A limited company (Sociedad Limitada, SL) in Barcelona pays Corporate Income Tax on its profits, files VAT on its sales and purchases, pays over the personal income tax (IRPF) it withholds from employees, professionals and landlords, and pays the City Council’s local taxes: property tax (IBI) if it owns real estate, the Business Activities Tax (IAE) if its turnover exceeds one million euros, and the public fee for commercial waste collection.
One fact many guides have not updated: in 2026 most SMEs no longer pay 25% Corporate Income Tax. A micro-company pays 19% on its first 50,000 euros of profit and 21% on the rest, and a small company pays 23%.
Summary: an SL’s taxes at a glance
| Tax | What it taxes | Rate | Form | When |
|---|---|---|---|---|
| Corporate Income Tax | The year’s profit | 19% to 25% depending on size (15% for newly created companies) | 200 and instalment payments 202 | July; instalments in April, October and December |
| VAT | Sales, minus the VAT paid on purchases | 21%, 10% or 4% | 303 and annual summary 390 | Quarterly and January |
| Withholdings on employees and professionals | Payroll and professionals’ invoices | Depends on payroll; 15% for professionals | 111 and summary 190 | Quarterly and January |
| Withholdings on rent | Rent for the premises or office | 19% | 115 and summary 180 | Quarterly and January |
| IAE (Business Activities Tax) | Carrying on the business activity | Depends on activity code and premises | Registration with form 036 | Only if turnover is 1 million or more |
| IBI (property tax) | Real estate the company owns | Set by the City Council | Municipal bill | Annual |
| Commercial waste | Collection of the business’s waste | Depends on floor area and activity | Municipal self-assessment | When the activity starts, then annually |
Corporate Income Tax in 2026: what your SL really pays
Corporate Income Tax is charged on the company’s profit: income minus deductible expenses, with the adjustments set by law. Since 2025, Law 7/2024 has been lowering the rate step by step for smaller companies.
| Type of company | 2025 | 2026 | 2027 |
|---|---|---|---|
| Micro-company (turnover under 1 million): first €50,000 of profit | 21% | 19% | 17% |
| Micro-company: profit above €50,000 | 22% | 21% | 20% |
| Small company (turnover under 10 million) | 24% | 23% | 22% |
| Other companies and asset-holding companies | 25% | 25% | 25% |
| Newly created company: first year with profit and the following year | 15% | 15% | 15% |
Each year’s rates apply to the financial year that starts in that year. The return filed in July 2026 covers the 2025 financial year, so it still uses the 2025 rates.
Example. A Barcelona SL with 600,000 euros of turnover and 80,000 euros of profit in 2026 is a micro-company. It pays 19% on the first 50,000 euros (€9,500) and 21% on the remaining 30,000 (€6,300): 15,800 euros in total, an effective 19.75%. At the 25% quoted by many guides it would pay 20,000 euros.
How it is paid:
- Form 200: the annual return, from 1 to 25 July if the financial year matches the calendar year.
- Form 202: payments on account in April, October and December (from the 1st to the 20th). They are only mandatory if the last return showed tax to pay.
VAT: what you charge your customers is not yours
The SL adds VAT to its invoices (21% standard, 10% or 4% depending on the product or service) and each quarter pays the difference between that VAT and the VAT it has paid on its purchases. If it has paid more than it has charged, it can carry the balance forward or claim a refund.
- Form 303: quarterly, from 1 to 20 April, July and October, and by 30 January for the fourth quarter.
- Form 390: annual summary, in January.
- Form 349: if it buys from or sells to businesses in other EU countries.
Income tax withholdings: the tax the SL pays on behalf of others
The company does not pay this money out of its own pocket: it deducts it from what it pays others and pays it to the Tax Agency on their behalf.
- Employees and professionals (form 111 and summary 190): the withholding on payroll and 15% of invoices from lawyers, consultants and other professionals (7% if the professional started their activity less than three years ago).
- Rent for the premises or office (form 115 and summary 180): 19% of the rent, when the landlord is not exempt from withholding.
- Directors (form 111): director’s remuneration carries a 35% withholding, or 19% if the company’s turnover is under 100,000 euros.
- Dividends (form 123 and summary 193): when it distributes profits to shareholders, it withholds 19%.
Local taxes for an SL in Barcelona
This is the part that changes from one municipality to another.
- IAE: the SL registers for it, but is exempt during its first two years of activity and while its turnover is under 1 million euros. In practice, most Barcelona SMEs do not pay it.
- IBI: if the company owns its premises, office or warehouse, it receives the Barcelona City Council’s bill every year.
- Commercial waste collection: businesses with premises in Barcelona pay the municipal public fee for commercial waste collection, calculated on floor area and type of activity. It is self-assessed when the activity starts and then charged every year. It can be avoided by hiring an authorised private waste manager and proving it to the City Council.
- Municipal capital gains tax (plusvalía): if the SL sells urban real estate.
- ICIO and fees: for refurbishment works on the premises, licences, terraces or signage.
Other taxes that may apply
- Transfer tax and stamp duty (ITP and AJD) in Catalonia: if the SL buys a second-hand property or signs certain public deeds. Setting up the company and capital increases are exempt. More detail in transfer tax and stamp duty for companies in Catalonia.
- Form 347: information return filed in February listing customers and suppliers with whom the company has operated for more than 3,005.06 euros in the year.
An SL’s tax calendar
| Month | What is filed |
|---|---|
| January | 303, 111 and 115 for the fourth quarter; annual summaries 390, 190, 180 and 193 |
| February | 347 |
| April (1st to 20th) | 303, 111 and 115 for the first quarter; first 202 instalment |
| July | 303, 111 and 115 for the second quarter (1st to 20th); Corporate Income Tax, form 200 (1st to 25th) |
| October (1st to 20th) | 303, 111 and 115 for the third quarter; second 202 instalment |
| December (1st to 20th) | Third 202 instalment |
From 1 January 2027, companies will have to invoice with software adapted to Verifactu.
And when money leaves the company
Paying Corporate Income Tax is not the end. If shareholders take profits as dividends, they pay personal income tax at between 19% and 30% depending on the amount. If they take them as a director’s salary, it is taxed on the general income tax scale, which reaches 50% in Catalonia. How to split between salary, dividends and reserves is one of the decisions that most changes what the company and its shareholders pay overall.
How to reduce what your SL pays
An SL’s tax bill depends as much on what it earns as on how it is organised: which expenses are deducted, when profits are distributed, which incentives apply (capitalisation reserve, R&D deductions) and whether a holding structure makes sense. We explain it in how to pay less tax in a limited company and in an SL’s expenses.
At GM Tax Consultancy we have handled the taxes of SMEs and companies in Barcelona since 2003. If you want to know how much your company should pay this year and how much room there is to pay less, let’s talk.
Frequently asked questions
How much tax does an SL pay in its first year?
A newly created company pays 15% Corporate Income Tax in the first year it makes a profit and in the following year. It is also exempt from IAE for its first two years. VAT and withholdings work the same way from day one.
Who pays more tax, a self-employed person or an SL?
It depends on the profit. The self-employed pay personal income tax, whose rate rises with income and reaches 50% in Catalonia. The SL pays between 19% and 25%, but has higher fixed costs and the shareholder pays tax again when taking the money out. We analyse it in self-employed or limited company.
How much does an SL pay per month?
There is no fixed monthly tax. SLs pay quarterly (VAT and withholdings) and once a year (Corporate Income Tax), plus the instalment payments. The usual fixed monthly costs are the director’s self-employed social security contribution and the accountant.
Do all SLs pay 25% Corporate Income Tax?
No. In 2026, micro-companies pay 19% and 21%, small companies 23% and newly created companies 15%. The 25% rate applies to companies with turnover above 10 million and to asset-holding companies.
Does an SL in Barcelona pay more tax than one in another city?
State taxes (Corporate Income Tax, VAT, personal income tax) are the same throughout Spain. What changes are local taxes, such as IBI, IAE or the waste fee, and regional taxes that apply to specific transactions, such as transfer tax on property purchases.