Foreign Exchange Control: No restrictions but government requires prior notification of certain capital movements
Accounting Principles: IAS/IFRS. Financial statements prepared annually.
Business Entities: Principally, public limited company, limited liability company and branch of foreign corporation.
Residence: If incorporated in Spain, registered office or place of effective management is in Spain
Basis: Resident companies subject to tax on worldwide income; non-resident companies subject to tax on Spanish-sourced income subject to provisions of applicable tax treaties.
Rate: 30% with reduced rate for small and medium companies
Foreign Tax: Tax credit to residents for foreign direct taxes. Limited to the lesser of Spanish tax or actual foreign tax incurred.
Other: Deductions available for investments in the environment, R&D, extraordinary profits reinvestment etc.
Tax Year: Accounting period. This may not exceed 12 months.
Residence: Resident individuals subject to tax on worldwide income except for profits on foreign businesses; non-resident individuals only taxed on Spanish-source income (Resident if >183 days in a tax year or the main centre of the persons business or professional activities are in Spain).
Rate: Temporary complementary tax of progressive rates 24.75% – 56%. Savings taxed progressively at 21% – 27%
Capital Gains: Temporary progressive rates 21%-27%
Other: 1% capital duty on shareholders receiving goods/cash from liquidation of a company. 7% transfer tax on capital acquisitions.
Stamp duty: 0.5% (increased to 1% in most regions)
Real estate tax: charged by municipal authorities with a surcharge of up to 10% for 2014 and 2015.
Inheritance tax: between 7.65% – 34%
Net worth tax: 0.2% – 2.5% above certain thresholds
Social Security: 4.7% employee and 23.6% employer
VAT: Standard rate 21%
Member Firm: GMP Auditores