How corporate tax works in Spain
Spanish-resident companies are generally taxed on worldwide profits. A Spanish permanent establishment of a foreign company is normally taxed on the profit attributable to that establishment, while non-residents without a permanent establishment are taxed under Non-Resident Income Tax on Spanish-source income.
The general corporate income-tax rate is 25%. For tax periods beginning in 2026, a qualifying micro-enterprise with prior-year net turnover below EUR 1 million applies 19% to the first EUR 50,000 of taxable profit and 21% to the excess, while a qualifying small entity applies 23%. Group turnover and equity-company exclusions matter.
Newly created entities carrying on a qualifying economic activity and qualifying start-ups can generally use a 15% rate in the first positive-tax-base period and the following period, unless another lower rate applies. Credit institutions and certain hydrocarbon businesses can face 30%.
Resident corporate shareholders can generally exclude 95% of qualifying dividends and positive share-sale gains where the participation and holding requirements are met. Spain also offers R&D, technological-innovation, film and Canary Islands incentives, but substance and documentation are central.
Spain implemented OECD Pillar Two through Law 7/2024. A qualifying multinational or large domestic group with consolidated revenue of at least EUR 750 million in at least two of the previous four years is subject to a jurisdictional 15% minimum-tax framework and possible top-up tax.
Operating companies also need to model VAT, payroll social security, local business and property taxes, transfer pricing, withholding, digital-services tax and the 0.2% financial-transaction tax for qualifying large listed-share acquisitions.
Tax rates at a glance
- Corporate tax
- 25%Headline
- 2026 micro-enterprise first EUR 50,000
- 19%
- 2026 micro-enterprise remainder
- 21%
- 2026 small entities
- 23%
- New companies and start-ups
- 15%
- Credit institutions and certain hydrocarbons
- 30%
- Canary Islands ZEC regime
- 4%
- Pillar Two minimum
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersOperating companiesHolding companiesCross-border groupsInvestors
Watch out for
- The 25% headline rate is not an all-in operating cost. Payroll, VAT, local taxes, financial transaction tax, withholding and non-deductible expenses can materially change the effective result.
- The 2026 micro and small-company rates are not available just because a business is small in everyday language. Turnover, group aggregation, activity and equity-company rules must be checked.
- The 95% participation exemption is conditional and leaves a 5% add-back. It is also not a substitute for transfer-pricing, CFC, anti-abuse and beneficial-ownership analysis.
- The Canary Islands ZEC rate and other regional incentives require local substance, qualifying activities, jobs, records and limits. A registration address alone is not enough.
- Pillar Two is separate from the ordinary 25% rate. Large groups need jurisdictional effective-rate calculations and may have Spanish top-up, information-return and reporting obligations.
Frequently asked questions
What is the corporate tax rate in Spain?
The general Spanish corporate income-tax rate is 25%. In 2026, qualifying micro-enterprises can use 19% on the first EUR 50,000 and 21% on the remainder, qualifying small entities use 23%, and new companies or start-ups can use 15% if the conditions are met.
Does Spain have a low-tax company regime?
Some special regimes exist, including the 4% Canary Islands ZEC regime and start-up incentives, but they require qualifying activity, local substance, jobs, documentation and other conditions. They are not automatic substitutes for ordinary Spanish residence and management rules.
Does Spain apply Pillar Two?
Yes. Law 7/2024 implements a 15% global minimum-tax framework for qualifying multinational and large domestic groups with consolidated revenue of at least EUR 750 million in at least two of the previous four years.