Spain – Turkey

Establishing a business in Spain

Limited Liability Company- Sociedad Limitada S.L.

 

Joint Stock Company – Sociedad Anónima S.A.


Branch Office

Taxation in Spain

Corporate tax in Spain

The general rate of corporate tax in Spain was reduced in 2015 to 28 percent and to 25 percent for 2016 and 2017. Newly formed companies pay 15 percent for the first two years of business. A reduction of 10 percent tax may be granted to profits locked into a special reserve for five years. Company tax returns must be filed within six months and 25 days after the end of the accounting period. Payment is by instalments in April, October and December, each instalment usually being 18 percent of the tax liability.

VAT (IVA) in Spain

There are three levels of VAT (value-added tax) or Impuesto sobre el Valor Añadido (IVA) in Spain:

  • IVA general – 21 percent on goods and services.
  • IVA reducido – 10 percent on passenger transport, toll roads, amateur sporting events, exhibitions, health products, non-basic foods, rubbish collection, pest control and wastewater treatment.
  • IVA superreducido – 4 percent on essential foods, medicine, books and newspapers.

As of July 1, 2017, the Spanish tax authority will implement a new VAT policy which will require all VAT payers (chiefly freelancers) to submit all invoice data online via the official Agencia Tributaria within four days of the date of issuance, and no later than the 16th day of the month following its issuance. In 2017 VAT payers will be granted an eight-day period instead of four.

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