Currently, Company Tax stands at 25%, Dividend Tax lies between 19% and 23% and Income Tax is progressive up to 45%. Reductions and Bonifications may apply. The normal VAT rate applied is 21% with reduced rates of 10% and 4% depending on the type of products or services concerned.
If you are in Spain more than 183 days a year or your economical or family nucleus resides in the country, you are considered a fiscal resident. In this case, you will need to declare and pay taxes over your worldwide income and assets, and you need to file a Spanish tax declaration. However, special rules may apply.
A non-resident might have to pay taxes for income received or assets located in the country. This taxation will depend on the Double Taxation Agreement between Spain and the country of residence and may include local Real Estate Tax, Non-Resident Income Tax and Net Wealth Tax. Softer rules apply for EU residents as compared to the rest of the world.
The “Beckham Law” is a Spanish tax law that was passed in 2005. With the Beckham Law, an expat can apply to be taxed according to a special regime applicable to employees displaced to work in Spain, which means they will only be taxed on income they earn in Spain, subject to a flat 24% tax rate.