Spanish Corporate Tax Regimes: Benefits for Businesses

Special Corporate Tax Regimes in Spain

This document outlines key special tax regimes under the Spanish Corporate Tax Law (TRLIS), offering significant benefits for eligible businesses.

Tax Benefits for Small Companies (TRLIS Articles 108-114)

This regime applies to companies with a turnover below €10 million in the previous year. Key consequences include:

• Reduced Tax Rates:
  • 25% for the first €300,000 of taxable base.
  • 30% for the remainder of the taxable base.
• Accelerated Depreciation:
  • For fixed assets, the maximum depreciation rate is multiplied by 2.
  • For intangible assets, the maximum repayment rate is generally multiplied by 2.
  • In case of asset reinvestment (Article 113 TRLIS), the maximum repayment rate is multiplied by 3.
• Provision for Doubtful Debts (Article 112 TRLIS): Applicable when unpaid loans are present in company accounts. Allows for a provision for insolvency risk up to 1% of existing debtors, in addition to individual insolvency provisions.
• Accelerated Depreciation for Job Creation (Article 109 TRLIS): Requires the acquisition of new plant and equipment, plus an increase in the workforce maintained for 24 months (over the next 24 months). The workforce increase is calculated as the average total for the year minus the average total of the previous year. Consequence: Accelerated depreciation up to €120,000 per increased employee.
• Deduction for Promoting Information and Communication Technologies (ICT): This includes Internet access, web presence, e-commerce, and the incorporation of information and communication technologies. Deduction base: expenditures and investments. Percentage: 15%.

Joint Ventures (JVs) and Economic Interest Groups (EIGs)

Joint Ventures (JVs)

Key characteristics of Joint Ventures:

• A partnership between employers for a specific work, service, or supply within a given timeframe.
• Should not have legal personality.
• Member companies have unlimited liability for the union's acts.

Economic Interest Groups (EIGs)

Key characteristics of Economic Interest Groups:

• A society of entrepreneurs performing an ancillary activity.
• The group does have legal personality.
• Profits of the group are considered profits of the members.
• The group cannot control the economic activity of others, unlike a dominant company.

Under this regime, each resident member company is taxed: either under Income Tax (for individuals) or Corporate Tax (for legal entities). The EIG itself is not subject to Corporate Tax (IS).