{"id":149762,"date":"2026-10-08T10:32:34","date_gmt":"2026-10-08T10:32:34","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=149762"},"modified":"2026-10-09T12:56:05","modified_gmt":"2026-10-09T12:56:05","slug":"spain-tax","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/spain-tax\/","title":{"rendered":"Spain: Tax"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-149762","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax","jurisdictions-spain"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Monereo Meyer Abogados<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/01\/MMMM_Logotype_RGB.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Monereo Meyer Abogados<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/01\/MMMM_Logotype_RGB.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax laws and regulations applicable in Spain<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How often is tax law amended and what is the process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Spanish tax legislation is frequently amended through annual budget measures, Royal Decree-Laws and specific tax reforms. For 2026, relevant developments include the phased reduction of Corporate Income Tax rates for micro-enterprises and entities qualifying as small and medium-sized enterprises under Law 7\/2024, as well as new and expanded information-reporting obligations that apply from 2026 following Royal Decree 253\/2025. Tax legislation is generally approved by Parliament through the ordinary legislative process, although Royal Decree-Laws may be adopted by the Government in cases of extraordinary and urgent need and must subsequently be validated by Congress. Tax reforms are also increasingly influenced by EU legislation and OECD initiatives, particularly BEPS and the two-pillar project.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the principal administrative obligations of a taxpayer, i.e. regarding the filing of tax returns and the maintenance of records?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayers must file periodic self-assessments and information returns, on a monthly, quarterly or annual basis depending on the tax and the taxpayer. Companies must keep accounting records in accordance with the Commercial Code and the Spanish General Accounting Plan, file annual accounts with the Commercial Registry and comply with census obligations, generally through Form 036. Accounting books and supporting documentation must generally be retained for at least six years under commercial law, without prejudice to the tax statute of limitations and specific tax record-keeping rules. Electronic filing is standard and the AEAT continues to expand real-time and third-party reporting systems. From 2026, certain financial reporting obligations have been expanded, including changes affecting Forms 196 and 170 and the new Form 174, which will first be filed in January 2027 in respect of 2026 information.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key tax authorities? How do they engage with taxpayers and how are tax issues resolved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Spanish Tax Agency (AEAT) is the main tax authority at national level and is responsible for management, inspection and collection of State taxes. The Autonomous Regions administer certain assigned taxes, including Inheritance and Gift Tax and, in many cases, Transfer Tax and Stamp Duty, while municipalities administer local taxes such as Property Tax (IBI) and the Tax on the Increase in Value of Urban Land. The Directorate General for Taxation issues binding tax rulings. The AEAT engages with taxpayers mainly through its electronic office, electronic notifications, assistance services, verification procedures, audits and collection proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax disputes heard by a court, tribunal or body independent of the tax authority? How long do such proceedings generally take?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax disputes are first reviewed through administrative reconsideration or, more commonly, before the Economic-Administrative Courts (TEAR and TEAC), which are separate from the AEAT although they form part of the Ministry of Finance. Their decisions may subsequently be challenged before the contentious-administrative courts, including the National Court, High Courts of Justice and, where applicable, the Supreme Court. Statutory resolution periods exist, but in practice complex proceedings may take several years. Cross-border disputes may also be addressed through Mutual Agreement Procedures (MAPs), and transfer pricing matters may be dealt with prospectively through Advance Pricing Agreements (APAs).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the typical deadlines for the payment of taxes? Do special rules apply to disputed amounts of tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For tax debts resulting from assessments notified by the tax authorities, the voluntary payment deadline depends on the date of notification under Article 62 of the General Tax Law: assessments notified between the 1st and 15th of a month are generally payable by the 20th of the following month, while those notified between the 16th and the end of the month are generally payable by the 5th of the second following month. Self-assessed taxes follow the specific filing and payment calendar for each tax. Challenging an assessment does not automatically suspend payment, although suspension may be obtained with appropriate guarantees and, in certain cases, without guarantees. Penalties are generally suspended automatically while an administrative appeal is pending.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax authorities subject to a duty of confidentiality in respect of taxpayer data?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Article 95 of the General Tax Law establishes the reserved nature of taxpayer information held by the tax authorities. Such information may only be disclosed in the cases expressly permitted by law, including cooperation with courts, other public authorities and international tax administrations. These rules operate together with the GDPR and Spain&#8217;s data-protection legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is this jurisdiction a signatory (or does it propose to become a signatory) to the Common Reporting Standard?  Does it maintain (or intend to maintain) a public register of beneficial ownership?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Spain participates in the OECD Common Reporting Standard (CRS) and in the automatic exchange of financial account information. Spain also maintains a Central Register of Beneficial Ownership, created by Royal Decree 609\/2023 and managed by the Ministry of Justice. Access is available to competent authorities and obliged entities and, subject to the applicable legal conditions, to persons or organisations able to demonstrate the required legitimate interest. Beneficial ownership information is also collected through other corporate and anti-money-laundering reporting channels.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the tests for determining residence of business entities (including transparent entities)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article 8 of the Corporate Income Tax Law, an entity is tax resident in Spain if any of the following conditions is met: (i) it was incorporated under Spanish law, (ii) its registered office is located in Spain, or (iii) its place of effective management is in Spain. The place of effective management is where the direction and control of the entity&#8217;s overall activities are exercised. Spanish law also contains a rebuttable residence presumption for certain entities located in zero-tax or tax-haven jurisdictions where their main assets or activities are situated in Spain. The treatment of fiscally transparent foreign entities is determined by reference to their legal and tax characteristics and the specific Spanish classification rules.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do tax authorities in this jurisdiction target cross border transactions within an international group? If so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The AEAT actively scrutinises cross-border and related-party transactions within multinational groups. The 2026 Tax Control Plan places particular emphasis on international taxation, large businesses, tax groups, business restructurings, transfer pricing, profit shifting, permanent establishments and arrangements involving low-tax jurisdictions. Related-party transactions must comply with the arm&#8217;s length principle and, where applicable, master file, local file and country-by-country reporting requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a controlled foreign corporation (CFC) regime or equivalent?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Article 100 of the Corporate Income Tax Law contains controlled foreign company rules. Broadly, the regime may apply where a Spanish taxpayer, alone or together with related persons or entities, holds at least 50% of the capital, equity, profits or voting rights of a non-resident entity and the foreign tax actually paid on the relevant income is less than 75% of the tax that would have been payable under Spanish Corporate Income Tax rules. Depending on the circumstances, certain categories of passive income or, in some cases, the foreign entity&#8217;s total income may be attributed to the Spanish taxpayer. Specific exceptions apply, including for qualifying entities resident in the EU or EEA where the statutory substance and economic-activity requirements are met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a transfer pricing regime?  Is there a \"thin capitalization\" regime?  Is there a \"safe harbour\" or is it possible to obtain an advance pricing agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Spain has a comprehensive transfer pricing regime based on the arm&#8217;s length principle, mainly regulated by Article 18 of the Corporate Income Tax Law and its implementing regulations. Spain no longer applies a traditional thin-capitalisation debt-to-equity rule. Instead, net financial expenses are generally deductible up to 30% of operating profit, with a minimum deductible amount of EUR 1 million per tax period, subject to additional limitations in specific cases. Taxpayers may request unilateral or bilateral Advance Pricing Agreements (APAs). Certain limited simplifications or safe-harbour-type rules exist for specific transactions, but there is no general transfer pricing safe harbour.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a general anti-avoidance rule (GAAR) and, if so, how is it enforced by tax authorities (e.g. in negotiations, litigation)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Article 15 of the General Tax Law contains the Spanish general anti-avoidance rule, known as &#8216;conflict in the application of the tax rule&#8217;. It applies where arrangements are notably artificial or inappropriate for achieving the stated result and produce no relevant legal or economic effects other than tax savings and the effects that would have arisen from ordinary or appropriate acts. Its application requires a specific administrative procedure, including a report from the advisory commission provided for in the General Tax Law. Spain also has a separate rule on simulation and numerous specific anti-abuse provisions, as well as treaty-based measures such as the Principal Purpose Test.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a digital services tax? If so, is there an intention to withdraw or amend it once a multilateral solution is in place?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Spain continues to levy the Digital Services Tax under Law 4\/2020. The tax applies at a rate of 3% to certain online advertising, online intermediation and user-data transmission services attributable to users located in Spain. Broadly, it applies to groups or entities exceeding both a global net turnover threshold of EUR 750 million and Spanish taxable digital-services revenues of EUR 3 million in the preceding year. The tax was designed as an interim measure pending an international solution. As of 2026, it remains in force and no repeal has taken effect in connection with OECD Pillar One.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has the BEPS 2.0 two-pillar approach been implemented in your jurisdiction (or plans for implementation)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Spain has implemented Pillar 2 of the OECD\/G20 BEPS 2.0 project through Law 7\/2024 and its implementing Regulation, approved by Royal Decree 252\/2025. The regime introduces a 15% jurisdictional minimum effective tax for multinational groups and large domestic groups with consolidated annual revenues of at least EUR 750 million in at least two of the previous four years, through a domestic top-up tax and the income inclusion and undertaxed profits rules in accordance with the EU Minimum Tax Directive. Pillar One has not yet resulted in a domestic replacement of Spain&#8217;s Digital Services Tax, which therefore remains applicable pending an effective multilateral solution.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has the OECD BEPS program impacted tax policies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The OECD BEPS programme has significantly shaped Spanish tax policy. Spain has strengthened transfer pricing documentation and country-by-country reporting, interest-deduction limitations, CFC rules, anti-hybrid provisions, mandatory disclosure rules and treaty anti-abuse provisions, including the Principal Purpose Test through the Multilateral Instrument. The implementation of Pillar 2 has added a separate minimum-tax compliance framework for large multinational and domestic groups, while the AEAT&#8217;s 2026 control strategy continues to prioritise international taxation and profit-shifting risks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax system broadly follow the OECD Model i.e. does it have taxation of: a) business profits, b) employment income and pensions, c) VAT (or other indirect tax), d) savings income and royalties, e) income from land, f) capital gains, g) stamp and\/or capital duties? If so, what are the current rates and how are they applied?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The Spanish tax system is broadly aligned with the OECD Model and includes taxation of:<\/p>\n<ul>\n<li>Business profits: Corporate Income Tax is generally levied at 25%. For tax periods beginning in 2026, entities with prior-year net turnover below EUR 1 million are generally taxed at 19% on the first EUR 50,000 of taxable profit and 21% on the remainder, while qualifying small and medium-sized entities under Article 101 of the Corporate Income Tax Law are generally taxed at 23%. Special rates apply to certain entities.<\/li>\n<li>Employment income and pensions: Personal Income Tax (PIT) is progressive and combines State and Autonomous Region scales, so the maximum marginal rate varies depending on the taxpayer&#8217;s region of residence.<\/li>\n<li>VAT: the standard rate is 21%, with reduced rates of 10% and 4% for qualifying supplies, subject to specific exemptions and special regimes.<\/li>\n<li>Savings income: for individuals, the savings base is generally taxed at progressive rates from 19% to 30%. Royalties may be taxed as business, employment or investment income depending on the circumstances.<\/li>\n<li>Income from land: taxed under PIT, Corporate Income Tax or Non-Resident Income Tax depending on the taxpayer and whether a permanent establishment exists.<\/li>\n<li>Capital gains: individuals generally include capital gains in the savings base, while companies include them in the Corporate Income Tax base; specific exemptions, rollovers and treaty rules may apply.<\/li>\n<li>Stamp and capital duties: Transfer Tax and Stamp Duty (ITP-AJD) are largely managed by the Autonomous Regions, so rates and reliefs vary by region.<\/li>\n<li>Spain also levies excise duties, environmental taxes, local taxes and other sector-specific charges.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is business tax levied on, broadly, the revenue profits of a business computed in accordance with accounting principles?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The Corporate Income Tax base is generally derived from accounting profit determined under Spanish accounting rules, subject to the tax adjustments required by the Corporate Income Tax Law. These adjustments include, among others, differences relating to depreciation, impairments and provisions, non-deductible expenses, financial expense limitations, exemptions, loss carry-forwards and specific valuation rules.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are common business vehicles such as companies, partnerships and trusts recognised as taxable entities or are they tax transparent?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Spanish corporations, including S.A. and S.L. companies, are separate taxpayers subject to Corporate Income Tax. Certain entities without legal personality, such as civil partnerships not carrying on a commercial activity, estates and communities of property, may fall within the income-attribution regime rather than being separate Corporate Income Tax taxpayers. Trusts are not recognised as a separate legal institution under Spanish law; their Spanish tax treatment is determined case by case according to their legal characteristics and the rights retained by the settlor, trustees and beneficiaries.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is liability to business taxation based on tax residence or registration?  If so, what are the tests?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Business taxation is primarily based on tax residence rather than mere registration. A company is resident in Spain if it was incorporated under Spanish law, has its registered office in Spain or has its place of effective management in Spain. Spanish-resident companies are generally subject to Corporate Income Tax on their worldwide income. Non-resident entities are taxed on Spanish-source income under the Non-Resident Income Tax rules, either through a permanent establishment or, where no permanent establishment exists, under the rules applicable to specific categories of Spanish-source income.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any favourable taxation regimes for particular areas (e.g. enterprise zones) or sectors (e.g. financial services)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Spain provides several favourable territorial and sector-specific regimes, including the Canary Islands Economic and Fiscal Regime, with instruments such as the Canary Islands Special Zone (ZEC) and the Canary Islands Investment Reserve; a 50% Corporate Income Tax rebate for qualifying income obtained in Ceuta and Melilla; significant R&amp;D and technological innovation tax credits; incentives for audiovisual productions and live performing arts; and the ETVE holding-company regime for qualifying foreign-source income. Specific conditions, substance requirements and State-aid limits may apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any special tax regimes for intellectual property, such as patent box?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Article 23 of the Corporate Income Tax Law provides an IP or &#8216;patent box&#8217; regime. Subject to the statutory nexus requirement and other conditions, 60% of the qualifying positive income derived from the licensing or transfer of certain qualifying intangible assets may be reduced for Corporate Income Tax purposes. Eligible assets include patents, utility models, supplementary protection certificates, registered advanced software and certain other legally protected intangibles; trademarks and other expressly excluded marketing intangibles do not qualify.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is fiscal consolidation permitted? Are groups of companies recognised for tax purposes and, if so, are there any jurisdictional limitations on what can constitute a tax group? Is there a group contribution system or can losses otherwise be relieved across group companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Spain permits Corporate Income Tax consolidation. A fiscal group is generally formed by eligible Spanish-resident entities and Spanish permanent establishments that meet the statutory ownership and voting-right requirements. The controlling interest is generally at least 75%, reduced to 70% for listed subsidiaries. A non-resident parent can act as the ultimate controlling entity for purposes of forming a Spanish &#8216;horizontal&#8217; tax group, although the non-resident parent itself is not included in the Spanish consolidated tax base. Losses generated within the group are consolidated subject to the specific rules and limitations of the tax-consolidation regime.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any withholding taxes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Spain imposes withholding and advance-payment obligations on many categories of income, including employment income, professional fees, rents, dividends, interest and certain royalties. Domestic dividends and interest are generally subject to 19% withholding. For non-residents, dividends, interest and capital gains are generally subject to a 19% rate, while other Spanish-source income may be subject to the general 24% non-resident rate, subject in each case to domestic exemptions, EU directives and applicable tax treaties. Royalties paid to non-residents depend on the applicable domestic rule, treaty and, where relevant, the EU Interest and Royalties Directive. Withholdings are reported through the relevant periodic and annual forms.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any environmental taxes payable by businesses or environmental tax credits available to businesses?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Businesses may be affected by a range of national, regional and local environmental taxes. Important examples include the Special Tax on Non-Reusable Plastic Packaging, the tax on the deposit of waste in landfills, incineration and co-incineration, energy and electricity-related taxes and charges, and various Autonomous Region environmental levies concerning emissions, water, waste or specific installations. Spain does not have a single general &#8216;environmental tax credit&#8217; for businesses. However, environmental or decarbonisation projects may benefit from specific tax incentives where the statutory conditions are met, including R&amp;D and technological innovation deductions, certain regional incentives and sector-specific investment measures. The availability of these incentives depends on the type of investment and the location and profile of the taxpayer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is dividend income received from resident and\/or non-resident companies taxable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Dividends received by Spanish-resident companies are generally included in the Corporate Income Tax base. However, Article 21 of the Corporate Income Tax Law provides a participation exemption for qualifying domestic and foreign dividends where, broadly, the recipient holds at least 5% of the distributing entity and the minimum holding-period requirement is met. The exemption is generally reduced by a deemed 5% management expense, resulting in an effective 95% exemption, subject to specific exceptions. For foreign subsidiaries, additional requirements may apply, including a minimum level of taxation or treaty-based conditions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the advantages and disadvantages offered by your jurisdiction to an international group seeking to relocate activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Advantages:<\/p>\n<ul>\n<li>Extensive tax treaty network.<\/li>\n<li>ETVE regime for holding companies.<\/li>\n<li>R&amp;D and innovation incentives.<\/li>\n<li>Skilled workforce and infrastructure.<\/li>\n<li>EU market access and legal certainty.<\/li>\n<\/ul>\n<p>Disadvantages:<\/p>\n<ul>\n<li>Complex and frequently changing tax rules.<\/li>\n<li>High administrative burden.<\/li>\n<li>Regional tax variations.<\/li>\n<\/ul>\n<p>Spain offers international groups several advantages, including an extensive tax treaty network, EU market access, a participation-exemption system, the ETVE holding-company regime, strong R&amp;D and innovation incentives, the Canary Islands special tax regime, developed infrastructure and a skilled workforce. Potential disadvantages include a relatively complex and frequently amended tax framework, significant compliance and reporting obligations, intensive scrutiny of cross-border and related-party transactions, and material differences between Autonomous Regions in certain taxes. Spain can nevertheless be an attractive location for technology, life sciences, logistics, renewable energy, audiovisual and holding activities where the structure has sufficient substance and is properly planned.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3210<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/149762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=149762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}