Corporate income tax Spain

The general rate of Corporate Income Tax Spain is 25%, although depending on the type of company encumbered and the business carried out, different tax rates may be applied. In addition, resident companies pay taxes on their worldwide income.

What you should know about corporate Income Tax Spain

For those establishments considered permanent (PE) of foreign companies in Spain, the Non-Resident Income Tax (NRIT) is charged based on the income that can be assigned to the EP at a tax rate of up to 25%.

On the other hand, it should be noted that the NRIT is also charged both to companies and non-established foreigners who earn income in Spain
As regards newly created companies, they have a 15% tax, both for the first tax period in which profits are obtained and for the next tax period. These rates are applied to companies that by law are considered as capital companies or start-up companies that are part of a national or international group.

There is the possibility that a reduced rate cannot be applied in case the commercial activity has been previously carried out by a related person or entity.

The tax on commercial and professional activities is a direct local tax that is usually charged annually on the performance in Spain of commercial, professional or even artistic activities, regardless of whether or not they are carried out in a specific location.

The tax that must be paid depends on many different factors such as the type of activity carried out, the location or the size of the place where the activity takes place. In any case, it may never exceed 15% of the average earnings of the professional or economic activity performed.

Those paying CIT and non-resident companies that carry out an activity in Spain through a PE will not have to pay this tax if their billing of the fiscal year part of the last declaration of the CIT / NRIT was presented before the Accrual date of the local tax, which is January 1, was less than 1 million euros.

You have doubts? Consult with a professional advisor that provides you with all the help you need with corporate taxes in Spain.

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