In this page: Corporate Taxes | Accounting Rules | Consumption Taxes | Individual Taxes | Double Taxation Treaties | Sources of Fiscal Information
If a company is established in a country or territory where no tax is levied or that is a tax haven, such company is deemed resident in Spain for taxation purposes if its core business activity is carried on in Spain or its main assets consist, directly or indirectly, of property located or rights fulfilled or exercised in Spain.
Corporate Income Tax (applies to trading profits, income and capital gains) | 25% |
Newly created companies for both the first tax period in which they obtain a profit and the following tax period (does not apply to equity companies) | 15% |
Business and professional activities tax (local direct tax levied annually on the performance of business, professional, or artistic activities) |
Varies according to several factors, and may not exceed 15% of the presumed average profits of the business/professional activity |
Fiscally protected cooperatives | 20% |
Companies operating in Canary Islands Special Zone (ZEC) | 4% |
Credit institutions | 30% |
Minimum tax (from 1 January 2022 - for companies that had a net turnover in the prior year of at least EUR 20 million or that are part of a tax consolidated group) |
the lower of: - 15% of the taxable base, or - the amount resulting after deducting certain tax credits established to promote investments by port authorities and foreign tax credits from 25% of the taxable base |
Tax incentives are provided for R&D (25%, or 42% if the expenses are higher than the average R&D expenses incurred by the company during the previous two years) and technological innovation of existing products (12% of the costs). An additional tax credit of 17% can be availed of for staff expenses incurred for staff exclusively carrying out and qualified to carry out R&D activities. Special tax treatment is also given to venture capital companies and funds.
Companies resident in a tax haven for tax purposes that own real estate or hold real property rights in Spain are subject to a tax equal to 3% of the assessed value of the real estate.
The employer contributes 29.9% of the employee’s wages for social security (23.6% for common contingencies, 5.5% for unemployment, 0.2% for the salary guarantee fund, and 0.6% for professional training), plus a contribution for professional contingencies ranging between 1.5% and 7.15%, depending on the type of activity.
Other taxes include: real estate tax (levied annually by the local authorities), a local tax levied on the increase in the value of urban land (applied at the time of the sale of the urban real estate), a motor vehicle tax, waste collection fees.
Spain | OECD | United States | Germany | |
---|---|---|---|---|
Number of Payments of Taxes per Year | 9.0 | 10.1 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 143.0 | 163.6 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 47.0 | 41.6 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
Under Spanish law, if two of the following requirements are met in two consecutive years, the company may avoid audit of its annual accounts: total assets are less than EUR 2.85 million; annual turnover is less than EUR 5.7 million; and the workforce comprises fewer than 50 employees.
Exports and international services provided to non-EU countries are zero-rated.
Filing and payment are due quarterly, unless the turnover in the previous period exceeds approximately EUR 6,010,121.04, in which case they are due on a monthly basis through the electronic VAT reporting system.
Special Tax on Certain Means of Transport (IEDMT) is required when registering a motor vehicle.
The transfer of real estate is also subject to a VAT of 21%, with a reduced rate for private residential property (10%) and individuals not in the VAT system (6% transfer tax).
In the Canary Islands, a specific tax is applied en lieu of VAT (Canary Island General Indirect Tax - IGIC), at a standard rate of 7% (other rates are 0%, 3%, 9.5%, 15% and 20%). In Ceuta and Melilla, a sales tax is applied instead of VAT.
A gift and inheritance tax is levied on the assets' net acquisition value with progressive rates (which may vary according to the region, generally between 7.65% and 34%). A tax is applied on gaming income.
Tax Base | Progressive rates from 9.5% to 22.5% Please note that the local rate resulting from the table approved by the relevant Spanish region must be applied, so the final tax rates may in practice vary according to the region where the individual is resident. |
From EUR 0 to 12,450 | 9.5% (+9.5% local tax) |
From EUR 12,450 to 20,200 | 12% (+12% local tax) |
From EUR 20,200 to 35,200 | 15% (+15% local tax) |
From EUR 35,200 to 60,000 | 18.5% (+18.5% local tax) |
From EUR 60,000 to 300,000 | 22.5% (+22.5% local tax) |
Above EUR 300,000 | 23.5% (+23.5% local tax) |
Savings tax | A 19% tax is levied on savings income up to EUR 6,000; 21% on savings income between EUR 6,000 and EUR 50,000; 23% on savings income up to EUR 200,000; and 26% on savings income above EUR 200,000 |
Wealth tax (on the assets held by the taxpayer as of 31 December) | Progressive rates from 0.2% to 3.5% (may vary according to the regional governments' regulations). |
Several allowances are provided by the law for individuals (EUR 5,550, raised to EUR 6,700 for over 65s and to EUR 8,100 for over 75s) and families (varying according to the composition of the family). A minimum family allowance for disability of relatives in an ascending and descending line of EUR 3,000 for each relative or EUR 9,000 when the level of disability is 65% or more also applies.
The expenses incurred to realise a business income can generally be deducted. Several reductions apply to the net business income.
Capital losses arising from transfers of assets are included in savings income and can only be offset against capital gains included in the savings income of the tax period.
For further information, visit the dedicated pages on the website of the Spanish Tax Authority.
The income tax is not levied on employment income obtained by tax resident individuals if the work is effectively carried out outside Spain and if the work is carried out for a company, entity or permanent establishment which is not resident in Spain for tax purposes and a similar tax is levied in the country where the employee carries out the work (up to the limit of EUR 60,100).
For 2022, employees' social security contribution amount to 6.35% of the salary (4.70% for common contingencies, 1.55% for unemployment, and 0.10% for professional training), with a maximum contribution base of EUR 4,070.10 per month.
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Latest Update: June 2023