What are the main taxes in Spain?

What are the main taxes of Spain, when they should be paid and the importance of having a cryptocurrency platform that helps you keep good accounting of your operations when helping you with your tax filing are some questions that you may be asking yourself right now.

Spain, like any other country, has a complex tax system that can be overwhelming for new residents or entrepreneurs. But this system is designed for financing the welfare state, which includes public expenditure such as health, education and pensions. Therefore, for anyone living or doing business in the country, it is essential to understand What are the main taxes paid?, the deadlines for their submission and the importance of keeping good accounting, especially if you operate with cryptocurrencies.

Classification of taxes in Spain

In our journey through the tax system in Spain, you should first know that these are divided into two main categories: direct taxes e indirect taxesLet's explain these two categories and what we find in them:

Direct taxes in Spain

Direct taxes are those that tax the income or assets of individuals and legal entities. These taxes include:

Personal Income Tax (IRPF)

• • DescriptionThis tax is applied to individuals resident in Spain and taxes their entire worldwide income. It is progressive, which means that the tax rate increases as the taxable base increases.
  • Tax rate: varies between 19% and 47%, depending on the income brackets and the autonomous community.
  • Deadline for submission: The income tax return is filed annually, generally between April and June of the year following the fiscal year.

Corporation Tax (IS)

1. • Description: This tax is applied to companies and entities resident in Spain, paying taxes on their worldwide income. It is considered a direct tax on the profits obtained by companies.
   • Tax rateThe general rate is 25%, although there are reduced rates for new companies and certain sectors.
   • Deadline for submission: It occurs annually, normally between July and September.

Wealth Tax (IP)

• • DescriptionThis tax is levied on the net wealth of individuals, that is, the sum of all their assets minus their debts. It is applied to all tax residents in Spain, as well as to non-residents for the assets they own in the country.
  • Tax rate: It would range between 0,2% and 2,5%, depending on the value of the assets.
  • Deadline for submission: It occurs annually, generally between April and June.

Inheritance and Gift Tax (ISD)

• • Description: This tax is applied to the transfer of assets and rights by inheritance or donation. It is a tax assigned to the autonomous communities, which means that it may vary depending on the region.
  • Tax rate: varies according to the value of the assets and the relationship with the deceased or donor.
  • Deadline for submission: Generally, it must be submitted within six months of death or donation.

Indirect taxes in Spain

Indirect taxes are those applied to the consumption of goods and services. The main indirect taxes in Spain are:

Value Added Tax (VAT)

• • Description: This tax is applied to most commercial transactions and services provided in Spain. VAT is a tax that is paid at each stage of the production and distribution chain.
  • Tax rateThere are three types: the general rate of 21%, the reduced rate of 10% and the super-reduced rate of 4% for certain products and services.
  • Deadline for submission: It is submitted quarterly, with the declarations for the months of January, April, July and October, and annually.

Tax on Property Transfers and Documented Legal Acts (ITP and AJD)

• • Description: This tax is levied on the purchase of real estate, vehicles and other legal acts. It is a tax assigned to the autonomous communities, so the rates may vary.
  • Tax rate: varies according to the autonomous community and the type of operation.
  • Deadline for submission: Generally, it must be submitted within 30 business days following the operation.

1. Special taxes
   • Description: They apply to specific products such as tobacco, alcohol and hydrocarbons.
   • Tax rate: Varies depending on the type of product.
   • Deadline for submission: It depends on the type of tax and the established periodicity.

Spanish taxes if you trade cryptocurrencies

At this point we can clearly see that the Spanish tax system is quite complex, which helps us understand the importance of proper accounting is essential to comply with tax obligations in Spain. This becomes even more relevant if you operate with cryptocurrencies, as transactions can be numerous and complex.

After all, cryptocurrencies, such as Bitcoin and Ethereum, have gained huge popularity in recent years, and with it, the need to understand their tax treatment. Faced with this reality, the Tax Agency has established guidelines on how to tax profits obtained through cryptocurrencies, guidelines that include:

• Profit and loss statement: Profits derived from the sale of cryptocurrencies are considered capital gains and must be declared in the personal income tax.
• Income tax: Profits obtained from the purchase and sale of cryptocurrencies are subject to personal income tax, with rates that vary depending on the profit.

Bit2Me Tax, making cryptocurrency accounting easier

This is where features like Bit2Me Tax show their full potential. First, because Bit2Me Tax helps users to have full control of their cryptocurrency operations, in order to facilitate the calculation of corresponding taxes. Among these functions we highlight:

• Automatic recording of transactions: They allow precise control of all operations carried out, which simplifies tax filing.
• Calculating profit and loss: They help automatically calculate the profits and losses obtained in each transaction, which is crucial for tax reporting.
• Report generation: Some platforms generate tax reports that can be used directly for filing with the Tax Agency.
• Avoiding mistakes and penalties: By keeping a clear and organized record of your transactions, you can minimize the risk of making mistakes in your tax return.

Finally, remember that it is always advisable to consult with a tax advisor for personalized guidance and to ensure that you are complying with all your tax obligations.