The general CIT rate in Spain is 25%. Other tax rates may apply, depending on the type of company that is taxed and the type of business carried out.
Resident companies are taxed on their worldwide income.
For permanent establishments (PEs) in Spain of foreign companies, non-resident income tax (NRIT) is chargeable on income that may be allocated to the PE at a 25% tax rate.
NRIT is also chargeable on non-established foreign companies/individuals that obtain income in Spain (see the Withholding taxes section).
Companies with a turnover under EUR 10 million in the preceding tax year (considering, in the case of a group of companies, the group companies' total turnover) are considered small companies for CIT purposes and are taxed at a 25% tax rate.
Newly created companies
Newly created companies are taxed at a 15% tax rate for tax periods starting on or after 1 January 2015, provided that they have been set up after that date, for both the first tax period in which they obtain a profit and the following tax period. This tax rate is not applicable to companies that, by law, are considered equity companies or to newly created companies that are part of a national or international group.
The reduced rate may also be inapplicable if such business activity was previously carried out by a related entity or individual.
Newly created companies that are set up in tax periods starting prior to that date will continue to be taxed at a 15% tax rate on their tax base up to EUR 300,000 and a 20% tax on any excess in these two periods.
Business and professional activities tax
The business and professional activities tax is a local direct tax levied annually on the performance in Spain of business, professional, or artistic activities, regardless of whether or not they are carried out in a particular premises. The tax payable depends on different factors, such as the type of activity carried out and the location and size of the premises where the activity is carried out. As regards limits, it may not exceed 15% of the presumed average profits of the professional/economic activity.
CIT payers and non-resident companies carrying on an activity in Spain through a PE are exempt from this tax if their net turnover for the tax year of the last CIT/NRIT return filed prior to the date of accrual of the local tax (1 January) was less than EUR 1 million.