7 January, 2015

Tax sales in the Spanish Tax Reform

Share This:

Sales season has started in Spain. And, we are not only referring to consumer products but also to Spanish Corporation tax.

A general reduction of the nominal Corporate income tax rate brings about the possibility to reduce company taxation and taxable profits by allocating them to specific reserves.

Although not exempt from criticism, the Spanish tax reforms brings hopeful news for the coming year. Discover how you can reduce company taxation.

✔The progressive reduction of the nominal Corporate income tax rate will permit moving from a 30 per cent tax rate to a 25%. In fiscal year 2015, the rate will be of 28% and it will reduce to 25% in fiscal year 2016.

A reduction of five percentage points that situates Spain in a level of taxation substantially below the countries of our environment.

✔Besides, two new tax incentives related to the companies’ equity have been introduced: one applying to all Corporate tax payers and a second one applying to reduced- size companies.

✔ The capitalization reserve aims at maximising companies’ capitalization through their equity increase. It results in the non-taxation of the part of the profits, (10% of the equity increase and up to 10% of the taxable profits) allocated in a non-distributable reserve, with no investment requirement in any specific asset.

✔ A levelling reserve: an incentive for small-sized companies that permits reducing taxation in a given year with tax losses to be generated in the five subsequent years, anticipating their application.

✔ The combined application of the above measures offers a real opportunity to increase profitability of Spanish investments that is worth noting and that can become a decisive factor to locate further investments in Spain.

Share This:


Pedro Teixeira 8, planta 4ª, 28020
T+34 91 192 21 22


General Mitre 28-30 08017.
T+34 93 363 65 10


Based in Barcelona and Madrid. Englobally is our Latin American business partner established in Santiago de Chile.

We are also part of Englobally Group, an international association of independent accounting and advisory firms that provide a one-stop shop managed solution for accounting, payroll and HR needs, with member firms in over 25 countries and associates working in many others. Many fast growing technology and lifescience businesses find their international services invaluable. Companies in many other sectors are attracted by the close and supportive way Englobally Group works.




Please type the code below