Spain

Spain - Civil Law (French)
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Spain taxes

If you want to set up a company in Spain, this article will educate you on the tax laws for a LLC (SL) which is the most common company structure in Spain.

Spain taxes resident companies on their worldwide income. Therefore, from our research, and these things do change, offshore income is subject to Income Tax. The country doesn't have major incentives to transfer in offshore income accrued abroad. Corporate Income Tax standard rate is 25% in Spain. This ranks Spain as 102th overall in terms of corp. taxation rate internationally.

The valued added tax rate in Spain is 21.00%, that ranks Spain as 155th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 29.90% to the equivalent of a social security fund and an employee will contribute 6.35%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 90 hours. Contributing to this is the number of yearly labor tax payments, which is 1 in ES.

Thin capitalisation mandates aren't in play. Thin capitalisation refers to any type of requirements on companies' debt-to-asset ratios.
Dividends received are subject to Corporate Income Tax. However, a participation exemption may apply if parent company holds at least 5% of the payer shares for at least 1 year, and subsidiary is subject to CIT of at least 10%, or holding exceeds €20m and is resident of a country where Spain has concluded a tax treaty with. Dividends are distributions of company earnings, passed by the board, to a class of its shareholders. Dividends can be either cash payments, shares of stock, or other property.
Capital Gains are treated as ordinary income and subject to Corporate Income Tax. However, Capital Gains may be tax-exempt if the aforementioned participation exemption apply. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 19%. This means that the taxman expects LLC's to withhold 19% of payments abroad on interests, unless tax is reduced under a tax treaty or exempted under the EU interest directive. The dividends withholding tax rate is 19%. This means that the relevant tax authorities expects relevant legal entities to pay tax on at least 19% of dividends remitted abroad, unless the participation exemption applies or is tax-exempt under the EU parent-subsidary directive or tax is reduced under a tax treaty. The royalties withholding tax rate is 19%. This means that the relevant tax authorities expects LLC's to withhold 19% on royalty payments to non-residents, unless the EU royalties directive applies or tax is reduced under a tax treaty.

There is a tax on individual's net wealth in Spain. There are gift, inheritance, real estate and transfer taxes. We are aware of frequently implemented research and development breaks on taxation in ES.

The above is not tax or legal advice for your individual circumstances. We are able to point you to a lawyer in Spain who can answer all your questions. Contact us today. Click the free consultation button above or press Incorporate now if you are in a hurry.

It takes approximately 33 hours to file and prepare documents for a Spain Civil Law (French).
The corporate tax is approximately 25% which is 103 in the world.

Owners of a company in Spain are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Spain is 21% which ranks 155 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
100Tax treaties
25%Offshore Tax
25%Corp rate
-Loss carryback years
33Corporate time
21%VAT rate
25%Capital gains
2017AEOI planned

Read this to learn about incorporating a company in
Spain

We can help you form a company in Spain. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Spain, which is required by law.

We can help you with your incorporations needs for an initial payment of just $1000.

Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.

Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.

Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.

Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.

Spain Tax Treaties

CountryTypeDate signed
Cyprus
DTC 2013-02-14
Romania
DTC 1979-05-24
South Korea
DTC 1994-01-17
Dominican Republic
DTC 2011-11-16
Greece
DTC 2000-12-04
Ukraine
DTC 1985-03-01
Belgium
DTC 1995-06-14
Russia
DTC 1998-12-16
Turkey
DTC 2002-07-05
United Kingdom
DTC 2013-03-14
Iceland
DTC 2002-01-22
United Arab Emirates
DTC 2006-02-04
Czech Republic
DTC 1980-05-08
Brazil
DTC 1974-11-14
Belarus
DTC 1985-03-01
Poland
DTC 1979-11-15
Trinidad and Tobago
DTC 2009-03-09
Sweden
DTC 1976-06-16
Luxembourg
DTC 1986-06-03
Croatia
DTC 2005-05-19
Turkmenistan
DTC 1985-03-01
Macedonia
DTC 2005-06-20
Barbados
DTC 2010-12-01
Malta
DTC 2005-11-08
Pakistan
DTC 2010-01-01
Philippines
DTC 1989-03-14
Australia
DTC 1992-03-24
Curacao
TIEA2008-06-10
Kazakhstan
DTC 2009-02-07
Aruba
TIEA2008-11-24
Hungary
DTC 1984-07-09
Bahamas
TIEA2010-03-11
Ireland
DTC 1994-02-10
Malaysia
DTC 2006-05-24
Bolivia
DTC 1997-06-30
Mexico
DTC 1992-07-24
El Salvador
DTC 2008-07-07
Bosnia and Herzegovina
DTC 2008-02-05
San Marino
TIEA2010-09-06
Portugal
DTC 1993-10-26
Israel
DTC 1999-11-30
East Timor
DTC 1995-05-30
Panama
DTC 2010-10-07
Italy
DTC 1977-09-08
Senegal
DTC 2006-12-05
Denmark
TIEA2009-11-12
Andorra
TIEA2010-01-14
China
DTC 1990-11-22
Indonesia
DTC 1995-05-30
Jamaica
DTC 2008-07-08
Netherlands
DTC 1971-06-16
Finland
DTC 1967-11-15
Sint Maarten
TIEA2008-06-10
Chile
DTC 2003-07-07
Georgia
DTC 2010-06-07
Moldova
DTC 2007-10-08
Uruguay
DTC 2009-10-09
Venezuela
DTC 2003-08-04
Morocco
DTC 1978-07-10
Tajikistan
DTC 1985-03-01
New Zealand
DTC 2005-07-28
Algeria
DTC 2002-10-07
Hong Kong
DTC 2011-04-01
Cuba
DTC 1999-02-03
Egypt
DTC 2005-06-10
Azerbaijan
TIEA2009-11-12
Canada
DTC 1976-11-23
Thailand
DTC 1997-10-14
Armenia
DTC 2010-12-16
South Africa
DTC 2006-06-23
Iran
DTC 2003-07-19
Costa Rica
DTC 2004-05-04
Saudi Arabia
DTC 2007-06-19
Lithuania
DTC 2003-07-22
Colombia
DTC 2005-03-31
Ecuador
DTC 1991-05-20
Estonia
DTC 2003-09-03
Serbia
DTC 2009-03-09
India
DTC 1993-02-08
Argentina
DTC 2013-03-11
Austria
DTC 1966-12-20
Slovakia
DTC 1980-05-08
Nigeria
DTC 2009-06-23
Slovenia
DTC 2001-05-23
Tunisia
DTC 1982-07-02
Kyrgyzstan
DTC 1985-03-01
Norway
DTC 1999-10-06
Latvia
DTC 2003-09-04
Kuwait
DTC 2008-05-26
Japan DTC 1974-02-13
United States
DTC 1990-02-22
Albania
DTC 2010-07-02
Singapore
DTC 2011-04-13
Uzbekistan
DTC 2013-07-08
Bulgaria
DTC 1990-03-06
France
DTC 1995-10-10
Germany
DTC 2011-02-03
Peru
DTC 2006-04-06
Switzerland
DTC 1966-04-26
Vietnam
DTC 2005-07-03

Country Info

National Flag of
Regne d'Espanya (cat)
Espainiako Erresuma (eus)
Reino de España (glg)
Reialme d'Espanha (oci)
Reino de España (spa)
Currency
EUR
Area Code
+34
Capital
Madrid
Region
Southern Europe
Native Languages
Catalan

Galician
Occitan
Spanish