Spain Tax Guide

Spain

Currency: Euro

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.

Corporate Taxation

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.

Personal Taxation

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

Emails:
Jose M. Antonino: jmantonino@gmpauditores.com
Juan Jose Giro: jjgiro@gmpauditores.com