(+34) 913 497 100 | Home Why invest in Spain? Taxation Spain, a tax system that promotes innovation Home Why invest in Spain? Taxation The OECD recognizes Spain as one of the most willing countries to promote RDI activities. Investments in knowledge transfer and job creation also benefit from special tax treatment. Moderate corporate tax moderate Spain’s corporate tax rate within the Eurozone is moderate (25%) and incentives and tax exemptions can reduce the effective tax rate to around 20%. Corporate tax rate Tax incentives to promote foreign investment and entrepreneurship Tax incentives for RDI Up to 42% corporate income tax credit for RDI activities. In case of insufficient income tax liability, Spanish regulations allow unused tax credits to be carried forward to RDI investments. Spain has one of the most advantageous "patent box" regimes in the EU: Up favourable to a 60% exemption of net income resulting from the use of certain intangible assets transferred or licensed to another entity (patents, models, designs, formulas or projects). There are a large number of aid and incentive programs from Spanish and European administrations, with an emphasis on research, development and technology and innovation (RDTI). Learn more about Innovation in Spain Tax adjustments for international companies Spain is a platform for international business and investment opportunities. The Spanish tax system is advantageous to international companies that can benefit from the 94 double taxation agreements signed by Spain and currently in force, particularly with Latin American countries. The “participation exemption” scheme benefits international companies. Dividends and capital gains obtained from the transfer of shares of non- resident subsidiaries in Spain are exempt from taxation. Spain has a special tax regime for holding companies ("Spanish Holding Companies"-ETVE) that allows dividends and capital gains from the transfer of shares from subsidiaries to be exempt from taxation. Tax regime highly attractive Highly attractive The fixed rate of personal income tax for the first six years is 24% on all income up to €600,000, and 47% on income over €600,000 if the expatriate has not lived in Spain for the ten fiscal periods prior to relocating to the country, in which case, returns from savings earned abroad are not taxed in Spain. Tax neutrality for business restructuring There is a tax neutrality regime in Spain for business restructuring operations so that mergers, demergers or any other structural reorganization can be done without tax-related penalties. Our brands: Invest in Spain About Us Global Network Regions Innovation Startups Sustainability LATAM Desk China Desk Publications Events What's on Why Spain Economy Infrastructures Talent Taxation Quality of Life Industries Aerospace Agri-food Audiovisual Automotive and mobility Chemical industry ICT Life Sciences Logistics and transport Renewable Energy Tourism and Leisure Doing Business Company set up Taxes Labour market Aids and incentives Visas Intellectual property Living in Spain We help you Innova Invest Smart Technology Fund Investors Network Investor Services Rising Up in Spain Social Networks European Regional Development Fund A way to make Europe All rights reserved. ICEX © 2020 Legal Terms Privacy policy Cookies policy Site Map Accessibility COOKIES NOTICE We use our own and third-party cookies exclusively for internal and analytical purposes. They allow us to remember, control and understand how users navigate through our website so we can offer a service based on the user's browsing information. Some belong to third parties in countries whose legislation does not guarantee an adequate level of data protection. Click here for more information about our cookie policy. You can accept all cookies by clicking the "Accept" button or configure or reject their use by clicking "Settings". ACCEPT SETTINGS