By the time your company is registered, the paperwork of setting up is over and the paperwork of running a business begins. This checklist covers the accounting and tax essentials a new business in Spain should have in place in its first year. It assumes the business already exists. If you are still choosing a structure or forming the company, start with our guides to choosing a business structure and setting up a company in Spain.
Before the first sale: census registration
The Tax Agency’s census registration, Modelo 036, must be filed before you start activities, carry out transactions or become obliged to withhold tax. In it the business declares, among other things:
- its activity and where it is carried out;
- its VAT position, and whether it will deal with EU businesses (registration in the intra-community operators register, ROI);
- whether it will withhold tax, for example on salaries or on rent paid for business premises.
If any of these facts changes later, the census declaration has to be updated. Getting it right at the start avoids filings you do not need and missing ones you do.
VAT: there is no turnover threshold in Spain
Under Spanish VAT law, a business established in Spain that supplies goods or services subject to VAT charges VAT from its first invoice, whatever its turnover. Spain has no general VAT registration threshold for businesses established here. In particular, the figure of 85,000 euros that this article previously gave as a Spanish threshold is not a Spanish rule:
- The VAT Law, in its consolidated text updated on 7 October 2026, lists nine special VAT schemes (Article 120). None of them is a small-business exemption or “franchise” scheme.
- In a 2024 meeting with tax professionals, the Tax Agency explained that Spain does not have that scheme, which other EU countries apply with a maximum threshold of 85,000 euros, and that whether Spain will adopt it was unknown.
- Since 1 January 2025, EU rules allow small businesses established in one member state to use the exemption scheme of other member states that have one. That does not create an exemption for supplies taxed in Spain.
Most new businesses file the quarterly VAT return (Modelo 303) within the first 20 calendar days of April, July and October, and within the first 30 days of January for the fourth quarter. Businesses whose turnover exceeded 6,010,121.04 euros in the previous year, and some others, file monthly (Article 71 of the VAT Regulation). Our VAT guide explains rates and cross-border rules.
Corporate income tax in the first years
A company files its corporate income tax return (Modelo 200) within the 25 calendar days after the six months following the end of its tax period. For a company whose tax year is the calendar year, that is 1 to 25 July of the following year.
The rates for tax periods starting in 2026 are set in Article 29 and the 44th transitional provision of the Corporate Income Tax Law: 25% in general; 19% on the first 50,000 euros of taxable profit and 21% on the rest for companies with net turnover below 1 million euros in the previous period; and 23% for other small companies. A newly created company carrying on an economic activity pays 15% in its first tax period with a positive taxable base and in the next one, unless a lower rate applies, with exclusions for activities taken over from related people or carried on by a majority partner in the previous year.
From the second year, companies may also have to make payments on account (Modelo 202) in the first 20 days of April, October and December, calculated on the last corporate tax return already due.
Books, records and annual accounts
The Commercial Code requires every business to keep orderly accounts suited to its activity, allowing a chronological record of all its operations. Companies keep, as a minimum, a journal (Libro Diario) and an inventory and annual accounts book (Libro de Inventarios y Cuentas Anuales).
For an SL or SA with a calendar tax year, the annual accounts cycle under the Capital Companies Law is:
- the directors prepare the annual accounts within three months of the year end (by 31 March);
- the general meeting approves them within the first six months (by 30 June);
- the accounts are filed for deposit at the Commercial Register within one month of approval.
Keep your books, correspondence and supporting documents for six years from the last entry (Article 30 of the Commercial Code). Tax rules have their own period: the Tax Agency’s right to assess tax generally expires after four years (Article 66 of the General Tax Law), counted from the end of each filing period.
Payroll and Social Security
If the business will employ people, it must register as an employer with the General Treasury of Social Security before starting activity, and each employee must be registered before they start work. Payroll then brings monthly Social Security contributions and withholding on salaries, with their own returns.
First-year checklist
| When | What | Who files |
|---|---|---|
| Before trading | Census registration (Modelo 036) with activity, VAT and withholding obligations | The business |
| Before the first hire | Employer registration with Social Security; worker registered before starting | The business |
| Every quarter (most businesses) | VAT return (Modelo 303): first 20 days of April, July and October; first 30 days of January | The business |
| Every month (if you have staff) | Social Security contributions and payroll | The employer |
| Throughout the year | Orderly accounts: journal and inventory and accounts book | The business |
| By 31 March / 30 June / one month later | Prepare, approve and deposit annual accounts (companies, calendar year) | Directors and general meeting |
| 1 to 25 July | Corporate income tax return (Modelo 200), calendar-year companies | The company |
This table is a starting point. Your own calendar depends on your activity, structure, staff and international operations, so ask your adviser for a calendar built for your business.
Frequently asked questions
How much tax do companies pay in Spain?
The general corporate income tax rate is 25%. For periods starting in 2026, companies with turnover below 1 million euros pay 19% on the first 50,000 euros of profit and 21% on the rest, other small companies 23%, and new companies 15% in their first two profitable periods, subject to the conditions above.
How far can the taxman go back in Spain?
As a general rule, the Tax Agency’s right to assess tax expires after four years (Article 66 of the General Tax Law). That period can be interrupted, for example by an inspection. Separately, the Commercial Code requires businesses to keep their books and supporting documents for six years.
How we can help
MMR Consultant is based in Málaga with offices in Marbella. Our accounting, tax and payroll teams help new businesses set up their census registration, VAT, bookkeeping and payroll correctly from the start. Contact us before your first invoice.
Sources
Checked on 14 October 2026.
- Agencia Tributaria, Modelo 036 frequently asked questions, page updated 3 June 2025.
- Boletín Oficial del Estado, VAT Law (Law 37/1992), consolidated text updated 7 October 2026, Article 120 (special schemes).
- Agencia Tributaria, minutes of the Forum of tax professional associations, 10 July 2024 (franchise scheme).
- Agencia Tributaria, EU small business scheme from 1 January 2025, page updated 13 October 2026.
- Boletín Oficial del Estado, VAT Regulation (Royal Decree 1624/1992), Article 71.
- Boletín Oficial del Estado, Corporate Income Tax Law, Articles 29, 40 and 124 and 44th transitional provision.
- Boletín Oficial del Estado, Commercial Code, Articles 25 and 30.
- Boletín Oficial del Estado, Capital Companies Law, Articles 164, 253 and 279.
- Boletín Oficial del Estado, Social Security registration regulation (Royal Decree 84/1996), Articles 5 and 32.
- Boletín Oficial del Estado, General Tax Law (Law 58/2003), Article 66.
This article is general information, not tax advice for your case.
