When companies don’t use the appropriate tax planning, it can increase their tax burdens. Next to that, they risk of being penalized for going against the law. Get in contact for a quote, and let our dedicated tax advisor in Palma De Mallorca help you.

Your tax advisor in Palma De Mallorca

Our fundamental objective is to take care of your corporate tax burdens by advising you before, during, and after executing the proposed investment.

Retention models

Inheritance taxation

Real estate taxation

Bank proceedings, notaries, mercantile registries, land

Negotiations and appeal with H.M. revenue & customs.

Some tax aspects in Spain include

  • There are two major types of ‘limited companies’ in Spain – Public and Private limited companies.
  • To comply with all legal obligations, companies must ensure that their annual accounts are summited to its shareholders for approval within six months, starting from the end of the accounting period. The companies audit limit is six million euros and must submit annual records to the Registro Mercantile (Mercantile Registry).

  • The general tax rate of company tax is 25 percent. Still, there’s a lower tax rate for freshly formed companies – this is around 15 percent, which only applies to the first two years in which it eventually obtains a taxable profit.

  • Every company must file a tax return within six months and 25 days at the end of the accounting period. As a general rule, the company instalment tax happens in April, October, and December. The rate is 18 percent of the previous year’s tax liability.

  • The calculation of payable income begins with the net profit per account. It is calculated in compliance with the Plan General de Contabilidad, and depreciation must be within approved limits.

  • Goodwill amortization is allowed, and there’s no distinction between long and short term gains, as tax losses can be carried forward for about ten years.

  • The capital gains made by companies are taxable as part of the profits.

Contact us for comprehensive support

The notes provided above are intended as an eye-opener and should not be used as a guideline. Please contact Bufete Quadrant for professional advice, and we will be happy to help with any inquiries.

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