Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
You set up a company in Spain — or you are about to — and now there is a stack of obligations nobody explained: corporate tax, VAT, social security, quarterly filings. Most international entrepreneurs arrive not knowing what they owe, when, or to whom, and the cost of guessing wrong runs both ways: overpay because you missed a deduction, or underpay and face a surcharge.
This page explains the taxes that apply to a Spanish business in plain English. The headline corporate-tax rate is 25%, but newly-created companies pay 15% for their first two profitable years, and smaller companies pay less — which rate is yours depends on your turnover and how long you have been trading. VAT is charged at 21% (with reduced 10% and 4% bands), and if you operate as an autónomo rather than through a company, you pay a monthly social-security contribution set on a sliding scale by your net earnings.
Our approach combines legal clarity, efficient processes and close coordination with each client’s accounting and international structure.
We operate nationwide, ensuring consistent compliance wherever your business is based.
Last updated: March 2026
Quick Answer — Company Tax in Spain
The standard corporate tax rate (Impuesto de Sociedades) in Spain is 25%. New companies pay 15% for their first two profitable years. Small businesses (turnover under €1M) pay an effective rate of 23%. Spain also levies VAT (IVA) at 21%, and companies must file quarterly tax returns.
Our Corporate Tax Services
Corporate tax compliance (Impuesto sobre Sociedades)
Preparation and filing of annual corporate tax returns (Model 200), including all supporting documentation and coordination with group reporting requirements.
Tax planning and structuring
Strategic advice to optimise your company’s position under Spanish and EU tax rules, taking into account cross-border transactions, permanent establishment status and applicable double tax treaties.
Startup and new entity regimes
Advising on eligibility for Spain’s 15% corporate tax rate for new entities and the Startup Law regime, including planning for founders and investors.
Ongoing advisory and updates
Continuous monitoring of tax law changes (e.g. EU Pillar Two rules, digital tax initiatives, or local incentives) and proactive guidance to maintain compliance and efficiency.
VAT and indirect tax management
Registration, filings, intra-community operations and reconciliation of VAT (IVA) for both domestic and international transactions.
Withholding and dividend distributions
Calculation and filing of withholding obligations on dividends, interest and royalties, applying EU directives and treaty reductions when available.
Key Corporate Tax Rates and Rules (2026 Snapshot)
- Standard corporate income tax rate: 25%
- New companies / startups: 15% for the first two profitable years
- SMEs: 24% (under Spanish criteria)
- Pillar Two global minimum tax: 15%, applicable to large multinational groups
- Canary Islands ZEC: 4% (for qualifying activities within ZEC)
- VAT: 21% general rate, 10% and 4% reduced rates
- Withholding tax: Generally 19%, subject to treaty relief
- Corporate return (Model 200): Due within 25 days after six months from year-end
- Advance payments (Model 202): April, October and December
We ensure your company’s reporting and tax obligations are fully aligned with Spanish requirements and your group’s global compliance framework.
Based in the South, Operating Nationwide
While we act for companies throughout Spain, much of our work is concentrated in Málaga, Seville and Cádiz, where many international businesses are now establishing their headquarters or subsidiaries.
Our team works closely with local notaries, tax offices and banks to streamline every stage of your company’s tax management and compliance.
Need help with your corporate taxes in Spain?
Contact us for a short consultation or send us your first two questions — we’ll get back to you within three days.
Frequently Asked Questions About Company Taxes in Spain
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Email your questions to marialuisa@costaluzlawyers.es and our team gives you a free, personalised written analysis — you can attach any documents or forms. Once everything is clear in writing, we offer an optional free introductory call. The initial written analysis carries no fee (international tax consultancy starts from €200 + VAT).
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What is the corporate tax rate in Spain for 2026?
The standard rate is 25%. New companies benefit from a reduced 15% rate for the first two profitable years. Micro-enterprises (turnover under €1M) pay 23%. Large companies may face a minimum effective rate of 15%.
What taxes does a Spanish SL company pay?
A Spanish SL (Sociedad Limitada) pays: corporate income tax (Impuesto de Sociedades), VAT (IVA at 21%), employer social security contributions, and withholding taxes on dividends. Quarterly filings (Modelos 202, 303) and annual accounts are required.
Can a non-resident own a company in Spain?
Yes. Non-residents can be shareholders, directors, and even sole owners of a Spanish SL. However, a non-resident director without EU residency needs a NIE and may need a work permit depending on their role and activities.
What deductions can a Spanish company claim?
Common deductions include: R&D expenses (25%–42% tax credit), reinvested profits, amortisation of assets, employee training costs, and donations to qualifying charities. Transfer pricing rules apply to related-party transactions.
How do I set up a company in Spain as a foreigner?
Steps: 1) Obtain a NIE, 2) Reserve company name at the Registro Mercantil, 3) Open a bank account and deposit minimum capital (€3,000 for SL), 4) Sign articles of incorporation before a notary, 5) Register with the tax office (Hacienda) and Social Security.
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Related Tax Guides
Corporate Tax Rates in Spain — 2026 Overview
Spain’s corporate tax (Impuesto de Sociedades) applies to all companies registered in Spain. The key rates for the 2026 fiscal year are:
| Company Type | Tax Rate | Notes |
|---|---|---|
| Standard companies (SL, SA) | 25% | General rate for most businesses |
| New companies (first 2 profitable years) | 15% | Applies to first tax period with positive taxable base, and the following one |
| SMEs (turnover under €1M) | 23% | Reduced rate for small businesses |
| Cooperatives | 20% | Fiscally protected cooperatives |
| Foundations / non-profits | 10% | Under Ley 49/2002 |
Quarterly and Annual Tax Filing Obligations
Spanish companies must comply with a strict filing calendar:
- Modelo 202 — Quarterly advance payment of corporate tax (April, October, December)
- Modelo 200 — Annual corporate tax return (filed within 25 days of the 6th month after fiscal year end — typically July for calendar-year companies)
- Modelo 303 — Quarterly VAT return (IVA), filed within 20 days after each quarter
- Modelo 390 — Annual VAT summary (January)
- Modelo 347 — Annual declaration of operations exceeding €3,005.06 with any single client/supplier
- Modelo 111 — Quarterly withholding tax return for employee salaries and professional fees
Tax Deductions and Incentives Available to Spanish Companies
Spain offers several tax incentives that can significantly reduce your effective corporate tax rate:
- R&D deduction: 25% deduction on qualifying research and development expenses (42% for amounts exceeding the average of the prior two years)
- Technological innovation: 12% deduction on qualifying innovation costs
- Job creation for disabled workers: €9,000 per person with disability degree 33-64%; €12,000 for degree 65%+
- International double taxation relief: Credit for foreign taxes paid on income also taxed in Spain
- Patent box: 60% exemption on income derived from qualifying intellectual property
- Reinvestment of extraordinary profits: Exemption available under certain conditions
For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Related guide: our Spanish tax lawyer service for expats.
Book a call about your Spanish business taxes. We will confirm which corporate-tax rate applies to your company, what VAT and social-security obligations you have, and the deductions you may be missing. No obligation.
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Need to speak now? +34 919 499 342 (EN/ES, 24h). Office: +34 956 092 687. Costaluz Lawyers — María Luisa de Castro, ICA Cádiz nº 2745.
Related Spanish tax guides
- Earning rental income alongside business income? See the rental tax guide: Your guide to taxes on rental properties in Spain.
- Non-resident company owners often file Modelo 210 — see the guide: Impuesto sobre la Renta de No Residentes en España — Guía Completa 2026.