Corporation tax in Spain
Corporation tax is an important factor to consider when you have a company in Spain, and in terms of being able to plan your taxes. Whether you are a resident or a non-resident if you form part of a company in Spain, you will have to pay personal and company taxes. Personal taxes will be done annually and the company’s tax reports will be submitted every quarter, and then annually to the Commercial Registry (Mercantil).
The company apart from the name will be associated and identified with its tax code, or CIF in Spain. Every company in Spain must have a tax code and be registered with the tax authorities. The tax code allocated to the company is what is needed to issue all company invoicing and corresponding taxes. The companies CIF is also required to open a corporate bank account, import goods to Spain, acquire shares, and buy property. The CIF will have nothing to do with whether you are you have a fiscal present in Spain or not, because you as a person are able to a solely fiscal presence in Spain for financial purposes.
Corporate tax does differ from country to country, and Spain is no exception. In Spain the tax obligations, can depend of the size of the company and revenue generated. If a company generates under the threshold of the current 10 million Euros yearly, then they are eligible to apply for incentives, which include tax credits. The general corporate tax is a national Spanish tax and as a company in Spain, you will also Corporate taxes are also apparent when buying and selling properties in Spain. Therefore should be taken seriously in to consideration along with stamp duty.
It is essential to be informed in order to plan your finances correctly, when forming part of a company there are tax and accounting obligations that will have to be fulfilled.
ABAD law and accounting firm have at your disposal a fully qualified professional experienced team that will be able to take your taxes worries off your hands and ensure that you don’t end up paying more than you need to, in any circumstance.