Spain to Reduce Individual Income Tax Rates Earlier than Planned

On 2 July 2015, Spanish Prime Minister Mariano Rajoy announced that the planned reduction in individual income tax rates from 1 January 2016 will instead be pushed forward to 1 July 2015. The reduction was introduced as part of the 2015 Budget with an initial reduction in the number of tax brackets from 7 to 5 and reduction in rates effective 1 January 2015, and a further rate reduction as follows:

• Up to €12,450 - 19%
• Over €12,450 up to €20,200 - 24%
• Over €20,200 up to €35,200 - 30%
• Over €35…