SPAIN Law and Practice Contributed by: Raúl Salas and Elena Ferrer-Sama, RocaJunyent
The aforementioned rates may change from one region to another, as regional authorities have com - petence to increase those tax rates. Tax on Certain Digital Services The Tax on Certain Digital Services (known as the “Google tax”) is an indirect tax that applies to the provision of certain digital services involving users located in Spain. This tax applies to companies with a worldwide turnover of more than EUR750 million and to Spanish income of more than EUR3 million. The tax rate amounts to 3% of income resulting from rendering digital services as defined in the law. The taxable persons are the companies that provide digi - tal services as defined in the law and that exceed the The Tax on Financial Transactions (TFT) is an indirect tax that applies to the acquisition of shares in traded Spanish companies when they have a market capi - talisation above EUR1 billion on December 1st of the year prior to the acquisition. There are numerous cases of exemption, including for: • acquisition of shares issued in the primary market; • acquisition of shares acquired as a result of the execution of a takeover bid; • acquisition of shares derived from transactions between entities of the same group; • acquisition of shares carried out within an opera - tion to which the Special Regime for Mergers applies (Chapter VII, Title VII of the CIT Law); • acquisitions of treasury stock; and • acquisitions in execution of a stock option plan by employees. above-mentioned thresholds. Tax on Financial Transactions The tax rate amounts to 0.2% of the consideration paid exclusively for the shares, not including the expenses related to the transaction. The liable person is the intermediary acting in the operation, while the taxable person is the acquirer. Stamp Tax Stamp tax (document duties and registration fees) is levied on notarial instruments and records document -
ing transactions that need to be registered in public registries. The tax rates range from 0.5% to 1.5% of the operation value. Tax on the Increase in the Value of Urban Land The tax on the increase in the value of urban land is a local tax applied by local councils. This tax applies when urban real estate is transferred and when there is a gain for the transferor. Tax on Non-Reusable Plastic Packaging As of January 2023, a new tax on non-reusable pack - aging entered into force in Spain. This tax is due on imports and intra-community acquisitions, for an amount of EUR0.45 per kilogram of non-recycled plastic in non-reusable packaging. 2.9 Other Notable Taxes Incorporated businesses are also subject to the fol - lowing notable taxes. Tax on Economic Activities The Tax on Economic Activities ( Impuesto sobre las Actividades Económicas , or IAE) is a direct tax. The IAE’s taxable event is the mere exercise – on Spanish territory – of business, professional or artistic activi - ties. Local Property Tax The Local Property Tax ( Impuesto sobre Bienes Inm- uebles , or IBI) is a direct municipal tax on the value of real estate. It is periodic, real and mandatory in all councils. The rate of taxation will vary depending on the city council, ranging from 0.3% to 1.1% of the cadastral value. Pillar 2 As of 2024, Pillar Two has been implemented in Spain pursuant to Law 7/2024, providing for a top-up tax at a minimum effective rate of 15%.
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