Spain: from company profit to money in your pocket

If you own the company you work through, two taxes hit the same money in turn. The company pays corporate tax on its profit. Then you pay income tax on the dividend you take out of what is left. In Spain the second tax gives you no credit for the first one — the two stack. That is what the numbers below are showing you, and it is why a calculator that works out only one of them is telling you half the story.

€200,000 of profit, taken out in full

Your company Corporate tax Tax on the dividend You keep Total rate
New company, first profitable year €30,000 €37,980 €132,020 34.0%
Turnover under €1M €41,000 €35,450 €123,550 38.2%
Turnover €1M–€10M €46,000 €34,300 €119,700 40.2%

The gap between the best and worst case here is €12,320 on the same €200,000 of profit — decided by how long the company has been profitable and how much it turns over, not by anything you do differently in the year.

Where the money goes, step by step

Taking the middle case — turnover €1m–€10m:

Company profit €200,000
Corporate income tax -€46,000 Empresas de reducida dimensión (art. 101 LIS)
Tax on dividends -€34,300 19% is withheld at payout and credited against this
In your hands €119,700 Total tax rate 40.2%

What this assumes

All Spain taxes · Corporate tax on its own · Dividend tax on its own · How we calculate

Figures still waiting on the law

These amounts are in force in practice — the administration applies them — but the statute that fixes them for this tax year has not been passed yet. We show them because leaving them out would give you a worse answer, not a safer one.

This calculator is for information only and is not tax advice. Rates and thresholds change; check the methodology page for sources and verification dates, and confirm your own situation with a qualified adviser.