Spain Corporate Tax Cuts: How Rates Decline from 2025 to 2029

There are no changes for companies that have an income over 10 million euros. These companies will keep being taxed at 25%.

But there will be significant reduction on the rates for smaller companies.

A.- Companies with income smaller than 10 million €, tax rate will reduce 1% every year from 2025 to 2029. Since 2029 will keep at a steady rate of 20%.

B.- MicroPYMES (income smaller than 1 millon de €). Reduction on tax rate will be faster an d higher, keeping since 2027 on 17% and 20%.

C. Newly created entities. No changes; they continue to be taxed at 15% for the first two years in which they are profitable. It is essential that the partners have not previously carried out this activity, either as self-employed individuals or with another company.