First urgent measures only for SMEs
In connection with the coronavirus emergency, the Spanish authorities have imposed the following tax and social security measures. Please note: more measures are expected to be added in the coming days and weeks.
Deferral of SME taxes
Tax payments for which tax returns must be filed from May 30, 2020 can be deferred for 6 months under certain conditions.
This applies to payroll and professional taxes, VAT and corporate tax.
For the time being, the measure only applies to SMEs. In order to make use of the postponement, it is a requirement that the turnover in 2019 did not exceed 6 million euros (exactly: 6,010,121.04 euros).
Furthermore, the tax amount can’t exceed 30,000 euros. If these requirements are met, postponement can be granted and no guarantees need to be given.
No default interest will be charged during the first 3 months of the postponement.
Employee with the virus?
In addition, the government has decided that the quarantine of an employee as a result of infection with the virus COVID-19 is considered to be an industrial accident.
The duration of the ‘accident’ will be decided by the doctor. The employee can only return to work after obtaining permission from a medical specialist.
Hospitality and tourism sector
Companies that are active directly or indirectly (for example catering) in tourism and that are normally active during the months of February, March, April, May and June can get a discount (of 50%) on social security contributions.
To be able to use this as a condition that all employees must be active (a different law applies for the Canary Islands and Balearic Islands).
Publication of additional measures
Additional measures are expected to be announced by the Spanish government on Tuesday, March 17.
We will report those measurements as soon as we know more.
Do you want more information about this post or about taxes in Spain? Read below what you can download for free or ask us your question without obligation.
Brochure Tax Rates Spain 2019
Download free and without any obligation our brochure Tax Rates 2019, with the current tax rates for companies, individuals and real estate. A ‘must have’ for advisers who have clients with business, family or a holiday home in Spain.
Best deal > Free alert service
We offer our clients, advisors and visitors of this website the possibility a free alert service. No costs and no obligations. We will inform about deadlines for tax returns and interesting changes and possibilities for (specificly) foreigners who are living in Spain, have business in Spain or who have family or a house in Spain.
Do you want to stay up to date? Then fill in your name and email in the Free alert service fields on our home page. Subscribe now, it’s free.
All about starting a business in Spain
We, EuroEconomics, the company behind EasyTaxSpain, have a team of more than 50 tax advisors, lawyers and accountants. Do you want to start a business in Spain? Then download:
Ask us easy your question
Do you have questions about taxes or starting a business in Spain and are you looking for a contact that looks after tax affairs and tax returns in Spain?