Tax minimization in Spain is based on legal measures which allow local and foreign companies to reduce the level of taxes they have to pay. Tax minimization can be achieved through incentives offered by the state to local companies or through the double taxation treaty signedby two states. The government can also provide other types of tax minimization procedures; our company formation agentscan offer you all the legal measures related to tax minimization in Spain.
Tax minimization procedures in Spain
Non-resident individuals and companies are taxed only for the income they obtain throughout their business activities in Spain.
According to the Spanish law, a resident is a person who has been living for more than 183 days in Spain; also, if a person has business activities here, he or she can also be considered a resident.
Investors are invited to watch the next presentation for further details on the tax minimization procedures available in Spain:
A foreign investor in Spain should know that he or she has the right to choose if the corporate tax will be paid in Spain or in the country of origin, as long as Spain has signed a double taxation treaty with the respective state.
In 2015, the Spanish government has reduced the corporate tax rate from 30% to 28%, and starting with the beginning of 2016, the companies set up here will benefit of a new reduction for the corporate tax, which will be lowered to a rate of 25%.
Small and medium companies can benefit from a reduction of the income tax rate; our company formation specialists can provide further information on this tax measure. From the beginning of 2015, all new incorporated companies benefit of a corporate tax rate of 15%, applicable to the first two years of activity with taxable profits.
•company tax – is paid as a percentage of the profits obtained by the company;
•social security tax – paid by the employer for each employee working in the company;
•value added tax (VAT) – the standard VAT is established at a rate of 21%, but it may vary according to the field of activity; you can find out more on the VAT rates from our company formation specialists in Spain.
Call us now at +34 914 547 020 or +34 933 443 365 to set up an appointment with our specialists in company formation in Madrid and Barcelona. Alternatively you can incorporate your company without traveling to Spain.
As a Lecuidy Law Boutique SLP client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Spain.
I have had a very good collaboration with the specialists in company registration from CompanyFormationSpain.com. They answered to my requests rapidly and they managed to open a company in just a few days after I had sent all the required documents for my clients.
Cristian Darie, Partner of
Darie, Manea & Associates www.rolegal.com