Taxation services in Spain: Planning and managing your taxes in Spain.
At LegalTax, our experienced team of tax lawyers in Madrid is dedicated to providing comprehensive and personalized tax services to international individuals and companies. We understand the unique challenges faced by foreign businesses entering the Spanish market, and we’re here to guide you through every step of the process.
Whether you are a resident individual, a non-resident investor, or a multinational corporation established in Spain through a subsidiary or a branch, our team will offer you a comprehensive legal assessment to identify and understand your unique fiscal obligations. This personalized approach ensures you comply with all relevant regulations, protecting your company from potential legal or financial repercussions.
We not only provide tax management, but also:
Tax Planning: We work with you to develop a customized tax plan that minimizes your overall tax burden and ensures compliance with Spanish tax law.
General Tax Advice: We provide comprehensive legal advice on a wide range of tax issues relevant to international clients in Spain.
Tax Reviews: We conduct thorough tax reviews to identify potential tax liabilities and ensure compliance with Spanish tax regulations.
Assistance in IRS Inspections: We represent you during IRS inspections in Spain, protecting your rights and interests throughout the process.
We go beyond simply ensuring compliance. Our expertise in Spanish fiscality allows us to advise you on strategies to optimize your tax situation and maximize your financial benefits. We can help you structure your business in a way that is both tax-efficient and aligns with your long-term goals.
Contact us today to schedule a consultation and get to know our taxation services in Spain. Let us discuss how our expertise can help your international business thrive in Spain.
Non-Resident Taxation in Spain Administration and Planning
We provide non-resident companies and individuals complete assistance in the filing in Spain of mandatory taxes and the management of tax returns.
Corporate Income Tax Administration and Planning
Corporate Tax Administration and Advanced Payments: We manage corporate tax registration, filing of corporate tax returns, and calculation and payment of advanced corporate tax installments. We ensure your annual corporate tax return is accurately filed, minimizing your tax liability.
VAT Administration and Planning
VAT Administration and Planning: We assist with VAT registration, compliance with VAT regulations, filing of VAT returns, and reclaiming VAT credits. We ensure your annual VAT report is accurately prepared and filed on time to avoid penalties.
Personal Income Tax Administration and Planning
Personal Income Tax Administration: We handle all aspects of personal income tax filing for resident and non-resident individuals in Spain.
Frequently Asked Questions
Who needs to file taxes in Spain?
In Spain, most residents and non-residents with economic activity in the country are required to file taxes. This includes income earned from employment, self-employment, property ownership, investments, and pensions. There are specific tax obligations for different types of taxpayers, so it’s best to consult with a tax professional to determine your exact filing requirements.
What are the main taxes I need to be aware of in Spain?
For businesses operating in Spain, the primary tax is:
- Corporate Income Tax (Impuesto sobre Sociedades – IS): This is a tax levied on the worldwide income of companies considered tax residents in Spain. The general corporate tax rate is 25%, with potential deductions and incentives available.
Individuals may also encounter:
- Income Tax (Impuesto sobre la Renta de las Personas Físicas – IRPF): This is a progressive tax levied on your worldwide income, including business income for self-employed individuals.
- Value Added Tax (Impuesto sobre el Valor Añadido – IVA): This is a consumption tax applied to most goods and services.
There are also other taxes you may encounter depending on your circumstances, such as wealth tax, inheritance tax, and property tax.
What about Non-Resident Income Taxation (NRIT)?
Non-resident income tax (NRIT) (Impuesto sobre la Renta de No Residentes, IRNR) applies to income earned in Spain by non-resident companies or individuals who do not have a permanent establishment (PE) in Spain. This tax is typically levied at a flat rate of 24% on income such as:
- Royalties
- Dividends
- Interest
- Rental income from Spanish property
There are tax treaties with many countries that may reduce the withholding tax rate or even eliminate it altogether. We can advise you on the specific NRIT rules that may apply to your situation.
When are tax returns due in Spain?
The deadline for filing corporate income tax returns (IS) is typically 25 days following the four months after the company’s fiscal year-end. However, there are exceptions and variations depending on your specific situation. It’s important to consult with a tax advisor to confirm the specific deadline for your company.
Individual income tax return (IRPF) deadlines typically fall in June of the following year.
