Tax in Spain, Tax in Marbella.
In Spain, the company tax is to companies what the income tax is to individuals. 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.
In Spain, the company tax (the Spanish Impuesto sobre Sociedades) rate for both large and small companies is 25%. However, we will state below some other rates, including the rates of 20%, 15% and 1%. As communities can make their own tax laws, some communities, such as the Basque Community (with the exception of Navarra), have a fixed corporate rate of 28%.
This tax is one of the most important taxes for self-employed individuals who have companies, as well as for normally limited and single shareholder companies. Since 2016, civil companies have also been obliged to pay this tax.
This type of taxation may be laborious, as companies are obliged to keep records to an accountancy. However, our advisors are at your disposal in order to help you to carry out these formalities correctly.
With regard to tax rates, here are some of the most common ones:
- The general tax rate of 25% became valid on the 1st of January, 2016. When we look at previous years, the rate was 30% in 2014, however, tax reform introduced a progressive reduction. In 2015, the rate came down to 26%, and the rate was 25% in 2015.
- Nevertheless, there is a 15% tax rate for individuals starting their own businesses for their first two years (estate companies are excluded from this). If you wish to have this reduction, it is essential to be considered as a company that is just starting its economic activity. 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.
- In the case of cooperatives, there is also a small reduction as this tax rate is 20%.
The Spanish legislation sets forth that specific, special entities have different tax rates than other entities.
- For foundations correctly registered at the Registry and for associations declared as public utility associations, the tax rate is 10%.
- For investment companies, whether of variable stock capital as real estate investments or of investment funds of a financial nature, provided they have a minimum of one-hundred shareholders, the tax rate is 1%.
Do you have a company in Spain and need an expert accountant who speaks your own language? Do you wish to start a new economic activity in Spain? Do you need to know more about the corporate tax in Spain? If so, please do not hesitate to contact our law firm of tax advisors and accountants in Marbella. We render services regarding taxes, legal issues and corporate accountancy for all of Spain.