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Taxation in Spain

  • Incorporation time: 28 days
  • Shelf companies: No
  • Accounting: Yes
  • Secretary: Yes
  • Nominee Shareholder: No
  • Nominee director: No
Tax 35%
1 € = 1.35 USD

Spanish Tax Rates

Taxation on companies is quite complex in Spain and depends on the type of business, with a basic rate set at 30% :

Type of business Corporate tax
SMEs with a turnover of under EUR 8,000,000. 25% on profits of up to EUR 120,200 then 30%
Companies engaged in hydrocarbons exploration, research and exploitation. 35%
Mutual insurance companies, mutual guarantee companies, cooperative building societies and rural savings banks, professional bodies, industry associations, official chambers of commerce, workers unions, non-profit organisations, cooperative unions, employment promotion funds, state ports and independent ports. 25%
Fiscally protected cooperatives. 20%
Investment companies. 1%

Capital gains are taxed at 30%. Many items are tax-deductible: costs of R & D, protection of national heritage, film industry investments, environmental protection, investment for people with reduced mobility, for child day care, professional training and the creation of jobs for persons with disabilities, etc.

VAT in Spain is 21% with reduced rates of 10% (beverages without alcohol, food, medication for animals, health products, real estate, transport, hotel and catering industry) and 4% (medication, cultural products, vehicles for the handicapped, construction materials). Individual income tax follows the following scale:

Individual income in EUR Tax rate
0 to 17,707 24.75%
17,708 to 33,007 28%
33,008 to 53,407 37%
53,408 to 120,000 43%
120,001 to 175,000 44 %
175,001 and above 52%
Tax on savings 21% for earnings lower than EUR 6000, otherwise 27%

Links :

Spanish tax agency

Accounting Requirements in Spain

In Spain, the tax year begins on 1 January and ends on 31 December. Business accounting is governed by the General Accounting Plan and requires companies to publish their accounts annually, including a balance sheet, an income statement, a list of asset changes, the cash flow statement and annex.

An external auditor must also carry out an annual audit of the financial health of the company.

Link : General Accounting Plan

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