Taxes in Spain
The Kingdom of Spain is a picturesque, colorful, cheerful country, which is located in the southeastern part of Europe, occupies 80% of the Iberian Peninsula, as well as several other islands.
The capital of Spain, Madrid, is the economic, tourist and financial center of the country. The population is 46 people. Spain is a developed country in which there are several main areas that bring the majority of money into the treasury.
Despite the fact that the global financial crisis of 2008 resulted in serious economic and social problems, today both experienced and just beginning businessmen are striving to work and earn income in this country.
The developed sectors of the economy in the kingdom are:
- agriculture (crop growing, growing citrus fruits, olives, tobacco);
- fisheries and livestock farming;
- industrial complex with its mechanical engineering, mining sector, shipbuilding, light, textile and food industries (wine making, vegetable oils);
- tourism.
There is growing interest from investors and businessmen regarding doing business in Spain. The local tax system with various loyalty programs, as well as a stable, reliable banking sector are especially appreciated.
Taxes in Spain cannot be called the lowest, but, by European standards, tax rates allow the successful development of commercial areas of various types in this jurisdiction.
The company "E-COMMERCE BROKER" provides comprehensive financial and accounting services, and also helps businessmen understand in detail all the intricacies taxation in Spain. We'll take over organizing a business in Spain and we will do everything possible so that you can successfully start earning money in this amazing European country.
Types of taxes for legal entities in Spain
The state taxation system has three levels:
- national - taxes on the activities of residents and non-residents;
- regional - includes payments for real estate transactions, transfer of ownership, and so on;
- local - paid to the budget of a particular region.
The kingdom has signed a double taxation agreement with many countries of the world community.
- Income tax.
Any legal entity, regardless of the form of business, conducting commercial activities in Spain is subject to income tax. This tax is classified as a national tax and is valid throughout the kingdom. Tax rates may vary depending on the location of the company:
- the standard rate for Spain is 25%;
- for the Basque Country - 28%;
- for Navarre - 30%.
In addition, a number of enterprises can count on a preferential percentage of income tax:
- for new companies that have just started operating in Spain, the rate is reduced to 15%, and is valid for the next 2 years;
- a company registered with a registered office in the free economic zone of the Canary Islands is taxed at a rate of 4%;
- for organizations that did not make a profit during the previous tax period, but suffered losses, the rate is 0%.
- VAT (IVA).
Depending on the type of service and product, VAT has different rates:
- 21% - standard rate;
- 10% - reduced, applicable to food products, medicines, passenger transport services, hotel services;
4% - low for essential products: bread, vegetables, fruits, books and drinks.
Help with taxes from E-COMMERCE BROKER
At E-COMMERCE BROKER you can count on assistance in the following operations: business registration in Europe, opening a European bank account, tax consulting, obtaining licenses.
