New Taxes in Spain 2023
New Taxes in Spain 2023: What You Need to Know
This year, Spain is implementing several new taxes, including a minimum tax of 15% for multinationals with an annual billing of more than 750 million euros, and a new Solidarity Tax on wealth for those with assets and rights exceeding three million euros. Additionally, the Corporate Tax rate is being reduced for entities with business below one million euros, but there are also increases in taxes for large savings and capital income. Here's what you need to know.
Spain's New Taxes in 2023: An Overview
Spain has implemented several new taxes in 2023 that will impact individuals and companies alike. Here's a breakdown of what's changed:
- Solidarity Tax (Wealth Tax): The Solidarity Tax is a supplementary tax on the Wealth Tax for those with assets and rights exceeding three million euros. Only assets that haven't been taxed by the Autonomous Community will be taken as the taxable base. This new tax modification includes the taxation of participations in non-resident entities whose assets are directly or indirectly constituted by at least 50% of real estate located in Spanish territory. The Spanish government estimates that it will collect 1,500 million euros annually with this tax.
- Minimum Corporate Tax: Multinationals with an annual billing of more than 750 million euros must pay a minimum tax of 15%. In the case of companies, for the year 2023, the possibility of compensating losses of the subsidiaries of large consolidated groups is limited to 50%.
- Reduction of Corporate Tax: The rate of Corporate Tax is being reduced from 25% to 23% for entities with business below one million euros in the collection period immediately preceding.
- Increase in Taxes for Large Savings and Capital Income: The rate of taxation for large savings and capital income is increasing by one point, from 26% to 27%. Taxable bases above 200,000 euros (and up to 300,000 euros) are only hardened by at least one point. A new range for taxable bases from 300,000 euros has been created, which will be taxed at 28%.
Conclusion
It's important to understand the new tax laws in Spain in 2023, as they will affect individuals and companies with certain income levels and assets. By being aware of the new regulations, taxpayers can better plan and organize their finances to comply with the new tax requirements. At Datapres Solutions, we offer services that comply with the strictest legality of the jurisdictions where we operate, and we are happy to assist with any questions or concerns regarding the new tax laws in Spain.