Mexico vs Spain
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π²π½ Mexico β State & Municipal Taxes
Mexico's 31 states and Mexico City each have their own regimes. States charge local payroll tax (Impuesto Sobre NΓ³mina) at 1%β4% (employer-paid). Municipal property tax (predial) rates vary significantly. Some states have lodging and entertainment levies. The Maquila sector benefits from special IMMEX programs. Nearshoring boom is driving new investment.
πͺπΈ Spain β Autonomous Community & Municipal Taxes
Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econΓ³mico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.
Mexico vs Spain: Key Tax Differences (2026)
π° Income Tax: πͺπΈ Spain has a higher top income tax rate (1.92β35% vs 19β47%). π²π½ Mexico is more favourable for high earners.
π VAT/Sales Tax: Spain has a higher consumption tax (0β16% vs 4β21%).
π’ Corporate Tax: πͺπΈ Spain offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
π Capital Gains: πͺπΈ Spain taxes investment gains at a lower rate (28% vs 35%), benefiting investors.