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
3.2 Other taxes
3.2.1 Tax on erection and installation projects and construction work
This tax is levied on the actual cost of any work or construction activity that requires prior municipal permission, excluding VAT and any similar taxes.
The tax rate will be set by each municipal council up to a top rate of 4%, and the tax falls due at the start of the project regardless of whether the permit has been obtained.
3.2.2 Tax on increase in urban land value
This tax is levied on the increase disclosed in the value of urban land whenever land is transferred.
- Taxpayer: In transfers for consideration, the transferor, and in donations, the transferee.
- Tax rate: The rate set by each municipal council and capped at 30%.
- Tax base54: The increase in the value of the land. The tax base is determined by reference to the value of the land when the tax falls due, which in the transfer of land will be the value that has been determined for the purposes of property tax. Certain annual percentages will be applied to this value based on the ownership period, which will be determined by each municipal council, and may not be higher than certain limits. In any case, if the taxpayer proves that the amount of the value increase is lower than the tax base determined as stated above, the amount of that value increase shall be taken as the tax base.
This tax is deductible for personal income tax purposes from the transfer value of real estate.
54The rules for determining the tax base were amended by Royal Decree-law 26/2021, of November 8, 2021, for the taxable events accruing after November 9, 2021, as a result of the Constitutional Court judgment 59/2017, of May 11, 2017, whereby the Constitutional Court declared the previous legislative regulation unconstitutional. In any case, that Royal Decree-law has been contested and is currently the subject-matter of an appeal for a ruling of unconstitutionality.