background image
8.1.1. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty 1% A 1% capital duty applies on the reduction of capital and upon liquidation, but does not apply to initial contributions and increases to capital.
Payroll Tax N/A There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees.
Social Security Employer Contribution 29.90% Employer contributions are equal to 29.9% of the employee's gross income from employment, with the amount increased by 1.2% if employment is part-time.
Social Security Employee Contribution 6.35% Employee contributions are equal to 6.35% of gross employment income, with an amount increased by 0.05% if employment is part-time. A maximum and minimum monthly basis applies depending on the category of work. The contributions are withheld and remitted by the employer.
Property Tax 0.3% to 3% Real estate tax is levied annually on the cadastral value of real estate at the municipal level. Non-resident entities located in a non-cooperative jurisdiction that own or hold real property in Spain are subject to a special 3% tax if the property is not used in a business activity other than leasing, among other conditions. See Sec. 13.5. for a list of non-cooperative jurisdictions.
Transfer Tax 5% to 10% Transfer tax applies on the transfer of real estate and leases on real estate that are VAT exempt. The general rate is 6%, although rates vary by region. Shares are generally exempt, but transfer tax may apply if a share transfer is part of an avoidance arrangement where the acquirer directly or indirectly holds more than a 50% stake in the acquired company and more than 50% of the acquired company's assets consist of real estate situated in Spain. Transfer tax is not recoverable and paid by the buyer or lessee.
Stamp Duty 0.5% to 3% Stamp duty is levied on notarial instruments and records documenting transactions that must be registered. The rates vary by region.
Excise Taxes Varies Excise taxes are levied on alcoholic beverages, tobacco products, and hydrocarbon oil products produced in or imported into Spain.
Customs Duty Varies Customs duty applies for goods imported from outside the European Union.
Business Activity Tax Varies A business activities tax is levied at the local level at varying rates depending on the activity type, number of employees, size of the business premises and other factors. Businesses with an annual turnover of less than EUR 1 million are exempt, and all businesses are exempt for the first two years of operation.
Insurance Premium Tax 8% An 8% tax (increased from 6% effective 1 January 2021) is levied on insurance premiums or charges payable by the insured. Additional insurance levies and charges apply on a regional basis.
Financial Transactions Tax 0.20% Effective 16 January 2021, a financial transactions tax applies at a rate of 0.2% to transactions relating to equity shares listed on a Spanish or EU (or an equivalent third country) stock market, with a market capitalization exceeding EUR 1 billion as of 1 December of the previous year.