From 2025 onwards, Corporate Tax in Spain maintains its basic structure but introduces a progressive reduction of rates for smaller companies, expanding tax benefits for both micro-companies and SMEs.
The tax remains primarily governed by Law 27/2014, with amendments aimed at gradually reducing the tax burden for companies with lower turnover.
In practice, the applicable rate depends on two key factors: the company’s turnover level and the fiscal year.
Welex, your English-speaking tax advisor in Spain, is pleased to inform you about the reductions in corporate tax rates in Spain.
What is the general corporate tax rate in Spain?
The general Corporate Tax rate in Spain remains at 25%, applicable to most companies that do not meet the requirements to apply reduced rates.
This percentage remains stable and continues to serve as the reference point of the system.
How is Corporate Tax calculated in Spain for companies with a turnover below 1 million euros? (micro-companies)
Micro-companies apply a tax system based on brackets of the taxable base within Corporate Tax in Spain, with a progressive reduction over the coming years.
Fiscal year 2025
21% up to €50,000 of taxable base, meaning the profit of the year.
22% on the remaining taxable base.
Fiscal year 2026
19% up to €50,000 of profit.
21% on the remainder.
From 2027
17% up to €50,000.
20% on the remainder.
This system aims to ease the tax burden on the first profits generated by the smallest companies.
For many Spanish micro-companies, appropriate tax and accounting advice allows them to take full advantage of these reductions in Corporate Tax.
What is the Corporate Tax rate in Spain for companies with a turnover below 10 million euros? (small and medium-sized companies)
Spanish companies with a net turnover below €10 million and above €1 million also benefit from a progressive reduction of the nominal rate.
Reduction schedule:
Fiscal year Applicable rate
2025 24%
2026 23%
2027 22%
2028 21%
From 2029 20%
This gradual decrease in Corporate Tax in Spain aims to strengthen the competitiveness of SMEs and facilitate their growth.
What is the Corporate Tax rate in Spain for newly created companies?
Companies starting an economic activity in Spain may be taxed at 15%: in the first fiscal year with a positive taxable base and in the following tax period.
This incentive is designed to facilitate the consolidation of new business projects.
Is there a Corporate Tax rate in Spain higher than the previous ones?
Yes, there is a particularly increased Corporate Tax rate of 30% for certain sectors.
Certain activities continue to be taxed at this higher rate of 30%, including:
- Credit institutions
- Companies engaged in the exploration and research of hydrocarbons
No progressive reduction is foreseen for these sectors.
Conclusion on the new Corporate Tax rates in Spain
From 2025 onwards, Corporate Tax is structured into three main levels of taxation:
- 25% → general regime
- 24% to 20% (progressive reduction) → companies with turnover below €10 million
- 21% / 22% (decreasing to 17% / 20%) → micro-companies with turnover below €1 million
This new approach introduces a clear logic: the smaller the company, the lower the applicable tax rate will progressively become.
It should be noted that the reduced rate and the gradual tax reduction do not apply to holding companies or asset-holding entities.
From a tax planning perspective, the gradual reduction of rates makes it advisable to analyse business decisions with a multi-year perspective, particularly regarding results, investments, or corporate reorganisations.
Do not hesitate to consult Welex, your English-speaking law and tax firm in Spain, for any questions related to Corporate Tax or other fiscal matters.
This contribution comes from Sara Duarte, who as head of accounting at Welex in Marbella safeguards the tax accuracy of all our clients.
