can be lighter on the top ordinary income rate and broad financial wealth. Region, social security and property ownership can change the result.

Does Spain's wealth tax apply everywhere?

Spain's Wealth Tax and regional bonuses vary by autonomous community, and large fortunes can also face the state solidarity tax. The region, assets and residence status must be checked.