Skip to content 
Corporate Tax (Impuesto de Sociedades) in Spain is levied at a flat 25% on profit, while newly created companies enjoy a reduced 15% rate during their first two profitable years. This contrasts sharply with the progressive IRPF for autónomos, whose effective rate approaches 45-47% at higher income levels. However, the decision to incorporate an SL (Sociedad Limitada) or SA should consider more than just the tax rate: an SL requires full accounting, annual filings with the Commercial Registry, separate administrative reporting, and additional management costs. A company also provides limited liability for the founder and flexibility over the timing of dividend distributions (which are additionally taxed when paid out to an individual, at the 19-30% savings-base rate), whereas an autónomo’s profit flows directly into personal IRPF with no intermediate step.
