The mainstream corporation tax rate is 30 per cent, applying both to profits and capital gains. For small companies (turnover less than EUR8 million) a rate of 25 per cent applies to the first EUR120,202 and 30 per cent to the balance.
Capital gains made by non-residents are subject to the lower rate of 21 per cent, but there is a withholding of 3 per cent on the sale price, which a purchaser of real estate from a non-resident must pay to Spanish Revenue.
A presumption of residence has been introduced for non-resident companies not protected by an applicable treaty. If such a company owns an asset inSpain, which represents its main asset or the majority of its assets, the company can be presumed to have its centre of vital interests inSpainand therefore be regarded as resident inSpain, unless it can prove otherwise.
Investments in Spanish real estate by companies resident in tax havens are subject to an annual tax of 3 per cent of the property’s fiscal value. Treaty protected companies are not liable to this tax and no longer need apply for exemption.).
Non-residents pay tax at flat rates on the amount of Spanish-source income, for example 24.75 per cent on rentals. EU residents may deduct expenses.
If a property is owner-occupied, tax is payable at 24.75 per cent on a notional income usually of 2 per cent of the catastral value (the property’s official taxable value).
Please note: The information contained in these pages is given without charge and without responsibility. It is not a substitute for proper professional advice which we shall be happy to give if so instructed.