What we do for companies
| Service | Includes |
|---|---|
| Bookkeeping | Recording invoices, bank reconciliation, fixed assets |
| Quarterly returns | VAT (modelo 303), withholdings (111, 115), payments on account |
| Annual returns | Corporate tax (modelo 200), VAT summary (390), information returns |
| Annual accounts | Preparation, approval and filing at the Mercantile Registry |
| Advice | Dividends, directors' pay, related-party transactions, restructuring |
Corporate tax
Spanish companies pay corporate tax on their profit at a general rate of 25%, with reduced rates for newly created and smaller companies in certain conditions. See corporate tax for Spanish companies.
VAT
Most businesses charge VAT at 21%, 10% or 4% depending on the goods or services, and file quarterly. Hospitality, rentals and property transactions have specific rules that we apply carefully.
Foreign owners
Many of our corporate clients are owned by foreign individuals or groups. We report in English or German, coordinate with the group's auditors and handle dividends and withholding taxes under the treaties.
Self-employed
For professionals working on their own account, see tax for the self-employed and autónomo taxes and social security. All key dates are in our Spanish tax calendar.
An illustrative example
Based on situations we commonly see; not a specific client. A German couple ran a small rental-management company in Mallorca with a local bookkeeper who filed late. We took over the books, regularised two quarterly VAT returns, filed the annual accounts that were missing at the Registry and set up monthly reports in German.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Questions about accounting services in Mallorca
Must a Spanish company file annual accounts?
Yes, at the Mercantile Registry within the legal deadline after approval.
How often are VAT returns filed?
Usually quarterly, with an annual summary.
Can you report to us in German?
Yes, our reports and explanations can be in German or English.
Do you also handle payroll?
We coordinate payroll and social security with our labour partners and file the related tax returns.