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Spain
Companies Taxation

Overview

Spain offers a competitive corporate tax framework within the EU, with a standard corporate income tax rate of 25%. Companies incorporated in Spain or with effective management located in the country are considered tax residents.

Spanish tax-resident companies are taxed on their worldwide profits, while non-resident companies are only taxed on Spanish-source income.

Spanish Tax System for Companies

Standard Corporate Income Tax (CIT) rate is 25%.
Newly created companies may benefit from a 15% reduced rate during the first two years of profit.
Spanish tax-resident companies are taxed on worldwide income.
Non-resident companies are only taxed on Spanish-source income.
Dividends received from qualifying subsidiaries may benefit from participation exemption.
Double tax treaties apply to reduce or eliminate withholding taxes on dividends, interest, and royalties.
Losses can generally be carried forward indefinitely, with limits.
Transfer pricing rules apply for transactions with related parties.
Spain applies an exit tax regime when companies transfer their residence or assets abroad.
Certain regimes apply for holding companies (ETVE) and reorganizations (mergers, spin-offs, etc.).

Requirements and Procedures

Form 036: Tax identification and registration (upon incorporation).
Form 200: Annual corporate income tax return, due within 25 days after the 6 months following the fiscal year-end.
Form 202: CIT advance payments (April, October, and December).
Form 303: Monthly or quarterly VAT returns.
Form 390: Annual VAT summary, due in January.
Form 347: Informative return on transactions with third parties exceeding €3,005, due by end of February.
Form 349: EC sales list (for intra-EU transactions).
Form 115/180: Withholding tax on rental payments.
Form 111/190: Withholding tax on salaries and professional fees.
Form 123/193: Withholding tax on dividends and interest.
Corporate books and annual accounts: Must be filed with the Mercantile Registry annually.
Transfer pricing documentation: Required for companies exceeding thresholds or involved in cross-border related-party transactions.

How Charfort can help you?

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Frequently asked questions

Everything you need to know about the process.

Does my company need to pay taxes in Spain?

If your company is incorporated or effectively managed in Spain, it is likely considered tax resident and subject to CIT on worldwide income.

Can I benefit from the reduced 15% CIT rate?

Yes, if it is a newly created entity engaging in an economic activity, we can assess eligibility and ensure proper application.

What obligations do I have for VAT and withholding taxes?

We determine the correct VAT regime, manage all monthly/quarterly filings, and handle withholdings on rents, salaries, and dividends.

What is the deadline for filing the corporate income tax return?

The annual CIT return (Form 200) is due 25 days after six months from the end of your fiscal year.

How do I ensure transfer pricing compliance?

We prepare or review your Master File and Local File, and assess related-party transaction pricing to align with OECD guidelines.

Can I optimize tax on dividends or foreign subsidiaries?

Yes. Spain offers a participation exemption regime; we help structure holdings to benefit from reduced taxation.

What about cross-border operations and EU VAT rules?

We handle intra-community VAT reporting (Form 349), apply exemptions, and advise on supply chain VAT efficiency.

Can Charfort act as our tax representative in Spain?

Absolutely. We act on your behalf before Spanish tax authorities, ensuring compliance and mitigating risks in audits or reviews.

Contact us today

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

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