Starting a business in Spain involves a series of tax and accounting obligations that can be complex for those who are not familiar with current regulations. Having a tax advisor from the outset can be a strategic decision that facilitates compliance with these obligations and optimises the company’s tax burden.
1. What is a tax advisor and what is their role?
A tax advisor is a professional specialising in tax and accounting regulations who advises companies and individuals on how to comply with their tax obligations and optimise their tax burden. Their duties include:
- Tax planning: Designing strategies to take advantage of tax benefits and deductions.
- Tax filing: Managing and filing returns such as VAT, personal income tax and corporation tax.
- Representation before the tax authorities: Acting on behalf of the company in the event of inspections or requests.
- Advice on business operations: Providing guidance on mergers, acquisitions or restructuring.
In addition, a tax advisor keeps up to date with legislative developments, ensuring that the company complies with all its obligations and avoiding possible penalties for errors or omissions.
2. Tax obligations of a newly created company
When starting a company in Spain, various tax obligations must be met, including:
- Registration in the business register: Using form 036 or 037, the start of economic activity must be reported to the Tax Agency.
- Periodic VAT returns: Submission of form 303 on a quarterly basis and form 390 for the annual summary.
- Withholdings and payments on account: Forms 111 and 190 for withholdings from employees and professionals.
- Corporation tax: Form 200 to declare the profits obtained by the company.
- Accounting books and annual accounts: Obligation to keep accounts in accordance with the General Accounting Plan and file annual accounts with the Commercial Registry.
These obligations may vary depending on the legal form of the company and its economic activity, which makes it advisable to seek specialised advice.
3. Benefits of having a tax advisor from the outset
3.1 Regulatory compliance and avoidance of penalties
The Spanish tax system is complex and constantly changing. A tax advisor stays up to date on legislative developments, ensuring that the company complies with all its obligations and avoiding possible penalties for errors or omissions.
3.2 Optimisation of the tax burden
A tax advisor can identify deductions, allowances and special tax regimes applicable to the company, which can translate into significant tax savings.
3.3 Saving time and resources
Delegating tax matters allows entrepreneurs to focus on developing their business, improving efficiency and productivity.
3.4 Strategic advice
Beyond tax obligations, an advisor can offer guidance on strategic decisions, such as choosing the most appropriate legal form, investment planning or international expansion.
4. Is it mandatory to hire a tax advisor?
In Spain, it is not mandatory to hire a tax advisor; however, given the complexities of the tax system and the associated responsibilities, it is highly recommended, especially for newly created companies that may not have previous experience in tax management.
Setting up a company involves taking on various responsibilities, with tax management being one of the most critical. Having a tax advisor from the outset not only facilitates compliance with legal obligations, but also contributes to the long-term success and sustainability of the business.
At Gutiérrez Pujadas & Partners, we offer tax advisory services tailored to the needs of each company, providing comprehensive support at all stages of the business cycle. If you are starting your business project, do not hesitate to contact us for the advice you need.