The Carbon Border Adjustment Mechanism (CBAM) is an EU regulatory framework designed to ensure that imported goods reflect the carbon emissions generated during their manufacturing process. Its primary objective is to prevent “carbon leakage”—a shift of production to countries with less stringent climate policies—and to maintain fair competition between EU producers and external exporters. As … Read more
What is the Modelo 840? The Modelo 840 is the form that businesses and professionals in Spain must use to register the economic activity they carry out for tax purposes. It is linked to the Impuesto sobre Actividades Económicas (IAE), which is a local tax paid by companies and self-employed people based on the type … Read more
IntroductionTax Form 232 is an essential document for companies in Spain who engage in international transactions with Tax Havens or dealings with related parties. It provides the Spanish tax authorities (Agencia Tributaria) with information about these transactions, ensuring compliance with Spain’s tax regulations and its commitment to international standards of transparency. In this article, we … Read more
In Spain’s ever-evolving administrative landscape, few initiatives combine digital transformation and regulatory rigour as effectively as Verifactu. Scheduled to come into force in 2026, this system represents a decisive step towards transparency — and a fundamental shift in how businesses and the self-employed issue invoices and report to the tax authorities. Verifactu: What It Is … Read more
When a company becomes subject to a tax inspection, it must adhere to two different types of deadlines: response deadlines for specific requests and the overall timeframe for the inspection process. While businesses are typically required to respond to tax authority requests within 10 or 15 business days or, in certain cases, one month, the … Read more
A Crucial Legal Obligation for All Companies Registered in Spain In Spain, the filing of annual accounts (cuentas anuales) is a fundamental legal requirement for all companies listed in the Registro Mercantil (Commercial Registry). This obligation applies to all limited companies, whether they are actively trading, dormant, small, or large. Far from being a mere … Read more
In Spain, a dormant company, known as an “inactive company,” is one that has ceased trading but has not been formally dissolved. Despite not engaging in business activities, these companies still have certain legal obligations to fulfill: By adhering to these obligations, dormant companies in Spain can maintain compliance with legal requirements and avoid potential … Read more
What is M202 and who is required to file it? Businesses and entities operating permanently in Spain, as well as those under an attribution of income regime that were established outside Spain but maintain a presence in the country, are required to submit M202. This form serves as an advance payment of the Corporation Tax … Read more
When business partners who actively work in their company consider extra compensation, they usually have two options: receiving a salary bonus or taking dividends. The choice isn’t always straightforward, as each option has different tax implications and costs. Understanding these differences can help determine the most beneficial route. A salary bonus is treated as regular … Read more
In Spain, businesses and self-employed individuals must comply with various tax reporting obligations. One of these is Modelo 347, an annual informative declaration required by the Spanish Tax Agency (Agencia Tributaria). This form is used to report transactions with third parties that exceed a specific threshold, ensuring greater transparency and preventing tax fraud. What Is … Read more
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