Tax & Compliance in Spain
Quick answer
A Spanish SL pays corporate income tax (Impuesto sobre Sociedades), charges IVA (VAT), and runs payroll with social-security contributions, filing periodic VAT and, for larger taxpayers, near-real-time SII records. Mandatory B2B e-invoicing under the Crea y Crece law is phasing in. This is informational only and is not tax, legal, or accounting advice.
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Corporate tax 25% · VAT 21% · Dividend 19% · Compliance complexity elevated
Spain tax snapshot
- Corporate tax
- 25%
- Standard VAT
- 21%
- Dividend tax
- 19%
Compliance complexity
Derived from Spain's compliance-difficulty rating of 3/5.
Corporate tax vs compliance burden
Compliance flow
Corporate tax overview
Corporate income tax (IS) applies to company profits, with a reduced rate available to qualifying newly created companies for an initial period. See the country profile for the headline rate.
VAT overview
IVA (VAT) applies to most supplies and is filed periodically; large taxpayers report through the Immediate Supply of Information (SII) system.
Payroll obligations
Employers withhold income tax (IRPF) and remit social-security contributions monthly alongside payroll reporting.
Dividend taxation
Dividends are subject to withholding, with treatment depending on the shareholder's residency and any EU or treaty relief.
Accounting requirements
Companies keep accounting records under Spanish standards, legalise official books, and file annual accounts with the Mercantile Registry.
Filing requirements
An annual IS corporate return, periodic IVA returns (with SII for larger taxpayers), and ongoing payroll and social-security declarations.
E-invoicing status
Spain is introducing mandatory B2B e-invoicing under the Crea y Crece law, phased by company size and pending implementing regulation, alongside the existing FACe channel for public-sector invoices.
Non-resident considerations
Non-resident owners can hold an SL, but SII obligations for larger taxpayers, social-security rules, and the e-invoicing rollout make local accounting support common.
Compliance complexity
Overall compliance complexity for Spain reads as elevated, based on the country's formation, accounting, payroll, and compliance difficulty ratings.
- Accounting: Companies keep accounting records under Spanish standards, legalise official books, and file annual accounts with the Mercantile Registry.
- Filing: An annual IS corporate return, periodic IVA returns (with SII for larger taxpayers), and ongoing payroll and social-security declarations.
- Most favorable
- Favorable
- Mixed
- Least favorable
Compliance risk factors
- SII near-real-time reporting errors for larger taxpayers
- Late periodic IVA or payroll filings
- Not preparing for mandatory Crea y Crece e-invoicing
Tax deadlines overview
3 recurring reporting obligations (cadence, not exact dates).
- Periodic IVA (VAT) returns, with SII records for larger taxpayers
- Annual IS corporate return after the financial year
- Monthly payroll and social-security declarations
Typical mistakes
- Underestimating SII reporting if thresholds are crossed
- Forgetting to legalise official accounting books
- Delaying readiness for B2B e-invoicing
FAQ
- What is the SII in Spain?
- The Immediate Supply of Information system, through which larger taxpayers submit VAT record details to the tax authority in near real time. This is informational only.
- Is B2B e-invoicing mandatory in Spain?
- A mandatory B2B e-invoicing regime under the Crea y Crece law is phasing in by company size and pending implementing regulation; check the tax authority for timing.
Related
Business structures
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Payments
Comparisons
Calculators
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Legal
Sources
- Agencia Tributaria — Agencia Estatal de Administración Tributaria — Spain (accessed )
- European Commission — European Commission — policy and country information (accessed ; reviewed )Covers: EU policy framework including the VAT One-Stop-Shop and single-market rules.Does not cover: Member-state-specific reduced rates, national thresholds, or non-EU jurisdictions.Why it matters: Used for EU/EEA market-access and VAT-OSS framing referenced across rankings and guides.Review cadence: On policy change; re-checked each data review.
- PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed ; reviewed )Covers: Corporate income tax, VAT, and dividend withholding rates across most covered jurisdictions.Does not cover: Your specific effective rate, bespoke incentives, rulings, or transactions requiring professional advice.Why it matters: Used to triangulate rates against primary tax-authority sources, not as the sole authority.Review cadence: Updated by the publisher per tax year; re-checked each data review.
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