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europe · EUR · EU member

Spain

EU member with a 25% standard corporate income tax, a reduced 15% rate for newly created and qualifying start-up companies, 21% VAT, and a designated start-up regime under Law 28/2022.

Corporate tax25%
VAT21%
StripeAvailable
WiseAvailable

Scorecard

All scores are derived from raw country facts via transparent methodologies — see the individual ranking pages for the underlying weights.

Founder friendliness

53 / 100

SaaS friendliness

75 / 100

Remote business

71 / 100

Tax simplicity

50 / 100

Banking access

50 / 100

Taxation

Standard CIT rate is 25%. Newly created companies qualify for a 15% rate in the first two profitable tax periods (excluding equity companies and group members). Certified start-ups under Law 28/2022 access 15% for the first four profitable periods. SMEs receive progressive reductions from 24% (2025) toward 21% (2028). Micro-enterprises with net turnover below EUR 1 million access tiered rates of 21%/22% (2025).

VAT

Standard IVA rate is 21%. Reduced rates of 10% and super-reduced 4% apply to designated categories. EU VAT rules apply for cross-border supply.

Company formation

Founders typically incorporate as an SL (Sociedad Limitada) with a EUR 3,000 minimum share capital. The process involves obtaining NIE (foreigner identification), reserving a company name, depositing share capital, signing the deed before a notary, and registering with the Registro Mercantil. Total elapsed time is typically two to six weeks.

Banking & payments

Major Spanish banks (BBVA, Santander, CaixaBank, Sabadell) accept business clients but generally require an in-person visit for non-resident directors. EMIs such as Wise Business and N26 Business are commonly used for everyday operations.

SaaS friendliness

Stripe is fully supported for Spanish companies. EU VAT OSS registration streamlines cross-border B2C digital services. The Beckham Law regime provides a 24% flat personal-income-tax option for inbound qualifying employees.

Hiring

Employment is governed by the Estatuto de los Trabajadores. Employer-side Seguridad Social contributions add roughly 30% on top of gross salary. Most permanent contracts (contrato indefinido) carry strong job-security protections.

Compliance

Annual accounts must be deposited with the Mercantile Register. VAT returns are filed quarterly (monthly for large taxpayers). The IS (corporate tax) return is filed within 25 days of the six-month period after fiscal year end.

Startup ecosystem

Madrid and Barcelona host the densest tech startup ecosystems, with growing hubs in Valencia and Málaga. ENISA loans, ICO programmes, and the Beckham Law regime are commonly used by founders structuring around Spain.

Pros

  • Reduced 15% CIT rate for newly created qualifying companies in their first two profitable tax periods (extended for certified start-ups under Law 28/2022)
  • EU single market access and an active startup ecosystem in Madrid and Barcelona
  • Special economic regime in the Canary Islands (ZEC) offers a 4% reduced rate for qualifying activities

Cons

  • Formation requires NIE/NIF registration, notary involvement, and Mercantile Register filing — typically several weeks end-to-end
  • Employer-side Seguridad Social contributions are heavy on top of gross salary
  • Most administrative procedures are conducted in Spanish

Best for

  • Founders qualifying under the Start-up Law (Ley 28/2022) for the 15% reduced CIT
  • Companies serving Iberian and Latin American markets from an EU base
  • Teams that benefit from access to Spain's growing tech-talent pool

Not ideal for

  • Founders who need a fully online formation completed within days
  • Founders who want to avoid notary and Mercantile Register paperwork

Related

Sources

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