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Corporate Tax in Spain

Corporate Tax in Spain

Updated on Monday 18th April 2016

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corporate_tax_in_spain.jpgOne of the most important taxes which are due by the local and the foreign investors who opened companies in Spain is the corporate tax that is applied on the federal level. There are also other less important taxes that are levied by the regional governments in this country, so a foreign entrepreneur should be aware of these two levels of taxation – at the federal and at the regional level.

The good news for the foreign investors is that the rate of the corporate tax decreased in 2015, from 30% to 28% and it will go down until 25% the next year (2016). The rate was even higher in 2005 when it reached 35% and three years later it decreased to 30%. This decreasing is a sign that the Spanish authorities want to encourage the businesses in this country that was strongly affected by the financial crises.

This tax is applied to all companies registered in Spain and it is calculated on the net income obtained from the economic activity during a business year. The corporate tax represents an important source of income for the public budget of Spanish authorities.

Different rates for certain types of companies

The reduced rates applied for small companies were eliminated starting 2015, when the new rate came into force. The Spanish authorities decided to allow a transitory period, during 2015, when the corporate tax for small and medium-sized companies is 25%, except for those that obtain profits over EUR 300,000 and that are applied a 28% corporate tax.

The new investors in Spain are encouraged to open companies because they will have to pay a reduced corporate tax in the first two years in which they obtain a taxable profit. So starting 2015, there is a 15% corporate tax for newly formed companies.

If you need to find out more about the corporate tax you have to pay for your business, you may contact our law firm in Spain. Our Spanish lawyers will offer you information about the taxation system in this country and legal assistance for the issues you may have during your economic activity.


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