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, Technology Services and Logistics.
27 foreign companies opened or expanded operations in our city in 2022 which brings the total to 72 new companies creating 1000s of new job opportunities in Malaga since 2019 as reported by the 2022 Malaga Investor Office´s Annual Report.
The 5th annual edition of the Malaga Foreign Business Climate Barometer, prepared by the Fundación CIEDES and sponsored by Promalaga & the City Promotion & Investments Department - City of Malaga informs that:
- Malaga is the first Andalusian province in gross foreign investment with € 348 million euros in 2021, a 32.47 % increase compared to the previous year.
- Foreign investment in Malaga represents almost 37% of the Andalusian region total.
- 76% of the foreign companies surveyed in the province of Malaga estimate that turnover will grow, 64% are committed to increased investments and 62% plan to increase staff in 2022.
- 61% of those surveyed still believe that remote work is an attractive option which is evident since Malaga is one of the cities where teleworking has grown in recent years.
- Regarding the reasons that attract and retain foreign companies in Malaga, 83.3% of mentioned the geographical location, followed by the attractions of the territory for 66.7% and then the easy of foreign people integrating into the City, valued by 43% of those surveyed.
- Some measures to improve or increase foreign investment in Malaga: reduce bureaucracy, expand office space options, further promote the city and improve the housing supply.
- 2023 forecasts in Malaga are equally positive. 81% of foreign companies estimate that they will continue to grow their turnover, 66% believe in the creation of employment and 55% forecast an increase in investments, while 47% predict an increase in exports.
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 2020|
|0 € - 12,450 €||19 %|
|12,450 € - 20,200 €||24 %|
|20,200 € - 35,200 €||30 %|
|35,200 € - 60,000 €||37 %|
|60,000 € - 130,000 €||45 %|
|130,000 € - 300,000 €||47 %|
|above 300,000 €||49 %|
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.