Corporate Tax Calculator for Spanish Companies
Spain corporate tax is 25%. See how much you could save.
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How Spain companies reduce their corporate tax
Spain levies a standard corporate tax (impuesto sobre sociedades) of 25% on net company profits. Newly created companies benefit from a 15% rate for their first two profitable fiscal years. Spanish companies also face additional taxes including local business tax (IAE) and, in some regions, specific surcharges. For companies generating above €500,000 in annual profit, international structuring delivers significant savings. Spain's participation exemption (artículo 21 LIS) allows Spanish holding companies to receive 95% of qualifying dividends and capital gains from foreign subsidiaries tax-free. Cyprus IP Box at 2.5% and Malta IP Box at 5% are the primary corridors for Spanish SaaS and digital product companies. Spanish founders willing to relocate personally to UAE can take advantage of Spanish exit tax provisions under the Beckham Law regime. Our calculator provides a personalised estimate based on your specific business profile.
Top tax corridors for Spain companies
Cyprus IP Box (2.5%)
3% effectiveCyprus IP Box applies to income from patents, computer software, and trademarks, reducing effective tax on qualifying IP income to 2.5%. Spain–Cyprus treaty prevents double taxation. Suitable for Spanish software companies migrating IP ownership to a Cyprus operating subsidiary.
Malta IP Box (5%)
5% effectiveMalta's IP regime taxes qualifying income at effective 5%. With the Spain–Malta double tax treaty in place, royalties can flow from the Spanish operating entity to a Malta IP holding company with limited withholding tax.
UAE Free Zone (9%)
9% effectiveUAE Free Zone status qualifies for 0% corporate tax on qualifying free zone income. For Spanish founders ready to establish genuine UAE presence — office, residence, director presence — the UAE route offers the most significant effective tax reduction. Spanish exit tax must be planned carefully.
Savings example: 🇪🇸 Spain → 🇨🇾 Cyprus IP Box (2.5%)
Annual Revenue
€1.3M
assumed
Tax in Spain
€313K
at 25%
Tax Optimised
€31K
at 3%
Indicative estimate based on statutory rates. Actual savings depend on structure, substance, and individual circumstances.
Frequently asked questions — Spain corporate tax
What is Spain's participation exemption and how does it affect holding structures?
Article 21 of Spain's Corporate Tax Law (LIS) exempts 95% of dividends and capital gains from qualifying foreign subsidiaries from Spanish corporation tax. The remaining 5% is taxed at 25%, giving an effective rate of 1.25% on dividend income. This makes a Spanish holding company viable for groups with active subsidiaries in lower-tax jurisdictions.
Does Spain's Beckham Law apply to business owners?
The Beckham Law (special expats tax regime) applies to individuals who become Spanish tax residents after accepting employment or director roles in Spain. It taxes Spanish-source income at a flat 24% instead of progressive rates up to 47%. Business owners relocating to Spain with foreign income may benefit, though restrictions apply to passive income from controlled companies.
What are Spain's controlled foreign corporation rules?
Spain's CFC rules attribute income from foreign entities to Spanish controlling shareholders when the foreign entity is in a low-tax jurisdiction (effective rate below 75% of Spanish tax) and earns mainly passive income. EU/EEA entities with real economic activity are exempt from CFC attribution.
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