Tax Load Optimization in Spain

Spain is a country with flexible legislation and a favorable economic environment, where tradition harmonizes with innovation. This makes the country highly attractive to entrepreneurs. With the right strategy, optimizing business tax accounting in Spain can provide maximum benefits.

Corporate Tax Reduction:

Proper tax planning allows businesses to take advantage of all the tax preferences provided by the country’s legislation. For example, new companies are entitled to a reduced corporate tax rate for the first few years.

Contract Base Accounting:

A thorough audit of official agreements with partners helps identify even hidden risks. An optimally selected approach eliminates additional obligations; for instance, international agreements can be used to avoid double taxation.

Individual Approach to the Company:

A detailed study of the company’s features allows us to develop a tailored tax payment scheme. For example, investment projects can always count on a preferential period.

Use of Only Safe Methods:

Our experts offer only those schemes that comply with Spain’s legislation and international standards. This protects clients from possible penalties and fines.

Planning and Analysis:

Constant research and analysis allow for long-term optimization of tax planning with the identification of potential risks.

This is just a small part of the benefits provided by proper tax planning optimization. Every case is unique, so many additional factors must always be taken into account.

The experts at Tax&Development Consulting will assess your company’s tax burden, develop an individual plan considering not only the type of activity but also the current laws. Relying on our expertise and many years of experience, you will be able to make the right decisions on your own to make your business truly successful.

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In Spain, the tax system can work for you, whether you’re a budding entrepreneur or the owner of an international corporation, if you properly leverage all its advantages. Tax optimization and a clear strategy will be the decisive factor in your success.

Tax optimization in Spain is especially beneficial for the following categories:

Entrepreneurs, startups:

At the beginning of your journey, optimization will reduce costs, freeing up funds for new projects and marketing.

Large international companies:

Optimization will help reduce the double tax burden.

Property owners, investors:

In the case of selling a property in Spain, planning will help reduce taxes on the profit obtained from the sale.

Startups involved in innovation and technology:

Spanish legislation encourages the development of such projects, offering tax incentives.

Freelancers working internationally:

Tax planning is a reliable tool to quickly navigate international taxation.

Effective planning requires not only knowledge of tax laws but also an understanding of the specific activities of the company or entrepreneur. Experts at Tax&Development Consulting conduct thorough business audits and offer workable schemes. As a result, your business will become more successful, and your tax burden will decrease.

Anyone who decides to engage in entrepreneurial activity will inevitably face the need to pay taxes. Any optimization planning in this area begins with understanding the main types of taxation and rates in Spain.

IVA (Value Added Tax – VAT):

This is the general sales tax, where rates are variable depending on the type of activity. Some services are exempt (medical, insurance, or educational services), some goods and services are taxed at 10% (such as transport and certain food products), while children’s products are taxed at only 4%.

Impuesto sobre Sociedades (Corporate Tax):

This tax is applied at a fixed rate of 25%. However, for new companies, the rate is reduced to 15% on the first 300,000 euros of income earned in the first two years.

Impuesto sobre la Renta de las Personas Fisicas (Individuals Income)

The rate may vary depending on the region and covers personal income, such as salaries or other forms of income.

Impuesto sobre Bienes Inmuebles (Property Tax):

This tax applies to property owners, particularly when the value of their property exceeds 700,000 euros (with an additional «luxury» tax).

This is just a brief overview of the tax obligations under Spanish legislation. Our specialists will help you navigate through the complex taxation system of the Kingdom of Spain, so you can understand it in the finest detail.