The Spanish tax system is complex, with a variety of taxes and duties that apply to companies operating within its borders. Corporate income tax, value-added tax, and import duties are among the primary taxes that companies are required to pay. The tax brackets and rates for each tax vary depending on the type of tax and the specific circumstances of the company. By understanding the different types of corporate taxation in Spain, companies can ensure that they comply with all applicable tax laws and minimize their tax liabilities.
Corporate Income Tax:
Corporate income tax (CIT) is a direct tax levied on companies operating in Spain. The CIT rate is currently set at 25%, and this applies to all types of companies, including foreign companies operating in Spain. This rate is set by the Ley 35/2006, de 28 de noviembre, del Impuesto sobre la Renta de las Personas Físicas y de modificación parcial de las leyes de los Impuestos sobre Sociedades y sobre la Renta de no Residentes.
In general, companies are required to pay CIT on their worldwide income. However, if a foreign company operates in Spain through a permanent establishment, then it is only required to pay CIT on the income generated within Spain. The tax authorities in Spain typically require companies to file their CIT returns on an annual basis.
The Value-Added Tax (VAT) is a tax on the value added to goods and services at each stage of production and distribution. The standard VAT rate in Spain is currently set at 21%. However, there are also reduced VAT rates, which apply to certain goods and services, such as food, medical supplies, and cultural events.
In Spain, companies are required to register for VAT if they engage in taxable activities and their annual turnover exceeds a certain threshold. The current VAT registration threshold is €35,000 per annum.
Sales tax is not levied in Spain. Instead, VAT is the primary indirect tax that applies to the sale of goods and services.
Spain is a member of the European Union, and as such, imports from other EU countries are not subject to import duties. However, imports from non-EU countries are subject to various import duties, including customs duties, VAT, and other taxes.
The customs duties that apply to imports from non-EU countries vary depending on the type of goods being imported. The rates of duty are generally set by the European Union's Common Customs Tariff (CCT), which is updated on an annual basis.
There are no export duties levied on goods exported from Spain.