Corporate tax in Spain trips up foreign companies because the rate you pay depends on your size, age, and structure, not one headline number. This guide gives the verified 2026 rates, the reduced rates for smaller companies and startups, the minimum tax rules, and how to file. Every figure is sourced to the Agencia Tributaria or the BOE (Boletín Oficial del Estado, Spain’s official state gazette).
What Is the Corporate Tax Rate in Spain?
Spain applies a flat 25% general corporate income tax (CIT) to resident companies on worldwide income and to non-resident companies with a permanent establishment, under Article 29 of Law 27/2014 (LIS). The system is not progressive. Reduced and special rates apply by company category, as the table below shows.
| Entity type | Corporate tax rate | Source |
|---|---|---|
| General rate | 25% | Law 27/2014 (LIS), Art. 29 |
| Micro-enterprise (turnover < €1M) | 21% / 22% in 2025, stepping to 17% / 20% | Agencia Tributaria |
| Article 101 SME (turnover < €10M) | 24% in 2025, falling to 20% by 2029 | Agencia Tributaria |
| Newly created entities (ENC) | 15% for first two profitable periods | Agencia Tributaria |
| Certified startups (Law 28/2022) | 15% for up to four periods | Law 28/2022 |
| Fiscally protected cooperatives | 20% | Law 27/2014 (LIS), Art. 29 |
| Credit institutions | 30% | Law 27/2014 (LIS), Art. 29 |
| Canary Islands Special Zone (ZEC) | 4% | PwC Worldwide Tax Summaries |
| SICAVs | 1% | PwC Worldwide Tax Summaries |
| Pension funds | 0% | PwC Worldwide Tax Summaries |
The general 25% rate replaced the old 30% rate and is the figure most companies actually pay.
How Do Spain’s Corporate Tax Rates Change From 2025 to 2026?
The 2025-2029 reform phases down reduced rates for smaller companies. The general 25% rate does not change across 2025, 2026, 2027 or 2028, per the Agencia Tributaria. Only micro-enterprises (turnover under €1 million) and Article 101 SMEs (turnover under €10 million) see cuts, on two separate schedules added by Law 7/2024.
| Company type | 2025 | 2026 | 2027 | 2028 | 2029+ | Source |
|---|---|---|---|---|---|---|
| General rate | 25% | 25% | 25% | 25% | 25% | Agencia Tributaria |
| Micro-enterprise (first €50,000 / remainder) | 21% / 22% | 19% / 21% | 17% / 20% | 17% / 20% | 17% / 20% | Agencia Tributaria |
| Article 101 SME (turnover < €10M) | 24% | 23% | 22% | 21% | 20% | Agencia Tributaria |
Micro-enterprises use a two-bracket split scale. Article 101 SMEs use a single flat rate that glides down one point a year.
What Is the 15% Tax Rate for New Companies and Startups in Spain?
Two distinct 15% regimes exist. Newly created entities (ENC) that carry on a genuine economic activity pay 15% for the first two tax periods with a positive base, under Transitional Provision 22 of the LIS. Certified startups under Law 28/2022 pay 15% for the first profitable period plus three more, and must hold ENISA (Entidad Nacional de Innovación) certification.
A company qualifies as an “empresa emergente” (startup) under Law 28/2022 when it meets all of these tests:
- Incorporated or registered within the last 5 years (7 years for biotech, energy, industrial and strategic sectors)
- Registered office or permanent establishment in Spain
- Majority of the workforce on Spanish employment contracts
- Innovative and scalable business model
- Not created from a merger, spin-off or transformation
- Not listed, and pays no dividends
- Turnover below €10 million
- Certified as innovative and scalable by ENISA
Startup status also unlocks tax deferral for the first two profitable periods without guarantees, plus favorable stock-option treatment.
Does Spain Have a 15% Minimum Corporate Tax?
Yes. Spain’s domestic minimum tax (tributación mínima), in force since 2022 under Article 30 bis LIS, requires companies with net turnover of €20 million or more, and every tax-consolidation group regardless of turnover, to pay a net liability of at least 15% of the adjusted taxable base, per the Agencia Tributaria. The floor is 10% for newly created entities and 18% for credit institutions.
This minimum floors how far deductions and credits can cut the final bill. It is a domestic anti-abuse rule and is separate from Pillar Two, covered next.
How Does the Pillar Two Top-Up Tax Work in Spain?
Spain transposed the EU Minimum Tax Directive through Law 7/2024, creating a Complementary Tax that tops the effective rate up to 15% for multinational and large domestic groups with consolidated revenue of €750 million or more in at least two of the four prior fiscal years. It applies to fiscal years beginning after 31 December 2023, per the BOE.
The Spanish ultimate parent files the top-up under the Income Inclusion Rule (IIR). Spanish members of foreign-parented groups file locally, with the Undertaxed Profits Rule (UTPR) as backstop from 2025, and Spain enacted a qualified domestic minimum top-up tax (QDMTT). The domestic tributación mínima applies to the CIT base, while Pillar Two tops up the effective rate on GloBE (Global Anti-Base Erosion) income, so both can apply to one in-scope group.
When Is a Foreign Company Tax Resident in Spain?
A company is Spanish tax resident if it is incorporated under Spanish law, has its registered office in Spain, or has its place of effective management in Spain. Residents pay 25% CIT on worldwide income. Non-residents without a permanent establishment pay tax only on Spanish-source income under the Non-Resident Income Tax (IRNR, Impuesto sobre la Renta de No Residentes).
Spanish-source income for non-PE companies includes real estate income, Spanish-source royalties and service fees, and capital gains on Spanish assets, taxed under the IRNR rather than the CIT. Before you owe CIT you need an entity, and Commenda’s Spain business setup guide covers the structures.
What Counts as a Permanent Establishment in Spain?
A permanent establishment (PE) is a fixed place of business or a dependent agent through which a non-resident carries on activity in Spain. PE profits are taxed at the standard 25% rate on income attributable to the PE, under the IRNR. A PE can claim the same deductions and credits as a resident company, including the R&D credit and patent box, subject to LIS conditions.
Profits are attributed under OECD separate-entity principles. A branch profits tax of 19% can apply to remittances to non-EU, non-treaty head offices. Double tax agreement (DTA) definitions can narrow the domestic PE test. Compare a branch against a subsidiary in Commenda’s Spain subsidiary guide.
How Do Loss Carryforwards and Interest Deduction Limits Work in Spain?
Tax losses carry forward indefinitely in Spain under Article 26 of the LIS. Annual offset is capped as a percentage of the taxable base for larger companies, with a €1 million minimum offset always allowed. Net financial expenses are deductible up to 30% of operating profit, an EBITDA-based earnings-stripping rule from the EU ATAD (Anti-Tax Avoidance Directive), with a €1 million safe harbour.
| Prior-year net turnover | Annual loss-offset cap | Source |
|---|---|---|
| Under €20 million | 70% of taxable base | LIS Art. 26 |
| €20 million to €60 million | 50% of taxable base | LIS Art. 26 |
| €60 million or more | 25% of taxable base | LIS Art. 26 |
| Any company | at least €1 million allowed | LIS Art. 26 |
The 15% domestic minimum is computed after the permitted loss offset.
Does Spain Have a Participation Exemption for Dividends and Capital Gains?
Yes. Dividends and capital gains from qualifying shareholdings are 95% exempt under Article 21 of the LIS, leaving an effective 1.25% tax at the 25% rate. The parent must hold at least 5% for an uninterrupted year, and a foreign subsidiary must be subject to a comparable tax of at least 10%.
The exemption carries anti-abuse conditions and shapes how holding structures treat inbound dividends. Royalties and intercompany charges are deductible at arm’s length, which ties into the transfer pricing rules below.
Can Companies File as a Consolidated Tax Group in Spain?
Yes. Spain’s tax-consolidation regime lets a parent with at least 75% ownership (70% for listed subsidiaries) and majority voting rights file a single consolidated CIT return on Form 220, offsetting profits and losses across the group and eliminating intragroup transactions, under LIS Articles 55 to 75.
The election has a trade-off: consolidated groups fall under the 15% domestic minimum tax regardless of turnover. Standalone filing can be preferable when a group has no losses to pool and wants to avoid the minimum.
What Are Spain’s Transfer Pricing and Country-by-Country Reporting Rules?
Related-party transactions must be at arm’s length and documented. Spain requires master file and local file documentation, the Form 232 related-party information return, and country-by-country reporting (CbCR) on Form 231 for groups with consolidated revenue of €750 million or more, following BEPS (Base Erosion and Profit Shifting) Action 13. Smaller groups use a simplified documentation regime.
| Requirement | Applies to | Source |
|---|---|---|
| Master file and local file | Groups above documentation thresholds (simplified below) | RD 634/2015 (CIT Regulation) |
| Form 232 related-party return | Companies with reportable related-party transactions | Agencia Tributaria |
| CbCR (Form 231) | Groups with consolidated revenue ≥ €750M | BEPS Action 13 |
CbCR data also feeds the Pillar Two transitional safe harbours.
How Do You File a Corporate Tax Return in Spain?
File Form 200 with the Agencia Tributaria within 25 days after the six months following your fiscal year-end. For calendar-year companies that means 1 to 25 July of the following year. Filing is online only, through the Agencia Tributaria e-office, using a digital certificate or Cl@ve. Tax-consolidation groups file Form 220 instead.
You submit financial statements and supporting evidence for deductions. Payment options include direct debit, bank transfer, and card. Late voluntary filing carries a surcharge of 1% plus 1% for each full month of delay within the first year, rising to 15% plus interest after 12 months, under the General Tax Law (Ley 58/2003).
What Are Spain’s Corporate Tax Payment and Instalment Deadlines?
Advance payments on Form 202 are due by 20 April, 20 October, and 20 December. The default instalment is 18% of the prior year’s tax liability. Companies with prior-year turnover above €6,010,121.04 must instead use the running-year taxable-base method. The final balance settles with the annual Form 200.
| Item | Deadline / detail | Source |
|---|---|---|
| Form 200 annual return | 6 months + 25 days after year-end (25 July for calendar year) | Agencia Tributaria |
| Form 202 instalment 1 | 20 April | Agencia Tributaria |
| Form 202 instalment 2 | 20 October | Agencia Tributaria |
| Form 202 instalment 3 | 20 December | Agencia Tributaria |
| Default instalment method | 18% of prior-year tax liability | Agencia Tributaria |
| Turnover > €6,010,121.04 | running-year taxable-base method | Agencia Tributaria |
What Withholding Taxes Apply to Payments From Spain?
Spain withholds 19% on dividends and interest and 24% on royalties and service fees paid to non-residents, before treaty relief. Many payments to EU/EEA residents drop to 19%. Spain’s 90-plus double tax treaties and the EU Parent-Subsidiary and Interest-Royalties Directives can cut these rates to zero.
| Payment type | Domestic rate | EU/EEA residents | Treaty note | Source |
|---|---|---|---|---|
| Dividends | 19% | 0% possible (Parent-Subsidiary Directive) | reduced or nil under treaty | Agencia Tributaria (IRNR) |
| Interest | 19% | 0% for EU residents | reduced or nil under treaty | Agencia Tributaria (IRNR) |
| Royalties | 24% | 19% (0% under Interest-Royalties Directive) | reduced under treaty | Agencia Tributaria (IRNR) |
| Service fees | 24% | 19% | reduced under treaty | Agencia Tributaria (IRNR) |
Treaties relieve double taxation by the credit method (foreign tax offsets the Spanish bill) or the exemption method (foreign income is excluded), with a mutual agreement procedure (MAP) to settle disputes.
What Corporate Tax Deductions and Credits Are Available in Spain?
Spain offers an R&D credit of 25% of eligible expenses, rising to 42% on spend above the prior two-year average, plus a 12% technological innovation credit. A patent box exempts 60% of qualifying IP income. The Canary Islands Special Zone (ZEC) grants a 4% rate, and hiring a worker with a 65%-plus disability earns up to €12,000.
| Incentive | Benefit | Source |
|---|---|---|
| R&D credit | 25% of eligible expenses (42% above prior 2-year average) | Law 27/2014 (LIS) |
| Technological innovation credit | 12% of eligible expenses | Law 27/2014 (LIS) |
| Patent box | 60% exemption on qualifying IP income | Law 27/2014 (LIS) |
| Canary Islands Special Zone (ZEC) | 4% corporate tax rate | PwC Worldwide Tax Summaries |
| Hiring workers with 65%+ disability | up to €12,000 per worker | Law 27/2014 (LIS) |
| Film and audiovisual production | 30% on first €1 million of spend | Law 27/2014 (LIS) |
Deductions cannot push an in-scope company below the 15% domestic minimum.
How Commenda Helps With Corporate Tax in Spain
Commenda’s corporate tax and bookkeeping software handles corporate tax in Spain end to end. It registers your Spanish tax identification number (NIF), prepares and files Form 200 and the Form 202 instalments, tracks every deadline, and flags rate changes like the 2025-2029 reform so nothing slips. It connects to 100-plus ERPs, APIs, and custom integrations, so your filings pull straight from your books.
Keep deadlines visible with Commenda’s compliance calendar, confirm counterparties with global tax ID verification, and find implementation help in Commenda’s guide to corporate compliance providers in Spain. Book a demo to get a free assessment of your Spanish filing obligations and which reduced rate your company qualifies for.
