Germany vs Spain taxes (2026): income, corporate and investment tax

Germany vs Spain tax rates at a glance

Tax	🇩🇪 Germany	🇪🇸 Spain
Income tax	Basic allowance: EUR 12,348 Entry rate: 14% Top rate: 45% Solidarity surcharge: 5.5% Church tax: 8% / 9% Employee pension, unemployment, health and care contributions: Capped	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	Corporation tax: 15% Solidarity surcharge: 5.5% Trade tax base rate: 3.5% Trade tax effective range: 7% - 20.3% DMTT / 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 gains tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Saver allowance: EUR 1,000 / EUR 2,000 Private-sale holding period: 1 year / 10 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	Dividend withholding tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Annual saver allowance: EUR 1,000 / EUR 2,000	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	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	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	Tax class I: 7% - 30% Tax class II: 15% - 43% Tax class III: 30% - 50% Tax-free allowances: EUR 20,000 - EUR 500,000	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: 19% / 7%	VAT: 21% / 10% / 4%
Other key taxes	None listed on country overview	Reference employment scale: 19% - 47%

Who wins on each tax

Personal income taxGermany

Germany's top national rate is 45%, below Spain's possible combined regional rate of about 54%, although German employee social security is material.

Corporate taxSpain

Spain's standard corporate rate is 25% and 2026 SME rates can be lower; Germany's corporation tax plus municipal trade tax often produces about 30%.

Capital gains taxSpain

Spain's individual savings scale is 19%-30%, while Germany generally taxes securities at 26.375% after the saver allowance.

Dividend taxSpain

Spain's resident individual dividend scale is 19%-30%; German dividends are usually 26.375% before church tax and individual facts.

Wealth taxGermany

Germany has no current broad net wealth tax; Spain has annual Wealth Tax and a separate solidarity tax that can reach 3.5%.

The verdict

Germany's ordinary income scale reaches 45%, while Spain's final regional IRPF can reach about 54%. Germany's social-security burden makes the net-pay gap narrower than the brackets suggest.

Spain is generally better for securities gains and dividends at 19%-30%, compared with Germany's usual 26.375% securities and dividend burden including solidarity surcharge.

Choose Germany for predictable payroll and a broad industrial base; choose Spain when savings-income treatment, an eligible impatriate regime or a favorable region is the main driver. Treaty residence and CFC rules still matter.

How to read this comparison

Germany and Spain are both high-compliance EU bases. Germany usually wins on broad personal and wealth-tax exposure; Spain's strongest case is lower savings-income tax and regional flexibility.

Frequently asked questions

Is Germany or Spain lower tax?

Germany is often lighter for ordinary high income and wealth-tax exposure, while Spain is often lighter for portfolio gains and dividends. Region, social security and property ownership can reverse the answer.

Does Spain or Germany have lower company tax?

Spain's 25% headline rate is usually below Germany's combined corporation and trade-tax burden, though qualifying Spanish micro-companies and German municipal rates need a company-specific check.