🇪🇸 Resumen fiscal — Spain

Limited Liability Company (SL)

The SL pays Impuesto sobre Sociedades (IS) at a standard rate of 25%. Newly created companies benefit from a reduced rate of 15% for the first tax period in which they generate a positive tax base and the following period. Micro-enterprises with turnover under €1 million may benefit from additional incentives. Spain applies a participation exemption on dividends and capital gains from qualifying subsidiaries (95% exemption, subject to conditions including a minimum 5% holding for at least one year). VAT (IVA) is charged at the standard rate of 21%, with reduced rates of 10% and 4% for certain goods and services. Municipal taxes such as the IAE (Impuesto sobre Actividades Economicas) may apply for companies with turnover exceeding €1 million.