Taxation in SpainUpdated on Tuesday 26th April 2016
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Every time a foreign investor chooses a country to perform business in, one of the most important things he is interested in is the taxation system. Certain countries are attracting a large number of foreign entrepreneurs due to the taxation level that is very low and other countries offer important incentives for investing in certain economic sectors.
One of the major taxes for doing business in Spain is the corporate tax that has been constantly decreased from 2006 to 2014 and onward. This is an important step followed by the Spanish authorities in order to increase the number of local and foreign investors.
Corporate taxation in Spain
Taxation for individuals in Spain
VAT in Spain
Another important tax in Spain is the value added tax (VAT), at the standard rate of 21%. There are reduced rates for certain products and services: 10% for cultural events, hotels and most drinks and 4% for basic food.
The legislation for foreign investments in Spain has been changed and it is favorable for attracting new businesses in this country. The goal of the Spanish authorities is to attract more foreign investments and to protect certain sectors that are vital for this country. Because of this, the Spanish authorities imposed some restrictions on the fields such as air transport, radio, television, raw materials, private and national security etc.
If you need to know the taxes you will have to pay for your business in Spain, regardless of the business field in which you operate and type of company you run, you may contact our law firm in Spain. Our Spanish attorneys will keep you up to date with the legislation related to taxation in this country and they will recommend you the best type of company.