Corporate tax in Spain

1. Overview

Corporate tax (Impuesto de Sociedades) is a direct tax on corporate profits obtained within the taxation period, which normally coincides with the calendar year, unless a different period is stated in the company’s articles of association.

In any of the cases the tax period cannot exceed 12 months.

Taxable income is computed with reference to the contributor’s profit and loss account. Contributors are commercial companies, partnerships, joint ventures, Investment Funds, etc.

2. Spanish resident companies

A company is considered Spanish resident in either of he following cases:

  • If the company was incorporated under Spanish law
  • If the company’s registered office is in Spain
  • If the company’s management and head-office are located in Spain.

Although tax rate applicable to the net income of corporations is generally 35%, some specific types of companies such as foundations, cooperatives, associations, and Investment Funds may apply a reduced tax rate of 30%.

This special tax regime is applicable to small and medium sized companies which net turnover does not exceed € 1,502,530.3. These companies may also get tax incentives such as deduction of leasing instalments paid

3. Non-resident companies

Non-resident companies are those without permanent presence in Spain. These are subject to a 25% withholding tax on income obtained in Spain. (35% for capital gains tax).

4. Getting legal help

Our lawyers provide solid legal advice regarding any tax-related issue in Spain:

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