If you’re thinking of starting a business in Spain, understanding how the Corporate Tax works is key to getting off on the right foot. This tax directly affects the profits of all legal entities and represents one of the main tax obligations from the very first fiscal year.
Below, we clearly explain everything you need to know: who is required to pay it, what the tax rates are, how to calculate the taxable base, which tax deductions you can apply, and how to properly file Form 200. We also cover the latest tax updates and offer practical advice to help you avoid common mistakes and optimize your tax position from day one.
Whether you’re a self-employed individual planning to incorporate a company, or an entrepreneur launching a startup, this content is designed to help you understand the fiscal landscape ahead and make informed decisions from the start.
What Is the Corporate Tax in Spain?
Corporate Tax is a direct tax levied on income earned by companies and other legal entities with tax residence in Spain. It is one of the core taxes in the Spanish tax system and applies to most legal entities established in the country, such as limited liability companies (SL), public limited companies (SA), and other corporate structures.
Unlike personal income tax (IRPF), which applies to individuals, this tax is applied to the net business profits generated during the fiscal year. It is regulated by the Corporate Tax Law and administered by the Spanish Tax Agency (Agencia Tributaria).
This tax involves not only an annual payment through Form 200, but also a series of ongoing tax obligations that every company must be aware of from its incorporation.
Who Is Required to Pay Corporate Tax in Spain?
All legal entities and organizations with tax residence in Spain that generate profits are required to pay this tax, regardless of their size or turnover. The obligation to pay arises from the moment the entity starts its economic activity, even if it has not yet generated profits.
The main entities subject to Corporate Tax include:
- Limited liability companies (SL)
- Public limited companies (SA)
- Civil companies with a commercial purpose
- Cooperatives and business associations (depending on their nature and activity)
- Foundations and partially exempt entities (according to tax law provisions)
Entities that are still registered as active with the Tax Agency, even if they have not carried out any economic activity during the year, are also required to file a tax return. This remains part of their tax obligations as long as they retain legal personality.
Corporate Tax Rates in Spain for 2025
The corporate tax rate depends on the type of entity, income level, and other fiscal conditions. In 2025, the following rates apply:
| Type of Entity | Tax Rate |
|---|---|
| General rate | 25% |
| Newly created entities | 15% during the first two tax years in which a positive taxable base is declared |
| Companies with income below €1 million | 23% |
| Large companies (subject to tax consolidation or high turnover) | Minimum taxation of 15% on accounting profit, with certain exceptions |
These tax rates aim to balance the fiscal burden between small and large entities, encouraging the growth of newly established SMEs and startups in Spain.
Taxable Base and Applicable Deductions
How Is the Taxable Base Calculated?
The taxable base for Corporate Tax is determined from the company’s accounting profit, after applying the necessary tax adjustments as required by Spanish tax legislation. These adjustments include permanent and temporary differences between accounting and tax profit.
In other words, it’s the net profit adjusted for tax purposes, used as the basis to calculate the tax amount. The company’s accounting must comply with the Spanish General Accounting Plan (PGC) and accurately reflect the business activity.
Tax Deductions and Credits
Once the taxable base is calculated, it is possible to reduce the final tax liability through legally recognized tax deductions. Some of the most relevant deductions in 2025 include:
- Capital reserve (reserva de capitalización): reduces the taxable base when profits are reinvested and equity is increased.
- Investment in R&D&I: deductions for activities related to research, technological development, and innovation.
- Job creation: incentives for hiring new employees or maintaining jobs for individuals with disabilities.
- Internationalization and export: deduction for investments aimed at expanding the company’s international presence.
These deductions are essential for efficient tax planning and can significantly lower the tax burden when applied correctly.
Tax Obligations When Starting a Business
From the moment a company begins operations in Spain, it assumes a series of tax obligations that must be strictly followed to avoid penalties and ensure legal and transparent management.
These are the main tax procedures required when forming a legal entity or commercial company:
- Registration with the Tax Agency using Form 036 or 037: This step is mandatory to register in the Business, Professionals and Withholders Census and to notify the start of economic activity.
- Registration for the Economic Activities Tax (IAE): Although many SMEs are exempt based on turnover, they must still declare their relevant activity code.
- Accounting in accordance with the General Accounting Plan: All companies must maintain organized accounting that complies with legal standards and accurately reflects business operations.
- Regular tax filings: Includes quarterly filing of forms such as 303 (VAT), 111 (withholdings), and installment payments of Corporate Tax (Form 202), along with the annual declaration using Form 200.
These tax obligations apply continuously from the first fiscal year, even if the company generates no income or profits.
Form 200: Corporate Tax Return
Form 200 is the official form used by companies to file their annual Corporate Tax return with the Spanish Tax Agency. It includes the fiscal year’s result, taxable base, applied deductions, and the final amount payable or to be offset.
The submission of Form 200 is done exclusively online through the Spanish Tax Agency’s electronic headquarters (agenciatributaria.es) using a digital certificate, electronic DNI, or Cl@ve PIN.
Filing Deadline
The general deadline for submitting Form 200 is from July 1 to July 25 of the year following the end of the fiscal year (usually December 31). If the company’s fiscal year does not follow the calendar year, the deadline is within 25 calendar days following the six months after the fiscal year-end.
Who Must File?
All legal entities resident in Spain subject to Corporate Tax are required to file, even if they have not carried out any activity or generated profits during the fiscal year. This includes:
- Commercial companies (SL, SA, etc.)
- Civil companies with a commercial purpose
- Foundations and associations with tax obligations
- Partially exempt entities, if they exceed certain thresholds
Meeting this filing obligation on time is crucial, as failure to do so—or filing late—can result in significant financial penalties.
Key Tax Developments for 2025
In 2025, several new tax measures have been introduced affecting the Corporate Tax, aimed at encouraging business capitalization, boosting job creation, and enhancing the competitiveness of the Spanish business sector.
1. Capitalization Incentives
The capital reserve has been expanded for companies that reinvest profits and increase equity. This measure allows businesses to reduce their taxable base and pay less tax while strengthening their financial position.
2. Adjustments to Minimum Taxation
The 15% minimum tax rate for large companies has been reinforced, calculated on accounting profit before applying deductions or tax credits. This measure ensures a minimum tax contribution, particularly among highly profitable entities using multiple deductions.
3. Enhanced Tax Deductions
R&D&I and job creation deductions have been increased in both rate and eligibility to make them more accessible for SMEs and startups. Requirements for claiming technology and innovation investment incentives have also been simplified.
4. New Reporting Obligations
Companies must now provide more detailed information in Form 200 regarding any tax benefits claimed, increasing tax transparency and oversight by the Spanish Tax Agency.
These reforms aim to strike a balance between revenue collection, administrative simplification, and fiscal incentives for business growth. New companies are strongly advised to consult with a tax advisor to take full advantage of these changes from their first year of operation.
Common Mistakes to Avoid
Starting a business often leads to avoidable mistakes that may result in penalties or increased tax burdens. Below are some of the most common tax errors related to Corporate Tax that you should avoid from year one:
- Failing to file Form 200 on time: Late or missed submissions can lead to surcharges, fines, and even audits.
- Omitting income or deductible expenses: Whether due to lack of knowledge or poor accounting, this can result in an incorrect taxable base and inaccurate tax calculation.
- Not following the Spanish General Accounting Plan (PGC): This is mandatory for all legal entities. Non-compliance may invalidate deductions or cause discrepancies in tax filings.
- Overlooking eligible deductions and incentives: Failing to claim tax credits for R&D&I, job creation, or the capital reserve may lead to unnecessarily high tax payments.
- Relying on improvised solutions or lacking tax advisory: Business taxation is complex and constantly evolving. Without expert advice, costly mistakes are likely.
Proper tax planning, accurate accounting, and strict compliance with tax obligations will help you avoid these pitfalls and optimize your tax position from the outset.
Tax Tips for New Businesses
Starting a business in Spain means navigating a complex tax system. These tax tips for new entrepreneurs will help you stay compliant and make the most of your resources from the beginning:
- Hire a tax advisor from day one: Our professionals can help you choose the right legal structure, plan your taxes, and fulfill all tax obligations properly.
- Make the most of available deductions for new businesses: We can guide you through benefits like R&D&I deductions, the capital reserve, and employment creation incentives.
- Maintain clear, organized, and up-to-date accounting: At Gutiérrez Pujades, we follow the General Accounting Plan and record all transactions accurately—key to avoiding Corporate Tax errors.
- Plan your tax prepayments: We also calculate installment payments under Form 202 to prevent cash flow issues or surprises at year-end.
- Stay informed about regulatory changes: Tax regulations are updated frequently, so reviewing applicable deductions and updates annually is essential.
Effective tax planning from the start can make the difference between a well-managed company and one exposed to penalties or unnecessary costs.