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Generic Tax Name Corporate income tax - Non-residents income tax
Tax name in the national language Impuesto sobre la Renta de No Residentes
Tax name in English Non residents income tax (corporations)
Member State ES-Spain
Tax in force since 1999/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Royal Decree Law 5/2004 of 5 March, passing the amended text of the Non-Resident Income Tax Law (Official Gazette of 12 March); Royal Decree 1776/2004 of 30 July, passing the implementing regulation.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope Spain.
 
Taxpayers
Domestic-source income of non-resident entities is Taxed
Not Taxed
Comments

Companies deriving income in Spain whether or not through a permanent establishment.

 
Tax object and basis of assessment
As general rule, taxable income under corporate income tax includes also








Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Comments

Revenues obtained within the Spanish territory by the taxpayer.

 

In the case of taxpayers with a permanent establishment, it is determined in accordance with the corporation tax rules, with some special features. In the case of taxpayers without a permanent establishment, it is constituted by the full sum accrued, without deducting any expense, although there are some exceptions.

 
Deductions, Allowances, Credits, Exemptions
Valuation of inventory
System First-in first-out (FIFO)
Last-in first-out (LIFO)
Average cost
Specific identification (unit method)

Comments

Depreciation rules
 
Buildings
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate
 
Movable (tangible) assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate
 
Movable fixed assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate
 
Intangible assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate
 
Land (if any)
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate


Comments

Are there limits to interest deductions? Yes No
If yes:
Definition of deduction limit

Comments

Is there an Allowance for Corporate Equity? Yes No
If yes:
Notional rate applied for allowance

Comments

Losses
Loss carry-forward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 
Loss carry-backward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 

Comments


Comments

Deductions: permanent establishments may apply the deductions provided for in the corporation tax rules.

 

Exemptions:

  • interest and capital gains from movable properties derived by residents in another Member State of the European Union (without permanent establishment), with two exceptions:
    • In the case of gains arising from the transfer of shares or other rights in a company whose assets mainly consist of real estate located in Spain;
    • In the case of non-residents, for cases where the transfer do not qualify for the exemption provided in Article 21 of the CIT Law
  • income derived from Public Debt (without permanent establishment);
  • income and capital gains on shares issued in Spain by non residents (without permanent establishment);
  • income from non resident accounts held by non residents (without permanent establishment);
  • profits distributed by subsidiaries resident in Spain to their parent companies resident in another Member State of the European Union, as long as certain conditions are met;
  • income derived from the transfer of securities or the redemption of units in investment funds through any official Spanish secondary market, by entities resident in a jurisdiction with which Spain has signed a DTA (or TIEA) enabling for the exchange of information, except when this income is obtained through a tax haven;
  • income from leasing, letting or transmission of containers or ships and aircrafts, used in the maritime or air international navigation;
  • dividends and shares in profits obtained by pension funds equivalent the ones regulated by the Texto Refundido de la Ley de Planes y Fondos de pensiones (R.D. Legislativo 1/2002, de 29 de noviembre), that are residents in another EU Member State or by permanent establishments of the latter located in another EU Member State;
  • royalties satisfied to an associated company in another Member State of the UE or to a permanent establishment in the UE of an associated company in another Member State of the UE, which satisfy certain requirements.
 
Rate(s) Structure
Nominal corporate income tax rate Rate: 24.00 %

Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate: 24.00 %


Comments

Tax Rates:

  • general: 24 %. 20% for EU/EEA residents with which there is an effective exchange of tax information
  • income from reinsurance transactions: 1.5%;
  • shipping companies resident abroad whose ships or aircraft arrive to the Spanish territory: 4 %;
  • Income derived trough a permanent establishment by a corporaton is taxed under the Spanish CIT rates accordingly.
  • any income derived from shares, capital gains, dividends and other income derived from the participation in a company, as well as interest and any other income from the transfer of own capital to third parties, will be taxed at the rate of 20%.

Special tax rate for SMEs
Special tax rates apply to SMEs: Yes No
If yes:
Nominal corporate income tax rate Rate:
Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate:


Comments
 
International aspects
Treaty countries Non-treaty countries
 
Repatriated profits are taxed according to the following system Exemption system Exemption system
Tax credit Tax credit
Deduction Deduction
 
Interest received is taxed Yes No Yes No
Tax rate on interest received
Outgoing dividends withholding tax
Outgoing interest payments withholding tax
 
Foreign losses can be set-off Yes No Yes No
If yes:
Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
 
Loss carry-forward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Loss carry-backward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Controlled foreign company (CFC-)rules exist? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Threshold for capital or voting power held directly or indirectly by resident in non-resident company
CFC-rules apply if foreign tax rate is lower than
CFC-rules apply for passive income only? Yes No Yes No

Comments   Treaty countries

Comments   Non-treaty countries
 
Measures against profit shifting
 
Do Thin Capitalization (TC) rules exist? Yes No
If yes:
Date of first introduction
Introduced as Explicit TC law
Part of CIT law
Test for TC Ratio
Arm's length
If ratio
Value of numerical ratio:
Definition numerator
Definition denominator
 
Debt considered for test Internal
Internal and external
TC depends on shareholding? Yes No
Substantial shareholding threshold
 
Type of shareholding Direct
Indirect
Automatic remedy Yes No
Remedy Non-deductibility of interest
Reclassification as dividend
 
Rules apply to All companies
Foreign companies
Non-EU companies
Transfer pricing rules exists? Yes No
If yes:
Arm’s length principle applied? Yes No
 
Remedy Fee
Tax base increase
 
Tax due date

 
Tax collector

Tax collector: Taxpayers with a permanent establishment in Spain must declare and settle the tax annually within six months after the end of the assessment period. Taxpayers without a permanent establishment must declare and settle the tax within the month following that of the taxable event. However, it is not compulsory to file a return when the tax has been withheld at source.

 
Special features

Special features: The beneficiary is the Central Administration, except in the Autonomous Communities of Navarre and the Basque Country, where the relevant regional authorities are responsible for the administration and collection of the tax in accordance with the national tax law, with some special features.

When the taxpayer is resident in a country that has concluded a Double Taxation Agreement with Spain, the provisions of said agreement apply. 

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51m (d51a + d51c1)

Comments

Revenue data are included in the Personal income tax