Investors operating on the Spanish market are required to pay several corporate taxes, as prescribed by the commercial legislation applicable here. Starting with 1st of January 2016, the level of corporate taxation has been lowered, from a rate of 28% to 25%. The tax rate is applicable to both legal entities established on the local market, as well as for foreign companies represented in Spain through a permanent establishment. Our team of Spanish company formation representatives can offer assistance on the taxes applicable to companies in Spain and can present in-depth information referring to taxable periods available here.
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Company taxes in Spain
Spanish companies are required to pay several taxes, such as the corporate tax and the value added tax. It is important to know that, starting with 2016, small companies (which are defined by a small number of employees), are imposed with a 25% corporate tax when the turnover of the company is lower than EUR 10 million.
Newly incorporated companies are required to pay a smaller corporate tax, which was established at 15%, starting with 1st of January 2015.
Spanish businesses are also imposed with the business and professional activities tax, which is applicable to various categories of entities carrying operations in the business of artistic fields. Businessmen should know that this tax can’t be imposed on a higher value than 15% of the taxable profits of the respective entity; our team of Spanish company formation agents can offer more details on the above mentioned taxes.
Payment of the corporate taxes in Spain
According to the applicable law, the investors have to pay the corporate tax in specific periods of the year. As such, the corporate tax is due within a period of six months and 25 days after the accounting period has ended.
Instalments of the corporate tax are paid in three periods: April, October and December. Companies are also liable to capital gains tax.
Businessmen interested in receiving further details on how to pay taxes in Spain can address to our team of Spanish company incorporation representatives.