Business-related Taxes In Spain

In the article I’ll tell you about Business-related Taxes In Spain. It is inevitable to pay taxes when you are doing business in any country, and Spain is no exception. In the good old days, business owners, especially expats often dodged corporate taxes. However, the tax system has changed drastically in the recent past. This has made it mandatory for business owners – both locals and expats to pay taxes. Eluding taxes have now led to high penalty in the country. Tax penalties are high in Spain. But when you compare this amount with that of other European nations, it is quite low.

Business-related Taxes In Spain

Businesses in Spain typically pay three kinds of taxes. These include: corporate income tax, value added tax (VAT) and tax on various other business-related taxes. You need to have detailed information about the corporate taxes. Here are some important points you should keep in mind.


Find the right tax lawyer

For determining the right taxes to include in your business and what you should or should not pay for, it is essential to consult an experienced tax lawyer who can explain you the details about the tax system. If you are an expat doing business in Spain, you should seek an English-speaking tax lawyer who can explain you the tax intricacies.

Know the corporate taxes in Spain

It is important to determine the kind of taxes that are applicable when you are doing a business in Spain. Moreover, it is also important to know how much of tax you have to pay every year. It is important to know about the details of corporate taxes that you have to pay and how much. The National Corporate Tax that is the taxes that businesses pay on the taxable profit is 30%. Those businesses having a turnover of less than 5 million euros have certain exceptions on their total profit. Similarly businesses pay 16% of VAT.

However, for certain products and services, it can vary. There are also certain local taxes that businesses have to pay, which vary from one region to the other. These taxes depend on various factors such as the nature of business, the location of the business (office), whether you are a local or an expat and finally on your income and business assets. It is advisable to pay your taxes in cash to avoid any fraudulent activities.

Income tax return

The income tax return for your business can be filed with the national tax authorities in Spain. This should be done with 6 months from the end of the fiscal year for the company. Businesses with over 6 million euros turnover are expected to the tax in three installments from April to December.

Oftentimes entrepreneurs in Spain believe that they end up paying more tax than they are supposed to. In such a situation, it is a good idea to apply for a rebate when you are submitting the tax return. This will make things clear.

In Spain the tax year is in accordance with the calendar year starting form January 1 to December 31. You would also come across various tax collection centres in all the important cities and towns.

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