There are two types of limited company available in Spain:
The full rate of company tax in Spain is 32.5%, to be reduced to 30% from 2008 onwards. Companies with a turnover below 3 million Euros can benefit from a reduced rate as follows: - 25% for profits up to 120,202 Euros, 30% for profits above this.
Calculation of taxable income
The Starting point is net profit per accounts, calculated in accordance with the Plan General de Contabilidad. The tax year is from January to December every year.
Capital gains made by companies are taxable as part of profits.
Payment of Company Tax & Returns
All companies need to submit annual accounts to the Mercantile Registry (Registro Mercantil.
The company tax return must be filed within 6 months and 25 days after end of accounting period. Payment by instalments of company tax is in April, October and December. As a general rule, each instalment is 18% of the previous year's company tax liability.
A separate method of calculation applies to large companies whose turnover in the previous year exceeds a set limit.
This is just to give you a very brief insight into what a company may mean in Spain. You must always consult a professional accountant for more information.
Are you still doing equity release?..Here in france they could do with it .... There is only one bank that does it and the deal is rubbish
Rated: 3/5 (14th April 2010)