A Corporate Income Tax with many favourable rebates (IS)
The Corporate Income Tax general rate is 28% (25% for SMEs) and can be noticeably reduced when certain legally established tax benefits, such as those affecting R&D and innovation, are applied.
Take advantage of the Non-resident tax system
Available income of individuals is taxed according to a progressive rate scale ranging from 22% to 49%. Expatriate workers can choose between the general tax system or the non-resident tax system (IRNR) at the fixed rate of 20% for dividends, interest and capital gains. Income generated in other countries is not subject to the tax on this Spanish income.
Value Added Tax (VAT)
Three different rates are applied: 4%, 10% or 21%.