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Spanish Corporate Tax 2022

04/21/2015 Marina Rodriguez

The key information you need to know about Spanish corporate tax rates for the years 2014, 2015 and 2016.

Residence

According to Spanish law, any company incorporated in Spain – with a registered office in Spain or its effective management in Spain – is resident in Spain and subject to Spanish corporate tax. Resident companies are charged corporate tax on worldwide profits and capital gains. Non-resident companies are taxed on their Spanish-source income and gains according to the guidelines of the relevant tax treaty. Branches are generally taxed in a similar way to subsidiaries.

What is the taxable income?

The taxable income is the amount left over when deductible expenses are subtracted from the profits, calculated according to the balance sheets of the company. Some expenses are not considered deductible for tax purposes. Disallowable items are:

– Penalties and fines.
– Corporation tax payments.
– Gifts and donations (except to certain organisations).
– Expenditure on improvement and enhancement of capital assets.
– Depreciation over maximum prescribed rates (unless proven that it was in fact real depreciation).

For taxable years 2013, 2014 and 2015, the depreciation rates applicable to tangible assets are limited to 70% of the maximum rates provided by law for corporate taxpayers with a turnover exceeding €10 million.

Corporate Tax Rates Applicable to 2018

	2018
General rate of corporate tax	25%
Companies dedicated to the exploration, investigation and exploitation of hydrocarbon deposits and other activities (law 34/1998).	25%
Newly-created companies, applicable to the first two years in which they obtain a taxable profit.	Profit under €300,000: 15% Others: 20%
Small companies with turnover in the previous year under 5 million euros and with less than 25 employees.	Profit under €300,000: 20% Others: 25%
Medium-sized companies with previous year turnover under 10 million euros.	Profit under €300,000: 25% Others: 30%

Losses

Operating losses may be carried forward for up to 18 years, starting from the first period in which profits are earned. Tax losses can be carried forward up to 10 years. The carry back of losses is not permitted. For tax periods from 2001 to 2015 limitations apply on the use of the net operating losses if it is a big company.

What are the allowances and deductions in Spain?

Deductions are available for investments in the environment, double tax relief on dividends (subject to certain requirements), double tax relief for capital gains derived from the transfer of shares (under certain circumstances) and extraordinary profits reinvestment.

Capital gains derived from a holding non-resident company are exempt under two conditions:

If there is a treaty for double taxation that includes an exchange of information clause with the country in which the company is resident.
If the paying entity is subject to a tax equivalent to the Spanish corporate income tax (subject to certain requirements).

Tax Year

The tax year (1 January to 31 December) coincides with the accounting period. The tax period must not exceed 12 months.

When is corporate tax due?

Corporate tax must be filed and taxes paid within six months and 25 days of the close of the fiscal year (31 December). Corporations are required to make three advance payments of income tax in April, October and December of each year.

Other Taxes on Corporations

Payroll tax – Withholding tax on income from employment is applicable on payroll (i.e. in relation to personal income tax).
Social security – Read our article Employment, Payroll and Dismissal for more information.
Council tax – Read our article Council Tax in Spain for more information.
VAT – Read our article Spanish VAT (IVA) for more information.
Capital duty –

Capital duty at a rate of 1% is applicable to:

The reduction of share capital (including demergers) – payable by the partners or shareholders.
The liquidation of a company – payable by the partners or shareholders.
Any other partner contribution that does not increase the share capital.

I have an inactive company, do I have to declare corporate tax?

Yes, the declaration must be made even if the company is inactive.

Small Companies Tax Package
We offer a tax returns, accounting and advice package for small companies from just €150 per month.

Spanish Tax Return (RENTA 2022)

Employment, Payroll and Dismissal

Spanish VAT (IVA)

Starting a Business in Spain – Registration of the Business and Formation of the Company

Starting a Business in Spain – Registration of Self–Employment (Autónomo)

Tax Advice for the Self–employed in Spain

Spain’s New Inheritance Tax Law for Non-Residents of Spain

02/18/2015 Rafael Guerrero

Spain has responded to the European Court of Justice’s ruling of 3 September 2014 condemning Spain’s inheritance law as “discriminatory” against non-residents of Spain.

On 27 November 2014, Spain’s new inheritance tax law was passed. Read on to learn about these recent changes to Spanish inheritance tax rules and how they could affect you.

Spain’s Previous Inheritance Tax Law

Under the previous Spanish inheritance tax law, each of Spain’s 17 autonomous communities was free to amend the State rules, thus setting its own particular fiscal reductions on Spanish inheritance tax. However, these tax reductions were only applicable to Spanish residents. Non-residents of Spain were subject to the Spanish State’s much less favourable inheritance tax rates. This resulted in discrepancies, at times very large, between the inheritance tax residents and non-residents of Spain were liable to pay.

Read Andalucía Lawyers’ article The EU Court Rules that Non-Resident Inheritance Tax in Spain Is Illegal to find out more about the ECJ’s ruling and its implications.

Spain’s New Inheritance Tax Law

Coming into effect on 1 January 2015, Spain’s new inheritance tax law includes four important changes:

If the deceased was a Spanish resident and the beneficiary is a non-Spanish resident, but an EU or EEA national, the beneficiary will be obliged to pay inheritance tax according to the tax rates of the autonomous community in which the deceased resided.
If the deceased was a non-resident of Spain living in the EU or EEA with assets in Spain, the beneficiary will pay inheritance tax according to the tax rates of the autonomous community where the deceased’s highest valued assets in Spain are located.
If an EU or EEA national who is a non-resident of Spain acquires property in Spain as a gift or inter vivos gift, the beneficiary will pay tax according to the inheritance tax laws of the autonomous community where the property is located.
If a Spanish resident acquires property in a Member State outside of Spain as a gift or inter vivos gift, then the beneficiary will pay tax according to the inheritance tax laws of the autonomous community where they reside.

Am I a Spanish resident?

You are considered a Spanish tax resident if:

You spend a total of 183 days a year in Spain.
Your “centre of vital interests” is in Spain. In other words, if your spouse is a Spanish resident and you’re not legally separated, you’re considered a Spanish resident.

Determining Place of Residence for Spanish Inheritance Tax

Place of residence in Spain is considered to be the autonomous community where the deceased lived for the longest period of time during the five years prior to their passing.

Obtaining a Tax Refund

Non-residents of Spain who are EU or EEA nationals and have paid the “discriminatory” Spanish inheritance or gift tax during the past four years now have the option of applying for a tax rebate. This involves claiming back the difference between the tax they paid and the amount they would have paid had it been calculated according to the relevant autonomous community’s tax regulations, as determined by Spain’s new inheritance tax law. The Spanish treasury may also be obliged to pay interest of 15% – 20% on the amount due.

However, there is a time limit on claims; you have only five years to make a claim from the time of the inheritance. Furthermore, you can only apply for a refund once.

Contact Us

If you think you may be affected by these changes to Spain’s inheritance tax law, it is essential you consult an experienced Spanish tax expert. Contact us at Andalucía Lawyers to arrange an in-person consultation in one of our offices in Granada or Marbella, over email or telephone, to discuss how Spain’s new inheritance tax law could apply to your situation.

Important Changes to Spanish Inheritance for Expats

The EU Court Rules that Non-resident Inheritance Tax in Spain Is Illegal

Spanish Inheritance

Spanish Inheritance Tax

Spanish Wills

How Do I Know if I’m a Spanish Resident or Non-resident for Tax Purposes?

Pensioners with a Foreign Pension in Spain Have Until 30 June 2015 to Regulate Their Taxes

02/13/2015 Marina Rodriguez

Are you an expat retiree or a Spanish pensioner receiving a foreign pension in Spain? If so, you have until 30 June 2015 to make sure your taxes are correct and up to date or you risk facing a hefty penalty.

What is this due to?

A greater exchange of information between international tax authorities has alerted the Spanish Treasury to the fact that a great number of foreign pensioners, and Spanish retirees who have returned to Spain after working abroad, are not abiding by Spain’s tax laws when it comes to declaring the income they receive from their overseas pensions. It appears a lot of pensioners erroneously believe they can receive a foreign pension in Spain and not declare it. If you are resident in Spain then you are also considered a Spanish tax resident and, as such, must declare all your worldwide income, including pensions.

Am I a Spanish tax resident?

You are considered a Spanish tax resident if:

You spend a total of 183 days a year in Spain.
Your “centre of vital interests” is in Spain. In other words, if your spouse is a Spanish resident and you’re not legally separated, you’re considered a Spanish resident.

Am I required to declare income tax?

If you’re a Spanish tax resident and your total income exceeds €11,200 you are required to declare income tax in Spain, regardless of your pension’s value.

It is worth noting that even if you receive less than the minimum threshold income, making an annual tax declaration is still recommended. If there is no record of you as a Spanish tax resident, legal matters such as inheritance or selling a property could become a lot more complicated. Additionally, if you are thinking of applying for a residence certificate, you will have to provide proof that your pension is being paid into a Spanish bank account.

Exceptions

Civil servant pensions are taxed in their country of origin.

A Six Month Grace Period

The Spanish Tax Office recognises that many pensioners are elderly, with modest incomes, and are simply not aware of Spanish tax legislation. For this reason, the Spanish Treasury has granted a grace period of six months, from 1 January 2015 to 30 June 2015, during which pensioners can put their tax affairs in order without risking sanctions.

What does this mean?

It is important you ensure your previous Spanish Income Tax declarations from 2010-2014 were correct, and you declared all your taxable income, including any overseas pensions.
If any changes need to be made, you must file an amended declaration.
If there is any tax owed you will have to pay 100% of the outstanding sum to the Spanish Treasury. Delayed payment and installment plans have been set up for this purpose.
Any surcharges, interest charges for late payment, and penalties will be waived if you update your tax situation within the six month grace period beginning 1 January 2015.
If the Spanish Treasury has already checked an income tax return and found you to be guilty of not declaring your overseas pension, you may be able to take advantage of the grace period to claim back any sanctions and penalties already paid. Contact us to see if you are eligible for a refund of this type.

How can I be sure my Spanish taxes are up to date?

Very simply, contact us! Due to the complexity of Spanish tax laws, it is important you employ an experienced Spanish tax expert to ensure your taxes are in order before the grace period expires. We will manage all the paperwork for you according to your personal tax situation, and make sure you understand any steps that need to be taken.

Do it now!

After the six month grace period is up, it is highly likely that the Spanish tax authorities will carry out an inspection campaign. Those pensioners found to be in breach of the Spanish tax laws may face hefty financial penalties. Don’t let it slide, get your taxed checked now for your own peace of mind and the good of your pocket!