What is included:
Cost: on request.
National Currency: Euro (EUR).
When doing business in Spain, most often, you will deal with public limited liability companies (SA), limited liability companies (SL) and representative offices of foreign companies.
According to the law, a company that is legally registered in the country, has a legal address or its current management within the country, will be a resident of Spain.
The country has legislative regulation that relates to the economic presence in the country. Unlike the UAE, there are no clear legislative requirements, but rather a tax authorities review in each particular case.
Local companies pay corporate income tax both on domestic and abroad income. Foreign companies pay taxes only on income earned in Spain. In accordance with the provisions of tax agreements, branches are usually taxed similarly to subsidiaries.
For tax purposes, Spanish law does not distinguish between ordinary business income and any other types of income. Taxable income is disclosed in the financial statements of the company.
Naturally, there are expense items that are excluded from this amount, but it should be noted that certain types of expenses are not deductible. Whilst, in other EU countries they are deductible.
Among these are certain operational expenses, employee benefits, penalties that are assigned to the company and others.
The basic corporate income tax rate is 25%. There are also other rates, depending on the type of company ‘s activity (for example, a rate of 30% applies to banks).
VAT is levied on the sale of goods and the provision of services performed by entrepreneurs / specialists in Spain (that is, in Spain, with the exception of the Canary Islands and the autonomous cities of Ceuta and Melilla).
VAT is also imposed on the acquisition and import of goods within the EU.
The standard rate is 21%, with reduced rates of 10% and 4%. Some transactions are released from VAT.
All entities operating in the territory of the Spanish VAT are required to register the status of VAT payer.
A local company is obliged to include in the taxable income the income from CFCs in countries with low tax rates if the controlled enterprises do not have tangible assets and employees.
Also, income from industrial and intellectual property (and not only) is subject to taxes, since it is treated as passive income regardless of the availability of employees and property.