Europe · Tax guide

Spain

Spain taxes company profits at 25%, with lower rates for small and newly created companies, charges VAT at 21%, requires certified invoicing software (Verifactu) from 1 January 2027, and is phasing in B2B e-invoicing. Taxes are administered by the State Tax Administration Agency (AEAT).

Updated 1 October 2026 · 16 of 20 figures checked against official sources

Check your obligations

At a glance

Corporate income tax
25%

15% for new companies in their first profitable years

VAT (IVA)
21%

Reduced rates 10% and 4%

Verifactu invoicing
1 January 2027

For companies; 1 July 2027 for others

Withholding on dividends
19%

Before treaty or EU relief

Property transfer tax
6% to 11%

On existing property, by region

Global minimum tax
15%

Groups with revenue of €750 million or more

Corporate income tax (Impuesto sobre Sociedades)

The general rate is 25%. Smaller companies are on a phased reduction: in 2026, companies with turnover under the micro limit pay 19% on the first €50,000 and 21% above, and other small companies pay 23%. Newly created companies pay 15% in their first profitable year and the next.

Companies make three advance payments (April, October and December) and file the annual return (Model 200) within 25 days after the six months following the year-end.

  • Self-employed individuals pay income tax at progressive state and regional rates reaching about 47%. Their clients withhold 15% from professional invoices.

VAT (IVA)

VAT is charged at 21%, with reduced rates of 10% and 4% for items such as hospitality and transport, and basic foods, books and medicines. Returns are quarterly (Model 303), or monthly for large companies; the Canary Islands, Ceuta and Melilla have their own indirect taxes.

Verifactu and e-invoicing

Invoicing software must meet the Verifactu requirements — tamper-proof records that can be sent to the AEAT — from 1 January 2027 for companies and 1 July 2027 for sole traders and others.

Separately, B2B e-invoicing is expected to start in October 2027 for businesses with turnover above €8 million, and in October 2028 for everyone else.

Withholding tax on payments abroad

  • Dividends and interest paid to non-residents: 19%, reduced by treaties and EU directives.
  • Royalties: 24% (lower within the EU and EEA), reducible by treaty.

Transfer pricing and the global minimum tax

Related-party transactions must be at arm's length. Companies with turnover below €45 million keep simplified documentation; transactions with one related party above €250,000 a year are reported on Model 232. Groups with €750 million or more file country-by-country reports and are subject to the global minimum tax at 15%.

Property

Buyers of existing property pay transfer tax (ITP) of 6% to 11%, set by each region; new buildings carry VAT and stamp duty instead.

Key dates

  • Quarterly, by the 20thVAT (Model 303) and withholding returns
  • April, October and DecemberCorporate income tax advance payments
  • JulyAnnual corporate income tax return for calendar-year companies
  • 1 January 2027Verifactu invoicing software required for companies
  • 1 July 2027Verifactu required for sole traders and others

Figures and sources

20 figures

Indicative only. This assessment is a high-level overview of Spanish tax obligations based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Spanish tax adviser (asesor fiscal) before making compliance decisions.