1. 🏛️ What Is Corporate Tax in Spain?
Corporate Tax (Impuesto de Sociedades) is a tax levied on the profits of companies based in Spain. If you run a business in Barcelona through a Spanish SL (Sociedad Limitada) or other structure, this tax applies.
Foreigners who set up or invest in local companies are fully subject to Spanish corporate tax laws — no matter where they reside.
2. 📊 What Is the Corporate Tax Rate in Barcelona?
| Company Type | Corporate Tax Rate |
|---|---|
| General companies | 25% |
| Newly formed companies* | 15% (first 2 years of profit) |
| Non-profits or special entities | Reduced or 0% in specific cases |
*Startups registered under the Startup Law may benefit from enhanced deductions or delayed payments.
Tax is applied to net profit after allowable business deductions.
3. 📅 When and How Is Corporate Tax Paid?
Spanish companies must:
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File an annual return (Modelo 200)
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Make advance payments during the year
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Submit annual accounts to the Mercantile Registry
Key deadlines:
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July 25: Main tax return due (for calendar-year companies)
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April, October, December: Advance payment months
Failure to meet deadlines can lead to penalties and late payment interest.
4. 💼 What Expenses Are Deductible?
Common deductible costs include:
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Staff salaries and Social Security
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Rent and office costs
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Business travel
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Professional services (accounting, legal)
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Equipment and depreciation
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Marketing and software tools
You must maintain invoices and accounting records to justify all deductions.
5. 🌍 Can Foreigners Open a Company in Barcelona?
Yes — non-EU and EU nationals can create a company (SL) in Spain. To do so, you’ll need:
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A Spanish NIE and bank account
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Company registration and tax ID (CIF)
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Local business address
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A certified notary deed of incorporation
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VAT registration (if applicable)
Foreign-owned companies must comply with all tax filing requirements — regardless of shareholder nationality.
6. 🏦 What About Withholding and Dividends?
Spanish companies must:
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Withhold tax (typically 19%) on dividends paid to shareholders
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Withhold income tax on employee salaries
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Withhold tax on certain invoices from freelancers
Double taxation treaties may allow you to reduce withholding on cross-border dividend payments.
7. ⚠️ Common Pitfalls for Foreign Business Owners
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❌ Using a Spanish SL without proper bookkeeping
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❌ Ignoring advance payments throughout the year
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❌ Paying dividends without tax withholding
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❌ Not registering properly with Hacienda
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❌ Assuming a UK Ltd or Delaware LLC exempts you from Spanish rules
Even if your company is inactive, you must still file returns and keep accounts.
8. 👨⚖️ How Borderless Lawyers Supports Your Spanish Business
We offer complete legal + tax support for company owners in Barcelona:
✔ Company formation for foreigners
✔ Corporate tax filing and quarterly declarations
✔ Accounting and annual accounts submission
✔ Advice on tax-efficient structures
✔ Ongoing legal compliance (employment law, director duties, etc.)
Contact us today to manage your company’s tax obligations in Barcelona — and avoid costly surprises.