Spanish Tax System: A Comprehensive Guide

Spanish Tax System

Income Tax

• Taxable Event: Worldwide income obtained by Individuals
• Taxpayer: Spain Resident Individuals
• Accrual: December 31

Corporation Tax

• Taxable Event: Worldwide income obtained by Companies
• Taxpayer: Spain Resident Companies
• Accrual: Last day of Tax Year

Non-Resident Income Tax

• Taxable Event: Income obtained in Spain by Non-Resident Individuals or Companies
• Taxpayer: Non-Resident Individuals or Companies
• Accrual: Depends on whether or not operations are carried on through a PE in Spain.

Wealth Tax

• Taxable Event: Worldwide assets owned by Individuals
• Taxpayer: The owner (Spain Resident Individuals)
• Accrual: December 31

Gift and Inheritance Tax

• Taxable Event:
  • Gift Tax: Acquisition inter vivos
  • Inheritance Tax: Acquisition mortis causa
  • Life Insurance
• Taxpayer:
  • donee
  • successor in title
  • beneficiary
• Accrual:
  • date of gift
  • date of death
  • date of death

Transfer Tax

• Taxable Event: Transfers not taxed by VAT
• Taxpayer: Acquirer
• Accrual: Date of transmission

VAT

• Taxable Event: Supply of goods and services
• Taxpayer: The person who carries out an economic activity
• Accrual: Date of supply of goods or services

Excise Tax

• Taxable Event: Alcohol, spirits, tobacco, hydrocarbon, Electric Power and Coal
• Taxpayer: Producer or Importer
• Accrual: Date of supply

Insurance Premiums

• Taxable Event: Insurance Premiums
• Taxpayer: Insurance Companies
• Accrual: Date of payment of premiums

Tax on Bank Deposits

• Taxable Event: Deposits created by Credit Institutions
• Taxpayer: Credit Institutions and branches of non-resident entities
• Accrual: Last day of Tax Year

Special Tax on Lottery Prizes

• Taxable Events: Prizes obtained from lottery organized
• Taxpayer: The winner (individuals or companies)
• Accrual: Date of collection of the prize

Tax on Storage of Spent Nuclear Fuel and Radioactive Waste in Centralized Installations

• Taxable Event: Storage of spent nuclear fuel and radioactive waste in centralized installations.
• Taxpayer: Owners (individuals or companies) of the installation where the radioactive waste is stored.
• Accrual: Last day of Tax Year

Tax on Production of Electric Energy

• Taxable Event: Production of Electric Energy.
• Taxpayer: Producers of electric energy (individuals or companies)
• Accrual: Last day of Tax Year

Tax on Production of Spent Nuclear Fuel and Radioactive Waste

• Taxable Event: Production of spent nuclear fuel and radioactive waste coming from the generation of nucleoelectric energy.
• Taxpayer: Producers of spent nuclear fuel and radioactive waste (individuals or companies).
• Accrual: Last day of Tax Year. Meaning by Tax Year the cycle of operation* of each reactor

Tax on Business Activities

• Taxable Event: Performance of the Business Activity
• Taxpayer: The person who carries out the activity
• Accrual: January 1st or beginning of the activity

Tax on Real Estate

• Taxable Event: To be owner of a building
• Taxpayer: The owner
• Accrual: January 1st.

Tax on Vehicles

• Taxable Event: The ownership of vehicles
• Taxpayer: The owner
• Accrual: January 1st or day of acquisition (new)

Tax on the Increase in Value of Urban Land

• Taxable Event: When Urban Land or building is transferred.
• Taxpayer:
  • From a free of charge business: acquirer
  • From a regular business: transferor.
• Accrual: When the transfer takes place

Tax on Building Works

• Taxable Event: Building Works (construction, installation) based on its budgeted cost
• Taxable person: owner of the Works
• Substitute: the person who applies for the permit
• Accrual: Beginning of the Works