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Spanish VAT, transfer and documentary tax

In Spain there are two basic indirect taxes: the Value Added Tax (“Impuesto al valor añadido”) and the Transfer Tax (“Impuesto sobre Transmisiones Patrimoniales” –ITP-) divided in the Stamp Tax (“Actos Jurídicos Documentados”-AJD-) the Corporate Operations Tax (“Operaciones Societarias”-OS-) and the Property Transfer Tax (“Transmisiones Patrimoniales Onerosas”-TPO).

 

THE VALUE ADDED TAX

The Value Added Tax is a tax established and homologated in general terms in the European Union. We give support to our national and international clients since they initiate operations as entrepreneurs. We accompany the individuals or the companies in the registration before the Tax Agency and we help them with the fulfillment of their periodical obligations.

Our guidance covers also all kind of transactions as the supply of goods, services, imports, exports, and intra community transactions across the European Union.

The transfer taxes are managed and collected by the local authorities (Comunidades Autónomas) so the tax rates can have little differences.

TPO is applicable for all the transfers made for non entrepreneurs.

The stamp tax -AJD- has different rates, but the general one is 1% of the purchase price, in most Spanish regions.

 

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THE CORPORATE OPERATIONS TAX -OS-

The Corporate Operations Tax -OS- is exempted for the incorporation, capital increase or for any contribution with no capital increase. The reduction of capital and the liquidation of a company is levied with 1% of the transaction.

However, even if the OS is exempted in most of the cases, the tax return most be filed before the Local Tax Authorities.