The general CIT rate in Spain is 25%. Other tax rates may apply, depending on the type of company that is taxed and its type of business.
Resident companies are taxed on their worldwide income.
For 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).
Newly created companies
Newly created companies are taxed at a 15% tax rate for both the first tax period in which they obtain a profit and the following tax period. This tax rate is not applicable to equity companies (i.e. companies that do not carry on business activity) or to newly created companies that are part of a national or international group.
The reduced rate may also be inapplicable if the company's business activity was previously carried on by a related company or individual.
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, whether or not they are carried out on a particular premises. The tax payable depends on different factors, such as the type of activity carried on and the location and size of the premises where the activity is carried on. As regards limits, the tax may not exceed 15% of the presumed average profits of the business/professional 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.