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

Ireland vs Spain tax rates at a glance

Tax	🇮🇪 Ireland	🇪🇸 Spain
Income tax	Standard rate: 20% Higher rate: 40% Single standard-rate cut-off: About EUR 44,000 USC bands: 0.5% / 2% / 3% / 8% Employee PRSI: 4.2% then 4.35% Employer PRSI: About 9% / 11.25%+	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	Trading profits: 12.5% Passive / non-trading: 25% Company capital gains: 33% Pillar Two minimum: 15% Knowledge Development Box: Effective 10%	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	Standard CGT: 33% Annual individual exemption: EUR 1,270 Certain funds / policies: 40% Corporate gains: Often 33%	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% Standard income tax on dividends: 20% / 40% USC on dividends: Often applies Non-resident relief: Treaty / exemption dependent	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% Annual asset tax: 0% Local property tax: Applies	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	CAT rate: 33% Group A: EUR 400,000 free then 33% Group B: EUR 40,000 free then 33% Group C: EUR 20,000 free then 33% Spouse / civil partner: Generally exempt	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: 23%	VAT: 21% / 10% / 4%
Other key taxes	None listed on country overview	Reference employment scale: 19% - 47%

Who wins on each tax

Personal income taxTie

Ireland's income tax is 20%/40% before USC and PRSI, while Spain's combined rate can reach about 54%; the actual result depends on salary, region and social contributions.

Corporate taxIreland

Ireland's active trading rate is 12.5%, below Spain's 25% standard rate; both countries have lower regimes that require statutory conditions.

Capital gains taxSpain

Spain's savings scale is 19%-30%, below Ireland's 33% general CGT, while Spanish property sales can add municipal tax and non-resident withholding.

Dividend taxSpain

Spain generally taxes resident dividends at 19%-30%; Ireland can tax resident individuals at income-tax rates plus USC after its 25% DWT layer.

Wealth taxIreland

Ireland has no broad net wealth tax; Spain has regional Wealth Tax and a separate solidarity tax on large fortunes.

The verdict

Ireland's 12.5% trading corporate rate is materially below Spain's 25% standard rate, although Spain has 2026 micro-company and start-up bands and Ireland taxes passive income at 25%.

Spain is usually better for portfolio income: savings gains and dividends are generally 19%-30%, compared with Ireland's 33% CGT and dividend income taxed through the ordinary scale plus USC.

Choose Ireland for a real trading business and treaty-oriented company platform; choose Spain for a personal move where savings-income treatment, an eligible impatriate regime or a favorable region drives the decision.

How to read this comparison

Ireland is usually the better business-tax answer; Spain is often more competitive for an individual investor. A regional Spanish result and Ireland's USC/PRSI must be included before choosing.

Frequently asked questions

Is Ireland or Spain lower tax?

Ireland is usually stronger for active company profits and broad wealth-tax exposure. Spain is often stronger for individual portfolio gains and dividends, but regional taxes and social security matter.

Does Spain's impatriate regime make it lower tax than Ireland?

It can for a qualifying new employee, but the election has conditions and a time limit. It does not automatically solve company management, CFC, social-security or family-residence issues.