The taxes generated when investing in Spain

The taxes generated when investing in Spain

Given that are increasingly foreigners interested in investing in Spain, our tax lawyer in Spain, will explain the types of taxes that a company must fulfill.

Taxes will be state and municipal, spanish solicitors hired by the foreign investor must confirm all information required for each type of company, according to its work object.

State taxes are income tax (tax on income of natural persons), corporation tax and legal persons and VAT (value added tax) and municipal taxes are those levied by municipalities such as tax economic activity, the property tax, the tax on mechanical traction vehicle and goodwill. For these municipal taxes it is strictly necessary to hire the advice of a tax lawyer in Spain.

Spanish solicitors working in our office, report that the biggest problem of customers regarding payments is ignorance or the tendency to be confused with the times in which to meet each payment.

For example in the case of income tax the tax period is the calendar year, and accrued on 31 December each year. In the case of corporate tax and legal persons is according to the financial year of the company shall not exceed the year to make the payment. And the tax is a bit more complex or generates more work to spanish solicitors is VAT, because it is a tax instant accrual, which if is positive should enter in the treasure and if is negative shall be declared quarterly.

With respect to municipal taxes each client should consult with your tax lawyer in Spain because they are governed by the activity and physical space in which the entity operates.