Corporate Tax Advice in Spain
When there is more than one country involved, tax planning requires a level of expertise that few professionals can offer. Many of our clients pay personal taxes and business taxes in a foreign country, as well as personal and business taxes in Spain. In Spain, the corporate income tax rate is 35%.
Contact our English-speaking team for all your legal, property, and accounting needs.
Companies with yearly sales of less than 8 million euros may qualify for certain tax incentives:
A tax rate of 25%, applicable to the first 120,000€ of taxable income.
Accelerated depreciation of certain fixed assets.
A 10% tax credit for investments and expenses in internet, information technology, and communications.
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.
Tax on Business Activity (IAE): Local
This is an annual tax which is waived for any business with profits of less than one million euros. It is an annual tax paid by businesses operating in the municipality. This tax rate depends on many factors, such as size and location of the business, the type of business and number of employees.
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Need help understanding the taxation system?
Download the FREE Guide to Taxes for Non-Residents in Spain, written by Raquel Perez, owner of Perez Legal.
Are you buying a property?
Then you need to know the process. Download the FREE Guideline Procedure for Purchasing a Property.
Confused with the legalities of buying a home?
Download the FREE Spain Legal Buying Guide, written by Raquel Perez, owner of Perez Legal Group.
Selling your property?
Get an overview of what is involved by downloading the FREE Guide to Selling Your Spanish Property Legally.
Do you need help planning for the future?
Find out more information on the inheritance system here in Spain by downloading the FREE Inheritance Services book.
Are you planning to run a company in Spain?
Download our Fiscal & Accounting Services Guide and Price List to find out all about running a company in Spain.