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Company taxes in Spain

How to start a Spanish limited company. Incorporation or formation of a company in Spain.

 

 

Companies and taxation in Spain

There are tax advantages for groups or individual companies, which may wish to establish in Spain. The country is not a tax haven, but there is a network of double tax agreements that offer some big advantages.

Requirements and steps for the registration of a company in Spain

Once it is incorporated, the company must register with the Tax Services.

Corporate tax in Spain

In 2012, based on the taxable profits:

  • Corporate tax is 25% for profits up to € 120,202 if the company has profits up to 3 million euros.
  • Corporation tax for big companies is at 30%
  • There are local taxes that could be as high as 0,75%

Withholding taxes on Dividends

Normally this is 21%, but it can be reduced to zero when:

  • It is another company of the European Union
  • In case of many double taxation agreements
  • A major shareholder is subject to a special exemption

IVA-VAT

Vat is in general at 21%. Returns are due every three months- those paying excess input VAT, can get on a monthly scheme.