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New tax and social security measures


The Spanish Government has recently approved a battery of measures to enhance the business activity by reducing the tax cost and social security contributions associated to new ventures. One of the most relevant measures is the reduction of the Corporation Tax rate for new business ventures for two tax years. The tax rate has been reduced to 15 % for the first taxable income bracket (up to Eur 300.000) and the 20 % to the taxable income exceeding such figure. The reduction shall be applied the first two years that a business gets a positive taxable income. For individual’s star ups, the incentive consist in a reduction of the taxable income of 20 %, with the limit of Eur 20.000.

There are also several measures to reduce the social security cost of young (under 30) self-employed people and young unemployed first jobbers.