International tax solutions in Spain
Effectively managing the complexities of international tax is essential for businesses operating globally. In Spain, it is important to have a thorough understanding of local regulations and international tax treaties to handle cross-border tax obligations. Our methodology aims to equip businesses with the confidence to navigate these challenges, ensuring they remain compliant while enhancing their international tax strategies. We prioritize precision and strategic insight, allowing companies to fulfill their tax responsibilities efficiently while taking advantage of opportunities for cross-border tax efficiency.
International tax rate
International taxation in Spain includes corporate income tax, personal income tax, VAT, and various other taxes. Companies that are residents are taxed on their global income, whereas non-resident companies are taxed only on income sourced from Spain. Non-residents might enjoy lower tax rates due to international agreements. The standard corporate income tax (CIT) rate in Spain stands at 25%, but different rates can apply: small businesses with revenue under EUR 1 million face a 23% rate, newly established companies might be taxed at a 15% rate if certain criteria are met, and banks are subject to a 30% tax. There is a branch remittance tax set at 19%. Additionally, individual income tax rates in Spain can reach as high as 47%, and there is a standard VAT rate of 21%.
Our international tax services
We provide a wide range of international tax services aimed at helping businesses navigate the challenges of cross-border taxation in Spain. Our aim is to ensure complete compliance while improving your global tax standing, enabling you to concentrate on growing your international operations. Our offerings encompass:
Cross-border tax compliance
Our cross-border tax compliance services guarantee that your international tax submissions are precise and submitted on time, adhering to the tax laws of Spain as well as those of other countries. We assist you in navigating the requirements for reporting, documentation, and filing timelines across various jurisdictions. This service minimizes the risk of penalties and ensures that your business remains compliant with international tax regulations at all times.
Transfer pricing advisory
We offer specialized Transfer Pricing Advisory services to assist your business in setting up and documenting pricing strategies for transactions involving related entities across different countries. Our team aids in the creation of transfer pricing policies that adhere to Spain’s regulations and OECD guidelines, reducing the likelihood of disputes and penalties. Additionally, we perform benchmarking studies and prepare transfer pricing documentation to reinforce your pricing arrangements, making certain they meet both local and international standards.
International tax planning
We specialize in international tax planning services aimed at creating strategies that enhance your global tax situation. By collaborating closely with you, we can pinpoint and leverage tax treaties, credits, deductions, and exemptions to lower your total tax liability. Additionally, we offer advice on organizing your international operations to decrease the risks associated with permanent establishment and other international tax issues, ensuring that your global tax approach supports your overall business goals.
Tax treaty analysis and optimization
We provide targeted tax treaty analysis and optimization services to assist you in maximizing the benefits of Spain’s double taxation agreements (DTAs). Our experts examine the relevant treaties to uncover ways to lower withholding taxes, prevent double taxation, and take advantage of treaty benefits. This service is especially beneficial for companies involved in international investments, financing, and supply chain operations.
Foreign tax credit management
Our services for managing foreign tax credits help companies optimize their use of these credits to prevent double taxation on income earned overseas. We offer advice on how to claim credits for taxes paid in different jurisdictions, ensuring your business fully takes advantage of these credits while staying compliant with Spanish tax regulations. This approach reduces your total global tax liability and enhances your cash flow.
International tax system
Grasping the intricacies of the international tax system as it pertains to Spain is crucial for companies engaged in cross-border operations. Our knowledge offers you an in-depth understanding of the regulations surrounding international taxation, including the effects of worldwide tax reforms like the OECD’s BEPS initiatives. We assist you in overcoming the hurdles of global tax compliance and offer strategic advice to improve your international tax effectiveness.
Contact us
For additional information regarding our international tax services or to talk about how we can help your business address cross-border tax issues, feel free to contact us.
Disclaimer
Tax laws and regulations are continually evolving and can differ depending on personal situations. The information given here serves as general guidance and may not represent the latest updates. It is strongly advised to seek advice from a qualified tax professional for specific and current recommendations tailored to your circumstances.