What does your subsidiary have to file each year?
It depends on the country and on whether you have employees, but the skeleton is the same: corporate tax, VAT or its equivalent, withholdings on payroll and suppliers, and informative returns.
Key points
- Corporate tax (IRC, IS, IRES, Corporation Tax)
- VAT and periodic returns
- Payroll and supplier withholdings
- Informative returns and intra-community operations
Corporate tax rates by country
Nominal rates give a steer, but what you pay depends on deductions, the regime and the group structure. These are the pre-deduction rates in each market we cover:
Key points
- Portugal · IRC 19%
- Spain · IS 25%
- Italy · IRES 24%
- France · IS 25%
- Germany · 30-33% (including trade tax)
- United Kingdom · Corporation Tax 19-25%
- Andorra · IS 10%
- Dubai · Corporate Tax 9%
How do you avoid paying twice on the same profit?
Spain has double taxation treaties with Portugal, France, Germany, Italy, the United Kingdom and Andorra, and with the United Arab Emirates for certain income. The treaty decides which country taxes what and what withholding applies when sending dividends, interest or royalties back.
In the analysis we review the invoicing chain, transfer pricing between parent and subsidiary and the withholding you would suffer on repatriation. That number is what decides whether the structure works.
What monthly tax compliance costs
The fee depends on the country and on the volume of invoices and employees. These are the starting prices for accounting and tax; the final figure is set after reviewing your case, with no hidden costs:
Key points
- Spain · from 149 EUR/month
- Dubai · from 350 EUR/month
- Portugal · from 400 EUR/month
- Italy · from 450 EUR/month
- France and Andorra · from 550 EUR/month
- United Kingdom · from 600 EUR/month
- Germany · from 1,450 EUR/month
