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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
From January 1 to December 31 of the same year.
Accounting Standards
Accounting in Spain is based on the General Accounting Plan.
Accounting Regulation Bodies
ICAC
Accounting Reports
The annual accounts consist of the balance sheet, income statement, (cuenta de perdidas y ganancias), net assets modification statement, cash flow statement and the schedule (memoria). Summary annual accounts can be used under certain conditions of amount and staff for the SME and micro-enterprises.
Publication Requirements
The publication of accounts to regulatory authorities is annual and compulsory. 
Professional Accountancy Bodies
ICCAC , Accounting and Auditing Institute
ICJCE , Institute of Certified Public Accountants of Spain
AECE , Professional Association of Certified Public Accountants and Certified Tax Experts of Spain
Spanish Association of Tax Consultants
AECA , Spanish Association of Company Accounting and Administration
Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can consult the Association of public auditors of Spain.
Accounting News
EIN Website on Spain

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Tax Rates

Consumption Taxes

Nature of the Tax
Impuesto sobre el Valor Anadido (IVA).
Tax Rate
21%
Reduced Tax Rate
10% for food and non-alcoholic beverages, veterinary drugs, health equipment and products, accommodations, some passenger transport systems, average and low end hotels and restaurants, etc.
4% for essential foodstuff, medicines, cultural goods, cars for physically handicapped, construction, etc.
Other Consumption Taxes
There are special taxes:
- IIEE: special production tax (alcoholic drinks, hydrocarbons, tobacco, electricity) ;
- IEDMT : special tax on certain means of transport ;
- Special tax on carbon ;
- IVMDH: tax on retail sales of some hydrocarbons.

Learn more about Service Providers in Spain on Globaltrade.net, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
28%
Tax Rate For Foreign Companies
The companies set up in Spain are taxed on their worldwide revenues and profits, while the foreign (non-resident) companies are taxed only on their revenues made in the country.
Capital Gains Taxation
Capital gains are taxed as ordinary income. The rate is 30%.
Main Allowable Deductions and Tax Credits
Relief for Ceuta and Melilla territories, export business, local public service, deductions for R&D activities, technological innovation, TIC development, protection and distribution of historical assets, investment in movie and audiovisual productions, publishing books, investment in environment protection or in geographic positioning systems via satellite or mobility of persons with handicaps, childcare, professional training, job creation for handicapped people, reinvestment of excess profits, employer contribution to special worker protection systems.
Tax rebate exists but is not used much. Compensation for losses can benefit from a tax rebate over 15 years.
Other Corporate Taxes
1% capital duty is levied on the contribution of capital and upon liquidation. Nonresidents pay a special 3% tax (except if there is a tax treaty with Spain in force). Stamp duty of 0.5% levied on notarized document.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Spain OECD United States Germany
Number of Payments of Taxes per Year 8.0 12.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 167.0 176.0 175.0 207.0
Total Share of Taxes (% of Profit) 38.7 42.7 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Income Tax (IRPF) Progressive Tax Rate from 24,75% to 52%.
From EUR 0 to 17,707 24.75%
From EUR 17,707 to 33,007 30%
From EUR 33,007 to 53,407 40%
From EUR 53,407 to 120,000 47%
From EUR 120,000 to 175,000 49%
From EUR 175,000 to 300,000 51%
More than EUR 300,000 52%
Savings tax A 21% tax is levied on savings income up to EUR 6,000, 25% tax on savings income between EUR 6,000 and EUR 18,000 and a 27% tax on savings income over EUR 18,000.
Allowable Deductions and Tax Credits
Some expenses are deductible from each type of income. A deduction for social security contribution is permitted.
Special Expatriate Tax Regime
Incomes from Spanish source are taxed at the rate of 24.75% (for wages) and 21% (for dividends and gains relating to property).

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of non-double taxation agreements signed by Spain
Withholding Taxes
Dividends: 20%, Interest: 20%, Royalties: 20% for residents of the EU/EEA and 24% for all other non-residents.

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Sources of Fiscal Information

Tax Authorities
Spanish Tax agency
Other Domestic Resources
Tax information on Spain
CIDEM

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Intellectual Property

National Organizations
Oficina Espanola de Patentes y Marcas for patents and trademark registrations.
Intellectual Property Central Registry
The competencies related to intellectual property were transferred to the Autonomous Communities which have their own registry, in coordination with the State Registry.
Regional Organizations
OEB, European Patent's Office, OHIM, Office for harmonization in the interior market.
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
« Ley de patentes » (11/1986 of March 20)
20 years
Trademark
 
« Ley de marcas » (17/2001 of December 7)
10 year protection, renewable by 10 year periods. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design
 
« Ley de protección Jurídica del Diseño Industrial » 20/2003 of July 7)
5 year protection, renewable for 5 year periods, up to 25 years maximum.  
Copyright
 
Royal Legislative Order 1/1995 of April 12
lifetime of the author plus 70 years after his death. WIPO Copyright Treaty
Industrial Models
 
Royal Law-Order of July 26, 1929
20 years  

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Legal Framework

Independence of Justice
Judicial power is largely independent in Spain; however, it was affected by the Basque county terrorism to the extent that judiciary employees and policemen were the target of the separatist group ETA.
Equal Treatment of Nationals and Foreigners
Foreign nationals can expect an impartial proceeding in judicial matters.
The Language of Justice
Spanish.
Recourse to an Interpreter
Possible but only those selected by the Ministry of Foreign Affairs (list of interpreters and sworn translators).
Sources of the Law and Legal Similarities
Spanish laws' foundations are in the 1978 Constitution, then in the Community Directives from 1986. The judicial system of the county is based on a civil right system with regional variations. Spain accepts the mandatory jurisdiction of the International Court of Justice (ICJ) with reservations.
Checking National Laws Online
Norma Civil
Derecho.com
1978 Constitution in English

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Standards

National Standards Organizations
Spanish Association for standardization and certification (AENOR)
Integration in the International Standards Network
At European level:
- European Committee for Standardization (CEN)
- European Committee for Electrotechnical Standardization (CENELEC)
- European Telecommunications Standardization Institute (ETSI)

At the international level:
- International Standard Organization (ISO)
- International Electrotechnical Commission (IEC)
- International Telecommunications Union (ITU)
Classification of Standards
UNE, national certification mark.
CE, European certification mark.
Online Consultation of Standards
The catalog of Spanish standards
The catalog of European standards
The ISO catalog
The IEC catalog
Certification Organizations
Accredited certification companies

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Business Practices

General Information
Executive planet
Kwintessential
Opening Hours and Days
Closed the afternoon between 2:00 pm and 4:00 pm, and the evening around 8:00 pm. (10:00 pm. for the superstores/ hypermarkets).
In July and August, closed at 3:00 pm. Banks close to the public at 2:00 pm.
Closed on Saturday afternoons and on Sundays (except major brands, all are closed on Sundays).
 

Public Holidays

New Year January 1
Twelfth Night - Epiphany (Festival of Mages Kings) January 6
Good Friday the Friday before Passover/ Easter (March/April)
Labor Day
May 1
Assumption
August 15
National Festival (Día de la Hispanidad) October 12
All Saints Day November 1
Constitution Day
December 6
Immaculate Conception Festival
December 8
Christmas December 25
St Stephen's Day December 26
 
Holiday Compensation
If a public holiday falls on a Saturday or Sunday, the Monday is a holiday instead.
 

Periods When Companies Usually Close

Christmas and New Year holidays Between December 25 and January 6.
Summer vacation August
Holy Saint Week From Thursday to Sunday of Passover.
 

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Last Updates: January 2015