Tax on Economic Activities in Spain

1.Overview

The Spanish tax on economic activities (Impuesto de Actividades Económicas – IAE) is a direct tax levied annually on the exercise of a business, professional, or artistic activity, regardless this activity is performed in business premises or not.

An official activity code will be provided upon registration of your business with the Spanish Tax Authorities for tax on economic activity purposes, then your business will become liable for taxes such as VAT, Personal Income Tax;

Your business liability for the purpose of this tax will depend on various factors such as the type of work performed, the size of your business premises, head office location;

2.Taxable period

The economic activities tax period is the calendar year.

3.What is the amount of the tax? When should it be paid?

The tax consists of a fixed amount that must be paid annually to the Spanish Tax Authorities. However, most SMEs are exempt from this tax.

4.Getting legal help

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

Ask an English-speaking Spanish lawyer now.

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