State Taxes

Impuesto sobre la Renta de las Personas Físicas (Personal Income Tax)

Personal income tax is a direct, personal, subjective tax, levied on the total amount of an individual’s net income and capital gains. This tax is applied to the tax-payer’s economic capacity.

Impuesto sobre Sociedades (Company Tax)

This is a direct and personal tax levied on the income of companies and other legal entities not subject to personal income tax, as well as non-legal entities. It is applied to company profits.
The tax event is the receipt of income and taxpayers include corporations and partnerships, temporary unions of companies and different types of investment and pension funds, etc.

Impuesto sobre el Valor Añadido (Value Added Tax: VAT)

This is an indirect tax levied on consumption and the sale of goods and services by companies or professionals, and acquisitions of goods and imports between EU countries. VAT is borne by the end consumer and not by the companies and professionals, who, in general, charge VAT to their customers and deduct the VAT charged by their suppliers.