Last updated: 07 November 2012

Taxation

Australia and Spain are signatories to a Double Taxation Agreement but we suggest you seek professional advice in the complex and specialised field of taxation. National taxes in Spain are made up of direct taxes on income, both corporate and personal, assets, inheritance and gift taxes. There are also indirect taxes, including a Value Added Tax (VAT), transfer tax and stamp duty, excise and customs duty.

VAT assessed on the duty-paid value (including any applicable handling charges) is levied on most items and paid by the importer. A two-tiered system is used, as follows:

• A 16 per cent standard rate is applicable to most products.
• A reduced seven per cent rate of VAT is applied to goods such as basic foods, medical and pharmaceutical products. A four per cent  VAT levy applies to books and newspapers.
• Excise tax is levied, in addition to VAT, on goods such as alcoholic beverages, petroleum products and tobacco products.

Top Business Risks

• Bribery of Foreign Officials
• Tariffs and regulations
• Doing business in Spain

OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.