Tax system

Taxes that favour both companies and individuals mean business goes smoother here.


A Corporate Income Tax with many favourable rebates (IS)

The Corporate Income Tax general rate is 28% (25% for SMEs) and can be noticeably reduced when certain legally established tax benefits, such as those affecting R&D and innovation, are applied.

Take advantage of the Non-resident tax system

Available income of individuals is taxed according to a progressive rate scale ranging from 22% to 49%. Expatriate workers can choose between the general tax system or the non-resident tax system (IRNR) at the fixed rate of 20% for dividends, interest and capital gains. Income generated in other countries is not subject to the tax on this Spanish income.

Value Added Tax (VAT)

Three different rates are applied: 4%, 10% or 21%.

Further information

Please contact us for further information regarding work permits, setting up a business fiscal and labour legislation, environmental issues or any other subject related to foreign investment and not addressed here. 


Passeig de Gràcia, 129
08008 BARCELONA
Tel: (+34) 93 4767287
catalonia@catalonia.com