Spain
Companies Taxation

Overview

Spain imposes corporate income tax on companies operating within its territory. The general rate is 25%, with reduced rates for certain newly created entities and startups.

Spain’s tax regime includes transfer pricing rules, anti-avoidance regulations, and EU-aligned reporting obligations.

Spanish Tax System for Companies

Standard corporate income tax (CIT) rate is 25%.
Newly created companies may benefit from a reduced 15% rate for the first two years of profit.
Entities under the Special Regime for Small Enterprises (ERD) may enjoy additional tax advantages.
Tax consolidation regime available for group entities.
R&D tax credits and innovation incentives can reduce effective tax rates.
Transfer pricing rules apply to related-party transactions; documentation required.
Capital gains generally taxed as ordinary income.
No withholding tax on dividends paid to EU parent companies under the Parent-Subsidiary Directive.
Spain has over 90 double tax treaties to avoid international double taxation.
Municipal taxes and regional surcharges may also apply depending on the business activity and location.

Requirements and Procedures

Register the company and obtain a Spanish Tax ID (NIF) from the Tax Agency (AEAT).
File corporate income tax return (Modelo 200) annually within 25 days after 6 months from fiscal year-end.
File advance corporate tax payments (Modelo 202) in April, October, and December.
Maintain proper accounting records and prepare annual accounts for submission to the Mercantile Registry.
VAT registration and monthly/quarterly VAT filings (Modelos 303, 390).
Submit informative returns: Modelo 232 (related-party transactions), Modelo 347 (annual transactions with third parties).
Keep accounting books digitally and submit electronically upon request (SII regime).
File withholding tax returns for employees, professionals, and landlords (Modelos 111, 115).
Fulfill transfer pricing documentation obligations where thresholds are met.
Compliance with UBO (Ultimate Beneficial Owner) and anti-money laundering regulations.

How Charfort can help you?

Incorporation and tax registration of Spanish companies.
Preparation and filing of Modelo 200 and Modelo 202.
Design of tax-efficient corporate structures.
Compliance with VAT, withholding, and informative obligations.
Transfer pricing analysis and documentation support.
Application of R&D tax credits and incentives.
Liaison with Spanish tax authorities on audits and queries.
Preparation of annual accounts and coordination with auditors.
Risk assessment and tax compliance health checks.
Cross-border structuring and double tax treaty analysis.

Frequently asked questions

Everything you need to know about the process.

What is the standard corporate tax rate in Spain?

It is 25%, with a reduced 15% rate for qualifying new companies in their first two profitable years.

What tax returns must a Spanish company file?

Modelo 200 (annual CIT), Modelo 202 (advance payments), and various VAT and withholding returns.

Are there incentives for R&D activities?

Yes, companies can claim significant tax credits for qualifying R&D and innovation expenditures.

What is the deadline for filing corporate tax returns?

Modelo 200 must be filed within 25 days after six months from fiscal year-end.

How are intercompany transactions regulated?

Through strict transfer pricing rules aligned with OECD guidelines.

Do Spanish companies need to file VAT returns?

Yes, typically monthly or quarterly using Modelo 303 and an annual summary using Modelo 390.

What are informative returns?

Reports such as Modelo 232 and 347 that disclose specific financial or operational information.

Can Charfort assist with audits or tax disputes?

Absolutely. We provide full representation before Spanish tax authorities.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

Talk with an expert