Companies operating in Spain—whether resident or non-resident—must comply with specific corporate tax rules. Understanding your tax obligations is critical for staying compliant, avoiding penalties, and structuring your business efficiently.
This guide explains how corporate tax in Spain works and what both domestic and foreign companies need to know.
📊 Who Pays Corporate Tax in Spain?
You are liable for Impuesto de Sociedades (Corporate Income Tax) if your company:
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Is incorporated in Spain, or
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Is managed and controlled from Spain, even if registered elsewhere
Non-resident companies with a permanent establishment (e.g., branch office) in Spain are also taxed on Spanish-source profits.
🧾 Corporate Tax Rates
| Entity Type | Tax Rate |
|---|---|
| Standard companies (SL/SA) | 25% |
| New companies (first 2 years of profit) | 15% |
| Non-profits | 10% or exempt |
| Credit institutions and oil companies | 30% |
📅 Key Filing Deadlines
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Annual return (Modelo 200): Within 25 days of the six months following the end of the fiscal year
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Quarterly payments (Modelo 202):
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April (Q1), October (Q3), December (Q4 advance)
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🔔 Failure to file on time can result in fines, surcharges, and interest.
📁 Tax Obligations for Companies
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Register for a CIF/NIF (tax ID)
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Keep accurate accounting records
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File annual accounts with the Commercial Registry
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Submit tax returns (income tax, VAT, withholdings, etc.)
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Retain invoices and documentation for 6 years
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Appoint a tax representative if non-resident
💶 Other Business Taxes
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VAT (IVA): Standard rate is 21%
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Withholding tax: On dividends, interest, and salaries
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Local taxes: Business activity tax (IAE), property tax (IBI), waste collection fees
🌍 Double Taxation Agreements (DTAs)
Spain has signed 90+ tax treaties to avoid double taxation. These agreements may reduce withholding taxes and clarify tax residence for foreign investors.
🧮 Deductions and Credits
Companies can deduct:
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Business expenses
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Depreciation
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R&D investments
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Donations (limited)
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Losses carried forward (with limitations)
🤝 How Borderless Lawyers Can Help
We assist companies in:
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Registering for tax and managing deadlines
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Optimizing business structure for tax efficiency
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Filing annual and quarterly returns
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Avoiding double taxation for cross-border entities
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Liaising with the Spanish Tax Agency (AEAT)