Incentive programmes
The main incentive programmes available in Catalonia offer both grants and loans under preferential conditions and are aimed at business projects for R&D and innovation, training, energy efficiency, renewable energy and investment in fixed assets. Apart from these programmes, there are other incentives for international and export activities.
Calls 2010:
Incentives 2010:
Benefits of the Spanish tax system for companies
The Spanish tax system offers a wide range of benefits for companies, holding companies and employees. It also offers benefits for specific activities.
- Tax deductions for exporting companies (3% in 2010).
- Additional deductions for areas such as professional training (between 1% and 2%), R&D activities (between 25% and 42%) and technological innovations (8%).
- Effective tax rate of a company after tax rebates could be as low as 0%.
- Spain has a large number of double taxation treaties, especially with Latin American countries, which makes it an ideal jurisdiction for investments into Latin America.
Tax benefits for holding companies
Spain has one of the most favourable tax systems for foreign holding companies (entities that hold foreign securities, ETVE), i.e. for those international groups that wish to have a base from which to manage their holdings in several countries.
The only requirement is the incorporation of a company in Spain and the provision of securities from the companies in which it has a holding (providing that they represent a minimum holding of 5% or less and have held the shares for one year, but with a cost in excess of € 6m, and providing that the companies in which it has a holding conduct business).
This privileged tax system means that an ETVE does not have to pay tax on dividends received from non-resident companies in which it has a holding and its members do not have to pay on the sums distributed by the ETVE. It also allows the following:
- Exemption from corporate income tax on dividends and capital gains earned from foreign subsidiaries.
- Withholding tax exemption on dividends from foreign subsidiaries distributed outside Spain. An exemption is also applied to the tax on capital gains derived from the transfer of Spanish company shares.
Tax deductions for R+D+I
The Spanish tax framework for R+D+I is acknowledged by the European Union of Industrial and Employer's Confederation (UNICE) as being of the best among OECD countries.
In world terms, Spain and Catalonia offer one of the best tax deduction systems for research, development and technological innovation activities for companies.
The following deductions may apply:
- To companies hired by foreign companies to carry out R+D tasks that are not permanently established in Spain. In such a case, the Spanish company may consider R+D expenditure to be any associated with R+D projects commissioned by foreign companies.
- To subsidiaries of multinationals established in Spain that carry out R+D activities from Spain for group entities abroad
Deductible activities (2010):
Research and development:
- Expenditure relating to R+D projects: 25% (exceptionally, up to 42%).
- Personnel expenditure on qualified researchers dedicated exclusively to R+D activities: an extra 17%.
- Investments in tangible and intangible fixed assets (excluding real estate property and land) intended exclusively for R+D activities: 8%.
Technological innovation:
- Expenditure relating to industrial design and production process engineering: 8%.
- Expenditure relating to the acquisition of advanced technology in the form of patents, licences, know-how and designs (with a limit of € 1m): 8%.
- Expenditure relating to obtaining a certificate of compliance with ISO 9000, GMP or other similar quality regulations: 8%.
- Expenditure relating to technological diagnostic activities geared towards the identification and orientation of advanced technological solutions: 8%
