Corporate Tax 2025: Key updates for your company

2025 brings important changes to Corporate Tax in Spain, especially designed to benefit small and medium-sized businesses. The goal is clear: to adjust the tax burden to each company’s real capacity and encourage reinvestment of profits.

One of the most notable updates is the introduction of a reduced tax scale for companies with an annual turnover below one million euros. These companies will be taxed at 21% on the first €50,000 of taxable income and 22% on the remaining amount. This measure aims to improve liquidity and support micro-enterprises and single-member companies, many led by self-employed professionals who operate through a company structure.

The rules for capitalisation reserve have also been updated. This reserve allows companies to reduce their taxable base based on the increase in equity. From now on, the reduction may reach 15% of the increase, limited to 10% of the positive taxable base. To benefit, the increase must be maintained for three years, and a non-distributable reserve must be set up within the company’s equity.

The changes also favour small-sized entities, with turnover under 10 million euros. These companies will benefit from a reduced rate of 20%, although a transitional rate of 24% will apply in 2025, decreasing progressively to the definitive rate.

2025 CORPORATE TAX RATES

Micro-enterprises (< €1 million turnover)
▸ 21% on the first €50,000 of taxable base
▸ 22% on the remaining amount

Small-sized entities (< €10 million turnover)
▸ 24% in 2025 (transitional)
▸ 20% from following years

Newly created companies
▸ 15% for the first two profitable tax periods

Protected cooperatives
▸ 20% on cooperative results
▸ 25% on non-cooperative results (with a potential reduction of up to 3 points)

Credit institutions and hydrocarbons sector
▸ Rate remains at 30%

At Valero Tax Legal, we can help you assess whether your company qualifies for these benefits and how to apply them correctly to optimise your tax planning.

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