Withholding (retención) is the IRPF your employer takes from each payslip and pays to the tax office on your behalf. It is not a separate tax: it is an advance on the year's IRPF.
How it is worked out
Your employer estimates your yearly salary, applies the same rules as the renta (Social Security, reductions, personal allowance, scale) and gets your expected IRPF. The withholding rate is that IRPF divided by your gross.
On €30,000 gross in Cataluña, the year's IRPF is about €4,959. Spread over your payslips, that is what you will see withheld.
Why it changes during the year
- Your pay changes: a rise, a bonus or overtime.
- Your situation changes: a child, a move to another region or a new contract.
- You give your employer new details on form 145 (modelo 145).
When that happens, your employer recalculates the rate for the rest of the year.
If too much or too little is withheld
The renta compares what was withheld with your real IRPF. If too much was withheld you get a refund; if too little, you have to pay.
You can ask your employer for a higher withholding rate than the calculated one, for example if you have other income. You cannot ask for a lower one.
Minimum withholding on short contracts
Contracts shorter than a year have a minimum withholding of 2%. See temporary or permanent contract.
The calculator shows the approximate withholding rate and how much is withheld each month.