Tax Law in Spain
Spain has a three-tiered taxation system – municipal, regional and national.
The main taxes for residents: Individual Income Tax (IRPF) is a subjective, annual and progressive tax. The tax is paid by individuals living in Spain. It is based on wages, other income from professional or business activities, income from real estate, rental property, income from trading transactions, dividends from shares, capital and other factors.
Basic taxes for non-residents: Non-resident Income Tax (IRNR). This direct tax is levied on income earned by non-residents (individuals and companies) on Spanish territory. All non-residents in Spain must pay property transfer tax, VAT, car tax, legal acts and real estate tax on a general basis.
Taxes for legal entities: Corporate Income Tax (Impuesto de Sociedades). A periodic, proportional and direct tax on the income of corporations and other legal entities. It is applicable in all regions of Spain. Applies to all resident legal entities (except civil societies) of any form or name.
Professional assistance for legal and natural persons and sole traders includes:
- advice on legal aspects of taxation
- corporate income tax and VAT planning
- legal support for accounting activities
- calculating personal income tax
- calculating income tax on foreign nationals
- registration of private entrepreneurs and legal entities
- company liquidation