How to calculate net salary from gross in Spain: step-by-step guide
When you are offered a job in Spain you are quoted a gross annual salary, but what reaches your bank account is the net amount. Between the two there are two deductions: Social Security contributions and income tax withholding (IRPF). In this guide we work through the full calculation with an example so you understand every step. If you just want the result, use the net salary calculator.
The example
Laura earns €30,000 gross a year in 14 payments, has a permanent contract, is single, has no children and is 34 years old.
Step 1: Social Security contributions
In 2026 an employee on a permanent contract contributes 6.50% of their base: 4.70% for common contingencies, 1.55% for unemployment, 0.10% for vocational training and 0.15% for the Intergenerational Equity Mechanism (MEI).
€30,000 × 6.50% = €1,950 a year, or €162.50 a month. Although Laura is paid in 14 instalments, Social Security is deducted over 12 months because extra payments are contributed for proportionally.
Step 2: net income and reductions
Contributions are subtracted from gross salary: €30,000 − €1,950 = €28,050. Then two reductions are applied:
- Employment income reduction: only for net income below about €19,750. Laura does not qualify.
- Other deductible expenses: €2,000 subtracted for all employees.
Withholding base: €28,050 − €2,000 = €26,050.
Step 3: apply the withholding scale
The progressive scale is applied (explained in detail in our guide to IRPF brackets 2026):
- Up to €12,450 at 19%: €2,365.50
- From €12,450 to €20,200 at 24%: €1,860.00
- From €20,200 to €26,050 at 30%: €1,755.00
Total: €5,980.50.
Step 4: subtract the personal and family allowance
The personal allowance (€5,550 for people under 65) is not taxed. It is calculated by applying the same scale to that amount: €5,550 × 19% = €1,054.50. If Laura had children, their allowances would be added.
Withholding amount: €5,980.50 − €1,054.50 = €4,926.
Step 5: withholding rate and net salary
Withholding rate = €4,926 / €30,000 = 16.42%.
- Gross per payment: €30,000 / 14 = €2,142.86
- IRPF per payment: €2,142.86 × 16.42% = €351.86
- Net in a normal month: €2,142.86 − €351.86 − €162.50 = €1,628.50
- Net in the extra payments (no Social Security): €1,791
Annual net: €30,000 − €1,950 − €4,926 = €23,124.
What can make your payslip different
- Variable pay, overtime or benefits in kind.
- The details on your Form 145 (modelo 145): children, disability, maintenance payments or a home loan taken out before 2013.
- Adjustments: if your salary changes mid-year, your employer recalculates withholding for the remaining months.
- Living in the Basque Country or Navarre, which have their own income tax (see regional IRPF).
Remember that withholding is an advance payment: your final tax is calculated in your annual income tax return (declaración de la renta).