Spain has hit a record tax haul after pulling in €325 billion in 2025 as booming income tax and consumer spending drive a sharp rise in public revenues.

The figures, released by the Agencia Tributaria, show a surge of more than 10% in both income tax (IRPF) and VAT, alongside an 8% increase in corporation tax.

The bumper intake has helped slash Spain’s deficit to 2.2%, its lowest level in 18 years.

Where the money comes from

Income tax remains by far the biggest contributor to Spain’s coffers.

IRPF generated €142.4 billion last year, accounting for 43% of all tax income, fuelled by rising employment and higher wages.

VAT came close to breaking the €100 billion barrier after growing by 9.9%, reflecting strong household spending across Spain.

Together, the two taxes now make up nearly three quarters of all government revenue.

Corporation tax brought in €42.2 billion, while special taxes, including duties on fuel, tobacco and electricity, added a further €23 billion.

Not all of it goes to Madrid

Despite the headline figure, the central government does not keep all of the money.

A significant share is redistributed to Spain’s regions.

Both income tax and VAT are split roughly 50/50 between the state and autonomous communities, while regions receive an even larger share – around 58% – of revenue from special taxes.

Are taxes in Spain high?

Spain’s overall tax burden measured as a percentage of GDP stands at 36.7%, according to the OECD.

That is slightly above the OECD average of 34.1%, but still below several major European economies.

France and Italy both exceed 40%, Germany sits at around 38%, while Denmark tops the list at more than 45%.

The figures underline the strength of Spain’s post-pandemic recovery, with job creation and consumer spending continuing to drive growth.