The approval of Law 7/2024 has brought significant changes in the fiscal framework in Spain, particularly regarding the Corporate Tax (IS). These changes are designed to enhance the competitiveness of companies and promote sustainable economic growth.
For the fiscal year 2024, the corporate tax rates have remained largely consistent compared to previous years. The general rate remains at 25%. Likewise, Small and Medium-sized Enterprises (SMEs) will continue to apply a tax rate of 25%, and micro-enterprises, entities whose net turnover of the preceding fiscal year is less than 1 million euros, will apply a reduced tax rate of 23%. Additionally, the 15% rate for newly created entities is maintained.
The changes gain special significance starting from the fiscal year 2025. Law 7/2024 implements changes in the corporate tax rates, aiming to progressively reduce the tax burden on SMEs and micro-enterprises:
- General Rate: The general corporate tax rate remains at 25%.
- SMEs: For entities whose net turnover of the preceding fiscal year is less than 10 million euros, the tax rate will progressively reduce each fiscal year as follows:-
- 2025: 24%
- 2026: 23%
- 2027: 22%
- 2028: 21%
- 2029 onwards: 20%.
- Micro-enterprises: For entities whose net turnover of the preceding fiscal year is less than 1 million euros, the tax rate will be progressive:
- 2025: 21% for the first 50,000 euros of taxable income and 22% for the remainder.
- 2026: 19% for the first 50,000 euros of taxable income and 21% for the remainder.
- 2027: 17% for the first 50,000 euros of taxable income and 20% for the remainder.
As a result, it can be observed that in the following fiscal periods, there is a reduction in tax rates, aiming to improve the competitiveness of companies and promote sustainable economic growth.
If you need further information, our firm will be pleased to provide you with the best advice.
Carmen Moya López