The main incentive programmes offer both preferential grants and loans for business projects in the following R&D and innovation, training, energy efficiency, renewable energy, investment in fixed assets and job creation with further incentives available for international and export activities.
Corporate benefits under the Spanish tax system
Corporate benefits under the Spanish tax system include R&D activities (between 25% and 51%), environmental investments (8%) and technological innovations (12%).
Spain has a large number of double taxation treaties, especially with Latin American countries, which makes it an ideal jurisdiction for investments in Latin America.
Up to 59% in tax rebates for R+D+I
Spain and Catalonia offer one of the best tax deduction systems for research, development and technological innovation activities for companies in Europe.
Tax benefits for holding companies
The only requirement for foreign holding companies (entities that hold foreign securities, ETVE) to benefit from ETVE tax system is the incorporation of a company in Spain and the provision of securities from the companies in which it has a holding (when they represent a minimum holding of 5% or less and have held the shares for one year, but with a cost in excess of € 6 million, and providing that the companies in which it has a holding conduct business).
ETVEs need not pay tax on dividends received from non-resident companies in which it has a holding and its members need not pay on the sums distributed by the ETVE. They are also allowed:
- Exemption from corporate income tax on dividends and capital gains earned from foreign subsidiaries,
- Withholding tax exemption on dividends from foreign subsidiaries distributed outside Spain. An exemption is also applied to the tax on capital gains derived from the transfer of Spanish company shares.