New tax rates
November 2013.- Royal Decree-Law 4/2013 introduces a reduced tax rate for newly created organisation which is in force for tax periods from 1 January 2013.
During the first tax quarter these organisations make contributions on the basis of a positive tax base and also the following measures:
- 15% of the tax base between 0 and 300,000 Euros
- 20% for the remaining tax base
Newly created organisations involved in economic activity
In order for these tax rates to apply, the organisation must have been established after 1 January 2013, must be engaged in economic activities, must not form part of a group (article 42 of the Commercial Code), must be located outside domestic premises and must have an obligation to produce consolidated annual financial statements.
The economic activity must not have been carried out previously by other people or entities linked to the newly created organisation. Neither must it have been carried out during the previous year by an individual with a direct or indirect interest of more than 50% in the capital or the equity of the newly created organisation.
Support for entrepreneurs
Law14/2013 on support for entrepreneurs and their international projection introduces new elements to the Corporate Tax Law and measures for facilitating and speeding up entry into Spain of non-EU residents for economic reasons.
New elements in Company Tax Law
- There is a tax rebate for investment of profits on new elements of tangible fixed assets or property investments for the purpose of economic activity. This rebate is applied to the full amount for the year in which the investment is made and consists of 10% of the profit invested in elements, in the case of SME contributor and 5% for micro SME contributors.
- There is a new option for to apply the rebate for R&D. From 1 January 2013 organisations taxed at the general rate with this rebate may opt to apply the rebate to their general terms (article 44.1) or to apply an 80% limit of the total rebate to R&D. If there is insufficient tax payable, this second option allows the company to apply for it from the tax office through its corporate tax return.
- The reduction of income from the cessation of use of certain intangible assets (“Patent Box”), occurring from 29/09/2013 is modified. The reduction goes from 50% of income to 60% of revenue (income-costs) from the cessation of use of certain intangible assets: patents, drawing or models, plans, secret formulae or procedures, information rights related to industrial, scientific or commercial experiences.
- The rebate for the creation of jobs for disabled workers is modified. Different quantities are established according to the degree of disability of the contracted employee and the obligation to sign a permanent contract is removed.
Facilitating and speeding up the entry and residence in Spain of non-EU residents for economic reasons
Law 14/2013 regulates certain considerations for facilitating and speeding up the granting of visas and other authorisations for residency for certain categories of foreigners:
- Entrepreneurs carrying out an innovative activity that is of economic interest to Spain may obtain a visa for a one-year stay from the Spanish Consulate to set up their business project, and once this has been done, obtain a Residency and Work Permit for themselves within twenty days in Spain without having to undertake any other consular procedures.
- Certain highly-qualified professionals, such as graduates and post-graduates from universities and business schools of recognised prestige, may apply for their work permit in Spain through the contracting company, which will obtain it in twenty days. Following this, the employee can apply for their work visa from the Spanish Consulate.
- Staff carrying out training, research, development and innovation activities.
- Foreigners coming to Spain for the purpose of work or professional training with a company or group of companies based in Spain or in another country.
- People making a significant economic investment in general business projects, once the investment has been accredited, may obtain their Residency Visa for a one-year period in ten days. This visa is indefinitely renewable for two-year periods as long as the investment is maintained and the person has visited Spain for at least one day.