Setting up a business in Spain can offer various tax advantages for foreigners. Below are some of the tax benefits and considerations that may apply:
- Impatriate Regime: Spain has a special tax regime for posted workers, known as the impatriate regime, which allows non-resident foreigners to pay taxes only on their income earned in Spain over a six-year period. This can result in a reduced tax rate.
- Incentives for New Businesses: There are tax incentives for new businesses and entrepreneurs, such as deductions in Corporate Tax for startups that meet certain requirements, as well as bonuses on Social Security contributions.
- Investment Deductions: Companies can benefit from tax deductions for investments in R&D&I, which can result in a significant reduction in the tax burden.
- Free Trade Zone: In some areas of Spain, such as the Canary Islands, there are special tax regimes that offer corporate tax reductions and other benefits to encourage investment.
- Agreements to Avoid Double Taxation: Spain has agreements with numerous countries to avoid double taxation, which can result in more favorable tax treatment for income earned in Spain by foreigners.
- Value Added Tax (VAT): Depending on the nature of the business, there may be reduced VAT rates applicable to certain products and services.
- Tax Advice: It is advisable to have a tax advisor who can guide you on the best strategies to optimize the tax burden based on the particular situation of the business and the entrepreneur.
- Entrepreneur Support Programs: There are programs and aid at national and regional levels that can offer financing, training and resources for new entrepreneurs.
It is important to note that tax legislation may change and it is always advisable to consult with an expert or lawyer specializing in tax and business law in Spain to receive personalized and up-to-date advice.