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Corporate Income Tax Spain

Fixed rate: 25%

The corporation tax (impuesto sobre sociedades) amounts to 25% in Spain. Losses that have been incurred in the past can be settled.

The corporate income tax return must be submitted in Spain not later than 6 months and 25 days after the close of the financial year. For companies that close the financial year on 31 December, this will be not later than 25 July. Spain does not have an extended financial year.

Branches in Spain without legal personality (‘sucursales‘) from foreign group companies must also submit a corporation tax return in Spain.

New companies

For new companies, a 15% rate applies for the first two profitable years. This reduced rate is usually not applicable for existing foreign parent companies that set up a Spanish subsidiary.

In fact, these new companies must be entirely new and the activities may not previously have been carried out by the person or group companies concerned.

Inspections

Inspections are strict in Spain and more focused on the imposition of additional taxes and fines than on the proper understanding of a correct declaration.

The current situation is that the Spanish tax authorities strictly check whether there is any question of profit transfer abroad and whether intercompany agreements are market-conform and have been documented according to EU mandatory procedures. For companies above certain turnover limits, extensive information requirements apply.

Our advice and policy

It is important to submit the company tax returns in a timely, complete and well-controlled manner.

Our policy is aimed at assisting companies to fully and properly fulfill their obligations so that foreign group management does not have to worry. We don’t go for the limits.

In this way we contribute to companies being able to focus on the core business and not having to invest time and energy in costly tax inspections.

Can we be of service to you?

We can take over the entire tax administration for the Spanish subsidiaries of foreign parent companies and take care of all tax returns.

Do you want more information about this or do you think we can be of service to you?

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