Taxes and business consulting

Taxation and taxes for companies in Spain

Our online tax advisor will help you with any doubts about tax obligations and accounting obligations for any company.

Taxation and corporation tax

Among the tax obligations of companies include:

In general, before starting an economic activity, you must submit the census declaration, model 036. The model 840 of Business Tax (IAE) will only be submitted by those who are not exempt from tax and before the month elapses from the start of the activity. Once the activity has been launched, mercantile companies are taxed corporate taxes, (IS – payments on account and annual statement). In addition, they must meet the obligations relating to value added tax (VAT), informative statements (transactions with third parties - model 347, annual deductions and income account -model 190, etc.) and formal obligations within, depending on the activities carried out.

Among the extra tax obligations of companies include:

The Keeping of accounting, VAT Registration Books, characteristics to issue invoices as required by Regulation Billing, obtaining the NIF of company, the registration of census (model 036).

In more detail the tax obligations among other companies are:


The IS are taxed upon the income of companies and other legal resident entities throughout the Spanish territory. They must submit the IS statement even though they have not been active during the tax period or have not earned income subject to tax.

The legal persons are IS taxpayers (except civil societies that have no commercial purpose) and certain entities, although they have no legal personality.

The tax period of the IS coincides with the financial year of each entity and may not exceed 12 months. The closing date of financial or corporate year is determined in the statutes of societies. Failing this, it ends on December 31st of each year.

The rate of taxation and total quota:

The tax rate is the percentage multiplied by the BI which permits the full amount. The result may be positive (when the BI is) or zero (BI zero or negative)

The general rate assessment for tax periods beginning in 2015 is 28% and 25% in 2016. The IS statement must be submitted within 25 calendar days to 6 months after the end of the tax period. Thus, in general, for taxpayers whose tax year coincides with the calendar year, the deadline is the first 25 calendar days of July. Taxable persons whose tax period coincides with the calendar year and presented by Internet the IS statement may debit payment (From 1st to 20th July).

Payments are made of such tax between 1st and 20th April, October and December.


The supplies of goods and services in the territory of application of the tax by entrepreneurs or professionals for consideration in the development of their economic activities are subject to VAT. They are liable to the same as individuals, legal persons and entities without legal personality.

There are some activities exempted from VAT, some of them are:
Education in public or private schools; private tuition for individuals on material included in the curricular of the educational system. Child care services provided in the educational centre during interactive time.

Assistance to individuals by medical professionals and health services.

Tax Regimes

There is a general regime and the special schemes include:

Simplified: Businesses in the service sector, industrial and wholesale and retail merchants who can pay taxes in this scheme.

Surcharge of equivalence for retailers who qualify

Agriculture, livestock and fishing for farmers except resignation or exclusion.

The most common is the general scheme for those who make supplies of goods or services, in these cases it will affect the rate of VAT corresponding to the amount of the transaction, unless it is exempt or not liable. VAT rates are: General 21% - 10% Reduced: y - The super-reduced 4%: the latter especially applies to staple foods, medicines applied for human use, etc.

Models of self-assessments:

The model 303 is used whether the settlement period is quarterly or monthly. However, if you have opted for the special regime for groups of entities the settlement period will be monthly and the model 322 will be presented and, where appropriate the model 353.

The model 368 “Periodic settlement declaration of the special arrangements applicable to telecommunications services, broadcasting or television and electronic VAT” will be presented on a quarterly basis and will apply for the first time for settlement periods beginning on or after 1st January 2015 (prior presentation of form 034 registered in the special register). If the settlement period is quarterly, the submission of model 303 and, if applicable, income or compensation request is made between the 1st and 20th of April, July and October, except for the last settlement period of the year, where you can also request a reimbursement, between 1st and 30th January of the following year. For direct debit payments, the submission is made by Internet between 1st and 15th April, July and October and between 1st and 25th January. The model 368 is presented between the 1st and 20th of April, July, October and January regardless of the declaration period have supplied digital services or not.

Below are actual sample queries, about taxation and corporation taxes in Spain

1.- Last Tuesday I did the application electronically as an intra-community trader for XXXXXXX, LTD, filling out the 036 “Form”. It still doesn’t consist that we have been activated in How long does it take?

From January 1, 2010 must be included in the ROI (and obtain the NOI), prior to the completion of the transaction, all persons or entities who are to perform:- Deliveries or acquisitions of intra-community goods. – Intra-community supply of services made or received (new). In parallel, the necessary proof that the supplier or the community customer is also activated in the ROI of their country, it extends to the supply of services of community suppliers or customers. Administration has a maximum term of 6 months to grant or revoke, although it usually takes an average of 3,8 months (Data updated in 2010).

2.- Is it possible to modify the tax office to a location that the company has no contractual link? Would there be a problem with that?. We understand that, otherwise, we could create a co-working or business centre model contract.

The General Tax Law defines the legal address generically as:

The place of location of the taxpayer in its relations with the Tax Administration. And set the specific rules that define a distinction to that end between the homes of individuals, legal persons, entities without legal personality and individuals or non-residential entities.

Regulations Article 48.1 and 2. Law 58/2003 of December 17, 2003, General Taxation.

In the case of a trading company 2. The tax residence of taxpayers resident in Spanish territory will be the registered office, provided they match the place where administrative management direction of their business is effectively centralized. Otherwise, the place where such management or direction is performed will be considered. In cases where the fiscal residence can not be established for tax purposes, according to the above criteria will prevail that in which the highest value of fixed assets. For there not to be a problem, it is essential that, whether it is co-working or a business centre, the is REALLY activity taking place there.

3.- What are the requirements for a fixed asset to be accounted for and not as an expense? What articles and law regulate these explanatory arguments? What are the taxation consequences of accounting a fixed asset as an expense?

Royal Decree 1514/2007, 16th November, that which approves the General Accounting Plan. Expenses: decreases in the equity of the company during the year, in the form of outflows or decreases in the value of assets, or the recognition or increase in value of the liabilities, provided they do not originate in distributions, monetary or not, partners or owners, in their capacity as such. The income and expenditure for the year are recognized in the profits and losses account and will become part of the total, except where appropriate proceed directly to the equity, in which case they will be presented in the statement of changes in equity, in accordance with that provided in the second part of this General Accounting Plan or a rule that develops. Tangible fixed assets: assets that are valued at cost, be it the acquisition price or the production cost. The indirect taxes levied on tangible assets will only be included in the acquisition price or production cost when they are not recoverable directly from the Treasury. In turn they are susceptible to be written off, as an expense in deterioration depending on its useful life. Some expenses decrease corporation tax directly, and the tangible fixed assets are an active part of the society not affecting the corporation tax, as a general rule, rather than the writing off of the.

4.- What type of VAT does sour wine support?

El 18% for taking food into consideration.

5.- Recently we formed a Ltd. for the creation of an aesthetic centre in Navarra, we are 3 partners each with a 33% ownership, and the partners are my wife, my mother and I.
The doubt is that in the consultation we were told that if none of the partners work in Ltd and there isn’t a worker in charge of the business (there are 3 workers), at least one of the 3 partners must pay social security (although none of the 3 partners are employees nor obtain any compensation in this Ltd.).
In this case we have listed my mother (a housewife) as self-employed.
My wife and I are employees in another company.
Our question is concerning the compulsory contributions to the social security of the partners and in particular to our case, to know if we are doing things correctly, if we could avoid the registry contribution of my mother as self-employed to avoid this monthly expense, and if we named a worker in charge could we avoid it?
Or should my wife and I should also register as self-employed?
Would it be possible to annul this compulsory contribution of having to register partners without them being workers or unpaid if we amend the company’s legal form to a civil society instead of a Ltd?

Members of a civil society (not subject to the Commercial code but as to civil standards) should be integrated within the Special Scheme for the Self Employed. It is in companies in which the partners must pool money, property or industry, with the intention of distributing each others gain (as well as losses). In which case if a provision of services is provided without being to subject to that partner’s employment contract for development is provided, and the provision happens regularly, personally and directly, the same should be integrated into the RETA.

It is important to note that for these partners to stay integrated in this special regime it is necessary that they carry out a provision of services as a social contribution of their work and industry, i.e., without subject to an employment contract but as a partner as well as this work taking place regularly, personally and directly.

In the case that these partners who only provide goods to society, limiting its liability to the same property, without performing any work in the society and without carrying out any managerial or administrative activity, some may not be included any Social Security scheme for this reason as it is not done by them nor the professional activity or the employment.