C ompanies in Spain are required to a set of formalities which includes tax compliance, accounting and statutory books and records.
Besides assisting you setting up a legal entity in Spain at Legaliaspain we can provide you with:
Tax Filing Services
Corporate Tax Returns in Spain (VAT, Income Tax) and Corporate Tax Advice
Accounting Services and Payroll
Accounting Outsourcing and Payroll Services
Advice on Spanish Regulatory Requirements
Corporate Statutory Book Records Filing
Record of Statutory Corporate Books and Records
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Corporate Tax Compliance, Accounting and Payroll
A ll limited companies in Spain are required to a minimum set of tax compliance, accounting and bookkeeping requirements.
Large companies have internal accounting and tax filing departments given the high amount of transactions that justify the need of having an in-house team to look after this part of the business. Smaller entities, start-ups and newborn companies, on the other hand, tend to externalize this process so they can focus on growing their core business in their initial stages.
At Legaliaspain we have a broad experience of over ten years advising startups and small to medium companies with an international component carrying out business in Spain. That means that we can assist any company filing taxes, handling payroll, complying with the accounting and bookkeeping obligations, plus our tax advisors will provide the needed assistance at any given time.
The very basic requirements for Spanish companies when it comes to tax compliance are:
Tax Filing (VAT, Corporate Income Tax, Payroll, etc.)
Companies, within their fiscal year which normally goes from 1st January to 31st December, must file their tax obligations with the Spanish tax office.
Filing VAT returns, even if the company has had no activity, is due every quarter and upon the year-end. In some cases, SME’s are also required to file monthly VAT returns.
Corporate Income Tax
An income tax return for the company revenue is due annually. The corporate tax rate in Spain is 25%, although newborn companies are generally taxed at a 15% tax rate for the first two tax periods in which they obtain profit.
Companies hiring employees are required to withhold a percentage on the salaries paid to their employees as well as paying social security contributions.
Companies in Spain are required to maintain an inventory ledger, balance sheet and a general ledger, and they must as well file its annual accounts with the companies registry registro mercantil including the company balance sheet, profit and loss and an annual report.
Failing to file the corporate annual accounts with the companies registry shall result in penalties to the company and the closing of the registry sheet of the company.
Company Statutory Book Records
All limited liability companies in Spain must keep record the statutory books and present them before the companies house registro mercantil within four (4) months from the closing of the fiscal year.
These books are:
- The minutes of meeting book which keeps record of all meetings of the company management;
- The register of shareholders book with id, domicile and nationality of the company shareholders;
- In case of a standalone company the book of agreements with the sole shareholder.
The above books must be filed electronically with the companies’ house registro mercantil.
Tax Compliance Services with Legaliaspain
- English speaking tax advisors and solicitors available at your disposal at all times
- Flat fees for taking care of all the corporate compliance, accounting records and bookkeeping
- Only registered professionals working in your tax return
- Complete assistance in other legal areas such as real estate, tax or litigation if needed throughout the process
- Over ten years experience advising both local and foreign companies corporate tax compliance
What our customers say about us
The professionals at Legaliaspain were an excellent choice for us. They completed our case with the highest standards providing all the information we needed at every stage.
They were also willing to walk the extra mile helping us with those very important loose ends we did not bear in mind. We would definitely recommend them.