VAT refund in Spain: A complete guide to tax-free shopping in Spain for tourists

There are few things more enticing than a holiday in Barcelona, home of awe-inspiring architecture, mouth-watering tapas, and, most importantly, luxury shopping. Consider Balenciaga, Desigual, Loewe, and Zara, all brands grown out of Spain. Clothing and leather goods from these Spanish luxury brands could soon be yours–and at a reduced cost!

All you need to do is buckle up for your flight and stay tuned for our step-by-step guide to tax-free shopping in Spain. In short, get ready for the warm beaches of Barcelona and your unique shopping experience overseas.

This article will help you understand how to get a VAT refund in Spain when visiting as a tourist. Its instructions do not pertain to purchases made in Canary Islands, Ceuta, and Melilla.

How much is VAT in Spain?

Called Value Added Tax in the United Kingdom and Impuesto al Valor Agregado in Spain, VAT is usually marked at 21% in Spain. However, alternate tarifs exist, including the reduced rates of 10% and 4%, as well as the zero-rated class of goods, the last of which usually does not figure into tourism activities.

As codified in law, most purchasable in Spain will be taxed at 10%, except for tobacco, alcoholic beverages, drunks with added sugar or sweeteners, which are taxed at the standard rate. Cinematic and theatrical experiences, too, are usually taxed at a mere 10%. Zoos, exhibitions, and amusement parks, on the other hand, are often marked at the original 21% tax rate.

Books that are not for scholarly application and newspapers, as well as certain food staples, are usually taxed at 4%. Certain medical goods are taxed at 4% as well. But please bear in mind that not all goods you consider essential will be taxed at this lower rate.

Here’s a chart to help you out:¹

Tier	Rate	Applicable goods
Standard rate	21%	The majority of goods
Reduced tax rate	10%	Food and beverage
Super Rreduced rate	4%	Highly necessary goods such as food stables and certain medical supplies
Zero-rated	0%	Donations of certain goods

How much VAT is refunded in Spain?

The standard VAT rate is 21%, but usually tourists can’t redeem the full amount. In fact, the percentage that you can get back varies from location to location.

Who is eligible for tax free shopping in Spain?

All people travelling in Spain who have their permanent residence outside of the EU may reclaim VAT at exit from Spain. Keep in mind that you must have purchased the items for which you are claiming a refund within the past three months.

How to get VAT refund in Spain?²

There is a simple step-by-step process for reclaiming VAT in Spain. It involves the following:

Request a DER/DIVA

You must request an electronic tax-free refund document (DER/DIVA) at the time of your purchase, in the shop in which you are making your purchase. To receive a DER/DIVA, you will need your passport or another way to prove your identity and residence outside of the EU.

Take the forms to a tax-free management entity³

The Spanish Tax Agency (AEAT) can help you to process your refund at any authorised tax-free management entity. Most of these are found at airports and other ports. Sometimes, if you have made your eligible purchase in an airport, you can claim VAT straight away, right at the shop.

Alternatively, Spain also offers the convenience of delayed reclamation if you choose to recover the VAT through the shop. You can actually have four years to send the DER/DIVA to the supplier to get your VAT refund if you wish. However, if you surpass four years, the shop no longer holds any obligation to refund you.

When approaching your tax-free management entity, forms in hand, please also remember to take your passport, boarding pass, and the actual goods that you purchased. These will be reviewed in greater or less detail, depending on the specific approach of your authorised tax-free management entity. Searching which entities operate in your airport can be an important part of knowing how to find them, whether you are leaving out of Barcelona or out of Madrid.

Obtain a VAT refund⁴

The refund occurs within 15 working days, and may be effected via cheque, bank transfer, or refund to a credit/debit card. Some authorised and collaborating entities even offer a cash refund!

Using this article’s detailed information and step-by-step guide, you can ensure that you receive an even bigger return on investment than the simple fact of luxury fashion ownership; you can ensure that you get a VAT refund on top!

It’s worth noting that the credit/debit card receiving the refund may have a different denominated currency than the local currency (e.g. EUR) and this leads to a cost of the automatic conversion. However, here's the good part: you can receive your refund conversion fee-free with a Wise debit card if no currency conversion is involved. Or, even if a currency conversion arises, Wise only charges a small fee and converts at mid-market rates without markups. This card lets you hold 40+ currencies, including EUR, maximising your savings for your next adventure. Start your adventure with Wise today!

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

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Sources used for this article:

1. Tax Agency: VAT tax rates
2. Tax Agency: VAT refunds for travellers' purchases (DIVA)
3. Tax Agency: General information on VAT refunds for travellers
4. Tax Agency: VAT refund for travellers who are residents of countries not belonging to the European Union (EU)

Sources last checked on 11-Jun-2024.