In the Spanish tax system the main taxes applicable are:

Direct taxes

• - Corporate income tax
• - Personal income tax
• - Non-resident income tax

Indirect taxes

• - Value added tax (VAT)
• - Transfer and stamp tax

Other taxes

Excise taxes, Special Tax on Certain Means of Transport, Customs duties on imports, Tax on insurance premiums, Reporting obligations relating to assets and rights abroad.

Local Taxes

Periodic taxes:

• - Tax on real estate (Impuesto sobre bienes inmuebles).
• - Tax on business activity (Impuesto sobre actividades económicas).

Other:

• - Tax on erection and installation projects and construction works
• - Tax on increase in urban land value

Corporate Income Tax

Corporate income tax applies to entities that are tax resident in Spain. Tax-resident entities are taxed on their worldwide income. An entity is considered resident in Spain for tax purposes if it has been formed in accordance with the laws of Spain, or if it has its registered office, or its effective place of management, in Spain. The tax rate is 30%. Lower tax rates apply in certain cases, such as in the case of enterprises of a reduced size.

*IT IS NECESSARY TO KNOW IF THERE IS A TAX TREATY (It may reduce, or even completely eliminate, the taxation in Spain on the income earned by entities which do not have a permanent establishment here). Taxation of nonresidents is dealt with separately from taxation of resident individuals and entities. Nonresident income tax is currently governed by the Revised Nonresident Income Tax Law (Legislative Royal Decree 5/2004, of March 5, and the Nonresident Income Tax Regulations approved by Royal Decree 1776/2004).

More information on the Spanish Tax Agency (Agencia Tributaria) in the following link (information in English)