The main incentive programmes offer both preferential grants and loans for business projects in the following: R&D and innovation, training, energy efficiency, investment in fixed assets and job creation with further incentives available for international activities.
Corporate benefits under the Spanish tax system
Corporate benefits under the Spanish tax system include R&D activities (between 25% and 59%) 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 Regime for Spanish Holding Companies
Tax Regime for Spanish Holding Companies (“ETVEs”) is a special Corporate Income Tax Act regime that applies to holding companies owning shares in non-resident entities. It is one of the most favourable tax regimes for holding companies and encourages international groups to establish headquarters and manage international shareholdings from Spain.
The main advantages of this regime are that certain income derived from non-resident companies can benefit from being exempt on dividends and capital gains derived by the ETVE, and from repatriating dividends to non-resident shareholders of the ETVE without being subject to withholding in Spain, when specific requirements are met.