Spain: An attractive country for investment
Setting up a business in Spain
Investment aid and incentives in Spain
Labor and social security regulations
Intellectual property law
Legal framework and tax implications of e-commerce in Spain
Company and Commercial Law
The Spanish financial system
Accounting and audit issues
- Central government taxes
- Corporate Income Tax
- Personal Income Tax
- Nonresident Income Tax
- Wealth Tax
- Inheritance and Gift Tax
- Spanish Value Added Tax
- Transfer and Stamp Tax
- Excise and Special Taxes
- Custom Duties on Imports
- Tax on Insurance Premiums
- Tax on Financial Transactions
- Tax on certain Digital Services
- Reporting obligations relating to Assets and Rights Abroad
- Tax on fluorinated greenhouse gases
- Excise tax on non-reusable plastic packaging
- Tax on waste sent to landfill, incineration and co-incineration
- Temporary taxes introduced by Law 38/2022 of December 27, 2022
- Special regime for startups
- Special Regimes of certain Autonomous Communities
- Local taxes
- Exhibit I - Corporate income tax incentives for investment
- Exhibit II - Treaty tax rates
- Exhibit III - Practical examples
- Exhibit IV - Case of Application of the Regime for foreign-securities holding companies (ETVE)...
- Exhibit V - Nonresident case study: Income obtained without a permanent establishment
- Exhibit VI - VAT case study
2Central government taxes
2.7 Transfer and stamp tax
Transfer and Stamp Tax is levied on a limited number of transactions, including most notably:
|Tax Rate (*)||(%)|
|Corporate transactions. (**)||1|
|Transfers of real estate.||6|
|Transfers of movable assets and administrative concessions.||4|
|Certain rights in rem (mainly guarantees, pensions, security or loans).||1|
|Certain public deeds.||0.5|
- The Autonomous Communities are entitled to opt to apply a different rate in certain cases. In fact, most of them have opted to apply a 7% rate (and even higher rates) to real estate transfers, and a 1.5% rate of Stamp Tax to certain transactions.
- At present, business restructuring transactions, company formations, capital increases, shareholder contributions in general and certain transfers of the place of effective management or registered office are not taxed.
However, if the vendor is a company or an individual real estate developer, the transfer of buildable land or the first supply of buildings is taxed under VAT. Second and subsequent supplies of real estate by companies, traders or professionals in the course of their activity may opt to pay either transfer tax or VAT. This option is applicable if the acquirer is a trader or professional who can deduct all his VAT borne and the vendor waives to the VAT exemption, in which case, the acquirer will pay VAT rather than transfer tax (this option was only possible if the recipient could deduct all of the VAT borne, although starting on January 1, 2015, it will suffice for the right to the deduction to be partial, even if due to the expected use of the goods transferred).
Transfers of shares of Spanish companies are generally exempt from any indirect taxation. However, they can trigger taxation under VAT/transfer tax if real estate companies are transferred (that is, companies in which more than 50% of the assets are real estate located in Spain not assigned to business or professional activities) where the control of those entities is acquired, if it is considered that the transfer is carried out with an “avoidance aim”. An “avoidance aim” is presumed to exist (unless proven otherwise) where the acquirer obtains control of a real estate company and its real estate (or the real estate of the real estate companies owned by that company, the control of which is acquired) is not assigned to economic activities.
In these cases, the transaction will be subject to VAT or to transfer tax, as appropriate.
It should be noted, lastly, that unlike VAT, transfer tax entails a cost for the acquirer/beneficiary.