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Retained

  • Statutory Tax Rate 25
  • Surtax Based on Taxable Income 0
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 25

Statutory Tax Rate

The standard corporate tax rate is 25%. Effective 1 January 2023, companies with turnover less than EUR 1 million are subject to a reduced corporate tax rate of 23%.

For newly established companies, a special reduced rate of 15% applies for the first profitable year and the following year. Hydrocarbon companies and credit institutions are subject to a 30% rate.

Effective 1 January 2022, Spain has introduced a minimum corporate tax, which applies for:

  • Companies with a net turnover of at least EUR 20 million; and
  • Companies that are taxed under the tax consolidation regime, regardless of turnover.

The standard minimum tax is equal to 15% of taxable income, reduced or increased, where appropriate, by the equalization reserve for small and medium enterprises (SMEs). However, the minimum tax rate is 10% for newly created entities (whose standard corporate tax rate is 15% for 2 years) and 18% for hydrocarbon companies and credit institutions (whose standard corporate tax rate is 30%).

The minimum tax does not apply to certain taxpayers, including taxpayers subject to special tax rates.