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Business Environment

Local Economy

Malaga and its province have experienced economic expansion during the past few years, surpassing both the Andalusian and the Spanish growth rates.

The most dynamic sectors are Tourism, Construction, Agriculture and Technology Services, but other sectors such as Transportation and Logistics are beginning to expand.

27 billion

provisional GDP 2014
Analistas Económicos de Andalucía. Málaga (F. CIEDES)

18,756

provisional GDP (PPP) per capita
Organisation for Economic Co-operation and Development (OECD)

-0.9

Provincial growth rate 2012-2013
Instituto de Estadística y Cartografía de Andalucía-INE

7,425

Declared Net Personal Income Tax (euros/inhab./year)
Sistema de Información Multiterritorial de Andalucía- IEA

1,447

Trading Companies Created (2012)
Instituto de Estadística y Cartografía de Andalucía-INE

1.4 billion

Provincial Exports (2013)
Ministerio de Economía y Competitividad

1.2 billion

Provincial Imports (2013)
Ministerio de Economía y Competitividad

216,387

Number of Contributors to the Spanish Social Security System (2013)
Tesorería Gral. de la Seguridad Social de Málaga

44,005

Businesses established (2012)
Sist. Inform. Multiterritorial de Andalucía

2,286

Business licenses (2012)
Ayuntamiento de Málaga

93,995,751

Estimated Foreign Investment in Malaga Province
Ministerio de Economía y Competitividad

 

  University of Malaga (UMA) 2000-2012 
1,238  Research Projects
3,651 Research Contracts by the University of Malaga in Public and Private Sector
217 Patents

Taxes

Spain’s fiscal/tax year is the natural calendar year. Income taxes in Spain should be paid between May 1 and June 30 for the previous year’s income.

Tax residents will need to pay income taxes in Spain and are generally defined as those who reside in Spain over 183 days in each calendar year and/or have their main financial interest in Spain.

Personal Income Tax (IRPF) is charged on the available income of individuals according to a progressive rate scale ranging from 20% to 47%.

Income (above allowances) Tax Rate 2015 Tax Rate 2016
€0 - €12,450  20 % 19 %
€12,450 - €20,200  25 % 24 %
€20,200 - €35,200 31 % 30 %
€35,200 - €60,000 39 % 37 %
€60,000 and above 47 % 45 %


Expatriate workers can choose between this general tax system or the non-resident tax system (IRNR) at a fixed rate of 24% for a maximum of 6 years and a maximum annual income of 600,000 Euros. Income generated in other countries is not subject to the tax on this Spanish income. 

The following conditions must be met to be able to choose the IRNR:

  • Moving to Spain must be a consequence of an employment contract
  • Not having lived in Spain during the last 10 years.
  • The work must be undertaken for a company that is resident in Spain or a permanent establishment of a non-resident company in Spain.