In Spain there is a fundamental distinction between how employment income (your salary) and savings income (what you earn from investing) are taxed. They are two separate tax bases under the IRPF (Spanish personal income tax).
The two tax bases:
- General base: Your salary, rental income you receive, self-employment income... Taxed at progressive rates that can reach 47% or more.
- Savings base (base del ahorro): The gains from your investments — dividends, capital gains, interest from accounts and deposits. Taxed at much lower, fixed rates, regardless of how much you earn from work.
⚠️ Important
A high-earning investor and a low-earning investor pay exactly the same percentage on investment gains. The savings base is identical for everyone, regardless of salary level.