An S.L. pays corporate tax on the profits it makes. New companies in Spain are subject to a reduced rate of 15%. However, this rate is limited to two specific tax periods:
- The first period in which the company earns profits.
- The period immediately following it, regardless of profit/loss.
For example, if the S.L. is incorporated on Dec. 20, 2024, the reduced rate applies through Dec. 31, 2025. However, if the S.L. is incorporated on January 1, 2025, then the reduced rate applies through December 31, 2026.
Registration as an Intra-community Operator
When you invoice goods or services to companies in other EU countries, it’s advisable to register as an intra-community operator. This way, you can shift the VAT liability to your customer, so you don’t have to calculate or include VAT on your invoice. Your customer is then responsible for declaring VAT in their own country, in accordance with EU regulations. You can read more about this here.