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When doing business in Spain, companies enter a diverse and resilient economy built on strong industries such as tourism, food production, textiles, technology, banking and energy. Spain continues to channel investment toward high-growth areas including renewable energies, healthcare, telecommunications and advanced technology, creating opportunities for businesses looking to expand in one of Europe’s largest and most interconnected markets.
Spain’s regulatory framework provides clear procedures for company formation, corporate and VAT obligations and various national and regional taxes. Employment rules define structured contract types and transparent requirements for both EU and non-EU workers, while organisations and individuals operate within a well-established personal tax and social security system that applies across multiple income and activity categories.
Together, these strengths make Spain a compelling choice for companies seeking long-term growth and stability within the European Union. This infographic highlights the key considerations to review before entering or expanding on the Spanish market.
Our free eBook on international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 17 countries. Breeze through the specifics of doing business across different markets and compare key data that may be crucial for your ambitions of international expansion.
Most common industries:
Industries favoured by investment incentives:
Most common legal form of business: Limited Liability Company
Required no. of shareholders: at least 2
Required no. of directors: at least 1
Official company registers: www.registradores.org/el-colegio/registro-mercantil
*Reduced rate applies for newly created companies
Who are tax residents: companies that have been incorporated in accordance with Spanish law or have registered office in Spain and/or their ‘effective’ head office is in Spain
Tax period: Usually calendar year
Due date for CIT return: within 25 calendar days following the six months subsequent to the end of the tax year
VAT registration: Spain does not have a VAT registration threshold so both resident and non-resident taxpayers must register for VAT in the country before making taxable supplies.
Other applicable taxes:
In Spain, there are also environmental taxes such as the tax on the production and storage of nuclear fuel and radioactive waste; tax on the value of gas, oil and condensates extraction; tax on fluorinated greenhouse gases; and tax on the production of electricity.
Who is entitled to work in Spain:
Types of employment contract:
*19% for income up to EUR 12,450, 24% for income between EUR 12,450 and EUR 20,200, 30% for income between EUR 20,200 and EUR 35,200, 37% for income between EUR 35,200 and EUR 60,000, 45% for income between EUR 60,000 and EUR 300,000, 47% for income above EUR 300,000
Who are tax residents: Individuals who spend more than 183 days in Spain during a calendar year in Spanish territory, or have their main economic activity or interest in Spain
Tax period: calendar year
Due date for PIT return: June 30 of the following fiscal year
Taxable incomes in Spain: income earned from employment, self-employment, rental properties, capital gains, and savings
*Plus a variable rate for occupational accidents, for instance 1.50% office work
** The maximum base for calculation is €4,909.50. In 2025 an additional “solidarity contribution” has been introduced for higher salaries.
Doing business in Spain can be simple and rewarding with the right guidance. The Spanish market offers many possibilities and some distinct challenges, but with support from skilled professionals, you can handle local requirements confidently. Whether you are launching a new venture or aiming to expand your established company, our team of specialists in Spain is ready to help you develop business strategies that fit your needs.
We deliver a full range of advisory and BPO services in Spain to help you manage your tax, legal, and corporate responsibilities. Our experts also support your accounting, financial reporting, payroll, and HR activities to ensure everything is accurate and meets Spanish laws and standards.
Market entry support | Tax advisory and compliance | Legal advisory | Accounting and reporting | Accounting portal | Payroll outsourcing | Payroll portal | Attendance portal | HR administration | Transaction advisory | Transfer pricing | Company registration | Corporate and secretarial services | ESG reporting | Online consulting | Fixed service packages