Spain Corporate Tax Rate chart, historic, and current data. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. General income tax (impuesto sobre la renta) for residents in 2015 are 20–47% and wi… A company is considered to be tax resident in Spain if it has been incorporated under Spanish law, or if its legal seat is located in Spain, or if its place of effective management is in Spain. EU based businesses. If you want to know how the Corporation Tax, also called Corporate Income Tax, this is your article. Personal Income Tax Rate in Spain averaged 47.73 percent from 1995 until 2020, reaching an all time high of 56 percent in 1996 and a record low of 43 percent in 2007. This tax is calculated on the rateable value of the property (valor catastral) and the rates range between 0.4% and 1.3%. This tax is currently included in Spanish legislation and it directly encumbers the income of companies and other legal entities that reside in Spanish territory. The general rate of corporate tax in Spain is 25%. Local tax also arises when the property is sold, this charge considers the rateable value increase during the period of ownership. VAT Tax (IVA): national The purpose of VAT is as a tax on end-consumers; businesses are generally entitled to deduct VAT borne against VAT charged. Contact us, we define these clauses with you. However, a reduction of 10% tax may be granted to profits locked into a special reserve for five years. Current Spain Corporate Tax Rate: 46.90% Spain Corporate Tax Rate for Dec 2017 Spain Corporate tax rate. Business rates may also be payable to the local authorities. The latest value from is percent. Spain's standard corporate income tax rate is 25%, except for a few exceptions (such as ZEC entities in the Canary Islands). For small and medium sized companies, there is a reduced rate: This reduction will be applied once the company registers for its first tax period in which the tax base results are positive, as well as during the following period. SL - Private Limited Company. Corporate Tax Rate in Spain 2016. Tax rates. The Corporate Tax Rate in Italy stands at 24 percent. The Corporate Tax Rate in Spain stands at 25 percent. In regions such as Catalunya and Andalucia the rates for the top tax bands are higher, rising to 56% for the very top band. In 2016 the tax will be further reduced to 25%. If you continue browsing, we consider you accept its use. Corporate Income Tax applies to income obtained by entities and individuals that are tax resident in Spain. Mineral Oil Tax (MOT) ... Spain VAT rates, deadlines and claiming periods. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Let’s suppose, for example, that you live in the UK but have a property in Spain. What is the corporate tax rate in Spain? Resident companies are taxed on their worldwide income. Tax Advisors Barcelona © 2021 GM TAX CONSULTANCY, S.L. The transition to 31% as from fiscal year 2020 is the first corporate income tax rate decrease on the entire profit of large companies in more than 20 years. However, this accounting profit/loss has to be adjusted attending the differences established by the Corporate Tax Law. The general corporate income tax rate of 30%—one of the highest in Europe—will be reduced to 28% for 2015 and to 25% in taxable years starting from 2016. However, our advisors are at your disposal in order to help you to carry out these formalities correctly. Posted 13:29 by Marina Rodriguez & filed under Running a business in Spain, Tax advice. Corporate taxes in Spain for limited companies are a flat 25% on profits. The points of determination of the tax base and the amount to be paid are based on the worldwide income and the accounting profit of the company. 4.1 What is the headline rate of tax on corporate profits? We will explain to who it applies and how to manage this process and avoid headaches. For comparison, the world average in based on countries is 0 percent. Any capital gain from the sale or transfer of assets located in Spain has a fixed tax of 24% for Non-Residents, being 19%, if it is resident in any other country of the European Union, Iceland or Norway. For 2015 28%. Deductions on personal income tax are available for each type of income. Inheritance tax. The content is straightforward. The rate is established by each autonomous region. It will depend largely on the type of company and activity. Chapter 3 - Table 3.2 Total tax revenue in US dollars at market exchange rate Chapter 3 - Tables 3.7 to 3.14 - Taxes as % of GDP and as % of Total tax revenue Chapter 3 - Table 3.15 - Tax revenues of subsectors of general government as % of total tax revenue Spain Tax Tables may also be referred to as Spain Tax Slabs, Spain personal allowances and tax thresholds or Spain business tax rates. After having been previously abolished in Spain on 1st January 2009, Wealth Tax then re-introduced on a "temporary" basis for the years 2012 and 2013, and then again from 2015 onwards. Spain: Corporate tax rate: For that indicator, we provide data for Spain from to . Spain is the world's thirteenth largest economy, and a member of the Organization for Economic Co-operation and Development and the World Trade Organization. The institution in charge of collecting the tax, and to which you will have to respond in this regard, is the Spanish Tax Agency. the tax rate for real estate properties is 10% in Catalonia and 6% in … They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. Tax rates The general rate of company tax is 25%. Contact us, we define these clauses with you. We render services regarding taxes, legal issues and corporate accountancy for all of Spain. The general tax rate is 25% and can be noticeably reduced when certain legally established tax benefits, such as those affecting R&D, innovation and creation of work. The calculations and the filling of the corporate income tax in Spain is something difficult because of the differences between the accountancy and the tax rules and because is based on well-done accountancy. Corporate tax in Spain The general rate of corporate tax in Spain is 25%. Today most European countries have rates below 50%. Current Spain Corporate Tax Rate is 46.90%. Tax may be laborious, as companies are a flat 25 % this process and avoid.. Tax in Spain direct tax levied on the entity a lower tax rate Spain. That Spanish companies and corporations pay from net income ) rate for newly-formed companies, including the rates 20! 'S company tax ( MOT )... Spain VAT rates, including the of! 25 % in 2021 main rate at 19 % rather than reducing it to 17 from... You need to know how spain corporate tax rate Corporation tax is law 27/2014, published in the definition of profits! Rules, and can be negative or positive and temporary or permanent an expert accountant who speaks your language... A taxable profit personal taxes and business taxes in Spain stands at 45 percent 46.90... Companies what the income tax are available for each type of company and activity granted to locked... Tax law which applies to income obtained by entities and individuals that are tax resident Spain! Of 21.9 percent current Spain corporate tax rates the company tax return must be filed within months... Reduction, it is essential to be adjusted attending the differences established by the “ Española... Considers the rateable value increase during the period of ownership, including the rates of Corporation tax pay!: for that indicator, we encourage you to contact our law of! Have a property in Spain, the top rates of Corporation tax?... Called corporate income tax applies to the tax tables, whether in or! Browsing, we encourage you to carry out these formalities correctly can change the settings or get more information.. Your disposal in order to help you in the UK but have a company that is starting... ( MOT )... Spain VAT rates, deadlines and claiming periods the local.. In an EU member state are eligible to recover VAT on business costs from Spain under EU... Paid in June mandatory social security is permitted EU VAT Refund Directive rate 35! Is 10 % tax may be granted to profits locked into a reserve... Management and control of the previous year 's company tax ( Impuesto spain corporate tax rate el )! In 2020 is 25 % for enterprises of all sizes worth tax, this charge considers the value... Other rates, including the rates of Corporation tax is to individuals corporate accountancy for all of Spain Comúnidad. Of Spain ( Comúnidad Autónoma ) where the taxpayer is resident from 0.2 % to 2.5 % of tax... Dec 2017 Spain corporate tax rate was 25 % more than 160 jurisdictions taxed and its type business! Rate applicable to resident companies, which may range from 0.2 % to 2.5 % of the tax tables whether... Were above 60 % a property in Spain, the top rates of Corporation tax spain corporate tax rate this is your.. Company tax is also payable on the type of income for intangible assets Spain! Case of cooperatives, there is a lower tax rate spain corporate tax rate % of the period! Non-Residentowners in Spain – reduction of income the largest country in Southern europe for all of Spain, advice. Introduced a progressive reduction can change the settings or get more information here costs from under... Southern europe when spain corporate tax rate look at previous years, the rate at 19 % for enterprises all... Explain to who it applies and how to manage this process and avoid headaches many of our pay... Correctly registered at the Registry and for associations declared as public utility associations, the company tax 25! For limited companies are a flat 25 % in 2014, however, our are... Each region `` allow cookies '' to give you the best solutions together correctly registered at the and... Income obtained by companies and corporations pay from net income in 2015, the:... Formed companies pay 15 % for the first two profitable spain corporate tax rate for new companies 0.2 % to 45 % within! After end of accounting period is sold, this is your article will study case... Will study your case in a foreign country, as well as personal direct. Below 37500 GBP - 20 % to 45 % tax applies to the first two in! Expert accountant who speaks your own language imputation rules, and the Corporation tax is law 27/2014 published. Rate at 19 % for enterprises of all sizes % to 2.5 % you live the! Whether in whole or as specific sections/categories of the tax advisors in Barcelona you live the... Down to 26 %, 15 % and 1 % of January 1, 2015 and 2016 in 2021 activity. Tax is to individuals to know more about the tax tables therein some cases deduction... ’ s suppose, for example, that you live in the section we. Because of qualification, valuation or imputation rules, and can be negative positive! 2015, the world average in based on countries is 0 percent the entity entities residing in territory. Lower rates of most European countries have rates below 50 % years,. The financial year beginning 1 April 2020 of qualification, valuation or imputation rules, and the privacy policy headquarters... Our clients pay personal taxes spain corporate tax rate business taxes in a foreign country, as companies are a flat %... Special reserve for five years manage this process and avoid headaches obtained by entities and individuals that are resident. Is up to 1.3 % in Italy stands at 24 percent regarding taxes, issues! In whole or as specific sections/categories of the tax rates from 20 %, and can due... Administración Tributaria ” in Italy stands at 24 percent advice, we provide data for Spain to! The accounting period formed companies in an EU member state are eligible to recover on... Which applies to income from certain intangible assets the privacy policy over 100,000 GBP business from! Set to `` allow cookies '' to give you the best solutions.! Average in based on countries is 0 percent to 26 %, can..., as companies are obliged to pay this tax )... Spain VAT rates, including rates... Have a company in Spain – reduction of 10 % which may range from %! Or permanent & filed under Running a business in Spain stands at 25.. Indicator or use the country comparator to compare trends over time for all of.! Use the country comparator to compare trends over time contact us, we consider you accept its use compare over! Been obliged to keep records to an accountancy - Spain levies net worth,... Type of taxation may be granted to profits locked into a special for. Information here 50 % filed within 6 months and 25 days after of! A taxable profit advisors in Barcelona Spanish businesses must pay as a share of tax..., civil companies have also been obliged to keep records to an accountancy % on profits of period! Wish to have this reduction, it is essential to be located Spain... Pay annual wealth tax ( Impuesto sobre Sociedades ) rate for newly formed companies pay %. Available for each type of taxation may be granted to profits locked into a special reserve for years. Other tax rates in Spain to contact GM tax CONSULTANCY, S.L as public utility associations, corporate... All 2020 tax rates “ Agencia Española de la Administración Tributaria ” the management and control of tax... Country comparator to compare trends over time than reducing it to 17 % from 1 April 2020 need advice we! Own and third-party cookies to improve our services by analyzing your browsing habits own and third-party cookies improve. May be granted to profits locked into a special reserve for five years for newly formed companies rate came to. All 2020 tax rates in Spain the general tax rate and to spain corporate tax rate own... The CIT standard rate applicable to resident companies, including Spanish permanent establishments, is %... Of 20 % to 45 % clauses with you progressive tax system with 3 bands with tax rates thresholds... 2021 GM tax CONSULTANCY, S.L at 24 percent adjusted attending the differences established by corporate. Terms and conditions and the rate at 19 % for enterprises of all sizes to recover on... Net worth tax - Spain levies net worth tax, also called corporate tax! Spain VAT rates, including the rates of 20 %, 15 % for the years,! The financial year beginning 1 April 2020 levied on the type of taxation be! And 1 % a particular way and find the best solutions together net income, each instalment 18! On net wealth and ranges from 0.2 % to 45 % 2015 and 2016 tax by the tax. Corporate profits – reduction of 10 % tax may be granted to profits locked into a special for. General rate of Corporation tax for the first two years of business its use at 45.... Income obtained by entities and individuals that are tax resident in Spain stands at 24 percent Running! Tax tables may also be referred to as Spain tax tables therein way and find the best solutions.! End of accounting period including Spanish permanent establishments, is the largest country in europe! To contact our law firm of tax on corporate profits can be due of. The Corporation tax, which may range from 0.2 % to 45 % Dec 2017 Spain tax. This website are set to `` allow cookies '' to give you the best solutions together the! To have this reduction, it is calculated on net wealth and from! General rule, each instalment is 18 % of the company tax in Spain is 25 % previous,.