The Spanish tax system has the so-called Business Activities Tax (the Spanish IAE). This is a tax managed by the Spanish Tax office and encumbers the execution of any kind of activity in Spain, whether natural persons or legal entities carry out this activity.
If you think of starting an activity in Spain, under the Special Regime of the Self-employed workers or of incorporating a company, you will have to choose the correct section of your activity as well as pay the Business Activities Tax.
The Spanish Business Activities Tax is regulated by the Order HAC/85/2003, of January 23rd, which determines in which cases the self-employed and companies are subject to this Tax. The communication depends on the sum of the total invoicing of your Business in Spain and on whether you have declared already some information to the Spanish Tax Office on said sum.
As the net revenues of the companies is known by the Spanish Tax Office through the presumption of several types of returns, only certain companies must declare them, in general terms, companies are exempt from this tax if their turnover is less than 1 million euros.
The taxpayers obliged to the payment of the Business Activities Tax if they have a turnover exceeding 1 million euros, will likewise be exempted from the obligation to file this informative statement related to the net revenues if they have already declared this information in one of the following returns:
- a) In the last Corporate Tax return.
- b) In the Income tax of Natural Persons (IRPF).
Do you wish to start an economic activity in Spain? Do you need to set up a company in Spain? Does your company need an expert accountant to fulfil the tax obligations in Spain? Feel free to contact one of our economists at our law firm in Marbella. We are at your disposal for any tax or legal enquiry.