Individuals in Spain are taxed according to whether or not they are tax residents in the country. Essentially, tax resident individuals are taxed on their worldwide income and assets under the Personal Income Tax (PIT) and Wealth Tax (WT) rules, whilst non-resident individuals are only taxed on income or assets obtained or located in Spain. Double taxation relief is available for income and assets obtained or located abroad, through the application of either a double taxation treaty or Spanish domestic regulations. The official tax year runs from 1 January to 31 December, and the period for filing PIT and NWT returns is, generally, from May to June of the following year.

Personal Income Tax

PIT is levied on the worldwide income obtained by tax resident individuals during a calendar year.

The law divides income into five groups, as outlined below.

• Employment income, which includes salaries and bonuses, unemployment benefits, pensions and other remuneration paid in cash or in kind.
• Business income, which is the income obtained from the production or provision of goods or services as a self-employed person. The leasing of real estate is treated as a business activity as long as one full-time employee is involved in the management of the activity.
• Income from capital, including rental income and other consideration derived from the lease of real estate and income from movable property (eg, dividends, interest and returns on capitalisation transactions).
• Capital gains and losses.
• Deemed income.

The PIT Law presumes an income of 2% of the cadastral value of urban real estate when the owner does not lease it or does not use it as a permanent residence. The rate is reduced to 1.1 % if the real estate’s cadastral value has been recently reviewed. The 1.1 % rate is applied to half of the acquisition value if the real estate is not located in Spain.

Once the net income is calculated, the taxable base is divided into two categories, to which different tax rates are applied:

• general taxable base, which encompasses employment income, business income, income from real estate assets, presumed income and some revenue from movable property; and
• savings taxable base, which encompasses dividends, interests, capital gains and losses, and other income from movable property.

The tax liability is calculated by applying a general (national) rate and a regional (the applicable autonomous region) rate. Therefore, the final maximum marginal rate will depend on the marginal tax rate established in the autonomous region of residence. By way of example, the PIT rates applicable in Madrid in 2025 range from 18% up to 45% for income included in the general taxable base (the maximum rate applies to income exceeding EUR300,000), and from 19% up to 30% for income included in the savings taxable base (the maximum rate applies to income exceeding EUR300,000).

On the contrary, non-Spanish tax residents are subject to Non-Resident Income Tax (NRIT) only on income obtained in Spanish territory.

Wealth Tax

The WT is levied on the net wealth of the taxpayer, comprising their worldwide assets and rights minus debts. The value of assets, rights and debts has to be determined as at 31 December of each calendar year according to the rules set out in the Wealth Tax Law. There are specific rules for calculating the value to be declared depending on the nature of the assets; in the absence of a specific rule, assets must be declared at their market value.

The autonomous regions partially rule WT and therefore its regulation may differ according to where the taxpayer lives.

On the contrary, non-Spanish tax residents are subject to Spanish NWT only for the rights and assets located in Spain owned by the taxpayer at 31 December of each year. In this case, they can only deduct the charges or encumbrances over these rights and assets or the ones that need to be fulfilled in Spain, as well as debts for capital invested in the mentioned assets.

Non-resident individuals can opt for the application of the standard estate regulations or for the one approved by the Autonomous Region where the assets in Spain with a higher value are located. The option must be made for the whole regulation, either the estate or the regional one.

In any case, where a double tax treaty containing Wealth Tax provisions has been signed within Spain and the corresponding jurisdiction, its rules prevail.

WT provisions state that individuals who own shares in non-listed non-resident entities that, directly or indirectly, hold real estate assets in Spain might be subject to WT, when at least 50% of the company’s assets consist of real estate located in Spain.

Temporary Solidarity Tax on Large Fortunes

Effective from 2022, the Temporary Solidarity Tax on Large Fortunes targets individuals with substantial net worth, applying additional and complementary taxation to that of the Wealth Tax. This state-level tax was designed to prevent the autonomous communities from eliminating the taxation in the Wealth Tax through the introduction of allowances in the quota. The taxable event is identical to that of the Wealth Tax, except that only net assets exceeding EUR3 million are taxed.

In order to avoid double taxation with Wealth Tax, the Temporary Solidarity Tax on Large Fortunes regulations establish that taxpayers can deduct the amount paid for Wealth Tax from the tax quota. In this sense, if both taxes coincide in their tax rates (which will depend on the tax rates that each autonomous community has regulated), the effective tax payable quota would be the same as if only one of the taxes existed.

Inheritance Tax

The Inheritance and Gifts Tax taxes the acquisitions made by individuals by inheritance or by gift. 

Resident individuals are subject to the tax on the value of all assets and rights received, irrespective of where they are located, whereas non-resident individuals are only subject to the tax on the value of the assets and rights received when they are located or could be exercised in Spain.

“Exit Tax”

In the event that a taxpayer loses their Spanish tax residency due to a change of residence, certain unrealised gains may become subject to taxation in Spain under the so-called exit tax regime. Specifically, the positive difference between the market value and the acquisition value of shares or equity interests in any type of entity held by the taxpayer will be treated as a capital gain at the time of the change of residence.

This rule applies if the taxpayer has been considered a Spanish tax resident for at least 10 of the 15 tax years preceding the last year for which they must file a Spanish personal income tax return. Additionally, one or more of the legally established conditions must be met, such as exceeding specific ownership or valuation thresholds in Spanish or foreign entities.

There are some tax reliefs applicable in the WT and Solidarity Tax. For example:

• an exemption for the first EUR700,000 net wealth (depending on the Autonomous Region);
• habitual dwellings are tax exempt up to EUR300,000;
• stakes in family companies or business assets may also benefit from a 100% tax exemption if certain requirements are met:
1. the individual must hold a participation of at least 5% in the company, or of 20% together with his spouse, ascendants, descendants or collateral relatives up to the second degree (the “family group”);
2. the individual – or a member of the family group – must effectively perform management functions in the company, being remunerated with an amount representing more than 50% of his global salary/self-employment income (ie, it must be his main source of active income);
3. the company must not have as its main activity the asset management, which is the case if at least one of the following conditions is met during more than 90 days of the FY:
1. more than 50 % of its assets consist of securities; or
2. more than half of its assets are not linked to business activity (“non-qualifying assets”).

Likewise, stakes in family companies or business assets may also benefit from a 95% to 99% tax relief under the inheritance and gift tax if they meet the abovementioned requirements.

Pain offers specific tax regimes that are attractive to non-resident individuals who become tax residents, as well as a participation exemption regime for qualifying holdings.

“Beckham Law”

The Beckham Law – officially known as the “Special Expatriate Tax Regime” – was introduced in Spain in 2005 to attract skilled foreign workers, particularly high-earning professionals, by offering them favourable tax treatment. Under this law, foreign nationals who move to Spain can choose to be taxed as non-residents for a period of six years, paying a flat tax rate of 24% on their Spanish income (except income from work that is taxed worldwide) up to EUR600,000, instead of the progressive tax rates applied to residents.

This regime significantly reduces the tax burden for expatriates, making Spain an attractive destination for talent from around the world, particularly since other countries are adopting a restrictive interpretation in their individual regimes (eg, the UK, Portugal, Italy).

The benefits of the Beckham Law are extended to family members of expatriates, allowing them also to enjoy the favourable tax treatment. This inclusion makes the relocation process smoother and more appealing for foreign professionals with families, as it ensures that their overall tax liabilities remain low.

The main effect of the Beckham Law is that foreign income – except for the specified income from work – is not taxed in Spain. This limits taxation to income and assets sourced only within Spain. Additionally, applying this regime means that the exit tax will not be triggered, nor will the Controlled Foreign Corporation (CFC) rules apply.

In addition, for Wealth Tax purposes, the Beckham Law implies that taxation is only applicable to assets and rights located in Spain.

“Mbappé Law”

In 2024, the Madrid regional government approved the so-called “Mbappé Law”, an autonomous PIT deduction aimed at attracting foreign investors relocating to the Community of Madrid. The measure allows for a 20% deduction from the autonomous PIT tax base, calculated on the acquisition value – including related costs and taxes (excluding interest) – incurred by the taxpayer in connection with the following assets:

• securities representing the transfer of capital to third parties, whether traded or not, in organised markets (public debt securities and private debt securities); and
• securities representing an interest in the equity of any type of entity, whether traded or not, in organised markets.

The deduction will be available for individuals who, from 1 January 2024, will become PIT taxpayers in the Community of Madrid, as long as they meet the following conditions:

• they have not been tax residents in Spain during the last
• five years; and
• they remain PIT taxpayers in the Community of Madrid throughout the investment period (ie, six years).

Participation Exemption Regime

The Corporate Income Tax (CIT) Law includes a participation exemption regime that may mitigate inefficiencies in the upstream movement of funds in wealth structures. If certain requirements are met, this regime provides that:

• dividends distributed between Spanish companies, as well as EU companies and non-EU companies with a tax treaty in force, may benefit from a 95% exemption; and
• capital gains derived from the sale of subsidiaries may also benefit from a 95% exemption.

Therefore, depending on a range of relevant factors, it may be advisable to consider holding the wealth structure through a holding company.

Non-resident individuals holding real estate properties in Spain will be taxed annually under the Spanish NRIT for the mere holding of the property.

The amount due will depend on the cadastral value (an administrative value determined by the cadastral authorities mainly for the registrar and tax purposes) of the property. There is a reduced 19% tax rate for residents in the EU and a general one of 24% for residents elsewhere.

In addition, as previously mentioned, non-Spanish tax residents will be subject to Spanish WT and Solidarity Tax for the properties located in Spain owned by the taxpayer at 31 December of each year.

Depending on the intended use of the property and other relevant considerations, it may be advisable to assess the possibility of holding the assets through a corporate structure.

The autonomous communities in Spain have various competencies in the regulations of inheritance and gift tax, with some communities like the Community of Madrid or the Valencian Community standing out for applying a 99% tax reduction for transfers between family members of group I and II (which includes ascendants, descendants or adopted children, and spouses).

However, and in the same way as has occurred with the wealth tax through the introduction of the temporary solidarity tax on large fortunes, the central government is proposing a reform of regional funding to harmonise the inheritance and gift tax. This reform seeks to establish a common minimum rate for all autonomous communities to eliminate disparities, such as the mentioned 99% tax relief.

Nevertheless, today, this reform has not been activated by the central government.

The most recent experience shows that the Spanish tax authorities are adopting a more restrictive attitude towards structures that may lead to reduced taxation through the incorporation of foreign companies. This matter is closely linked to the concepts of “place of effective management, “substance” and “business motivation”, which may justify the existence and incorporation of a company or, conversely, may attract the attention of the Spanish tax authorities and consider that they are mere conduit companies that have been incorporated for the sole or main purpose of benefiting, for instance, from domestic exemptions or benefits under double taxation provisions.

Spanish tax regulations have transposed the BEPS actions and, in some cases, have even gone beyond the standards set by the OECD.

For instance, one of the main anti-abuse measures that may affect private clients is the application of Spanish Controlled Foreign Companies (“CFC”) rules.

CFC is a special tax regime that taxes at the level of the Spanish tax resident shareholder certain income generated at the level of non-resident entities as if this income had been distributed to the shareholders (ie, a pass-through).

The objective of CFC is to avoid the deferral of taxes using shell companies to accumulate income in jurisdictions with low taxation until the repatriation of the income that has been attributed to the shell company.

Therefore, the Spanish taxpayer must add to its PIT’s general tax base the income generated by non-resident entities to be attributed to the shareholder deemed as resident in Spain for tax purposes, independently of its nature (ie, dividend, interest, capital gain, etc).

Generally, the attributable income is passive (eg, real estate and movable capital income, etc). Therefore, no attributable income would exist if the entity carries out, mainly, business activities (less than 15% of the total income is considered as attributable income).

Nevertheless, although the entity does not receive passive income, CFC rules will also apply to the total income if the non-resident entity lacks adequate human and material resources and proves that the entity’s constitution and business are based on sound business reasons.

In terms of reporting obligations and transparency, it is worth mentioning the Common Reporting Standard (CRS) and the Central Register of Beneficial Ownership (CRBO).

CRS

Spain has adopted the CRS, and the Spanish Tax Authorities actively use the information obtained through it.

Central Register of Beneficial Ownership

The CRBO is a single, nationwide register managed by the Spanish Ministry of Justice.

The purpose of the CRBO is to collect and provide access to up-to-date information on the beneficial ownership of all Spanish legal entities, as well as trusts, trust-like arrangements, and similar legal structures without legal personality operating in Spain. In addition to current data, the register also includes historical information on such entities, which is available to the competent authorities. The register is part of a broader framework aimed at protecting the integrity of the financial system and other areas of economic activity through the prevention of money laundering and terrorist financing.

In accordance with European Union and Spanish legislation, a beneficial owner is defined as the natural person or persons who ultimately own or control, directly or indirectly, more than 25% of the share capital or voting rights of a legal entity, or who otherwise exercise direct or indirect control over such an entity. Where no such natural person can be identified, the person or persons holding the position of director shall be considered the beneficial owner(s).

Additionally, in the case of foundations, members of the Board of Trustees shall be deemed beneficial owners, and in the case of associations, the members of the governing body or management board shall be considered as such.

Succession, understood as the process of transferring assets via mortis causa, has always had a long tradition in Spain from a legal standpoint, with comprehensive civil and tax legislation in place.

It should be noted that, in addition to state civil regulations, different autonomous communities have their own civil succession regimes, which demonstrates Spain’s rich legal and historical heritage.

Likewise, from a tax point of view, which is what concerns us in this section, Spanish legislation can be divided into two main blocks:

• state legislation; and
• regional legislation.

State legislation acts as a general legislative framework (a law dating back to the last century, although it has evolved), and the autonomous communities have the power to develop the framework established by state regulations, as it is a transferred tax.

The key measures to consider for a smooth and tax-efficient succession primarily involve the family relationships between the deceased and their heirs. Additionally, recognising certain active companies as family businesses can lead to virtually no taxation on those assets.

The international component of inheritance is particularly relevant today, given the increasing mobility of the population and the resulting dispersion of families.

Each country treats inheritance taxes differently, so it is essential to anticipate the inheritance issues that may arise given the different jurisdictions and avoid double taxation as far as possible.

Spain is a country with a long tradition of signing agreements to avoid double taxation for the purposes of personal income tax and wealth tax. However, for inheritance tax, it has only signed three such agreements, with Greece, France, and Sweden.

Outside of these three countries, it is impossible to regulate the regulatory power for the tax in question; therefore, comprehensive advice is crucial to avoid undesirable effects.

Spanish civil law recognises the concept of legitimate inheritance and compulsory heirs. Legitimate inheritance is the portion of the estate reserved by law for certain heirs, who are therefore known as compulsory heirs.

The testator cannot deprive the heirs of their legitimate portion except in cases expressly provided for by law (cases of disinheritance) and cannot impose any charge or encumbrance on it.

The law prohibits agreements between the testator and their compulsory heirs concerning the legitimate portion of the estate. As a result, any waiver or transaction related to this portion is considered null and void. When the testator passes away, the compulsory heirs have the right to claim their legitimate portion. The only requirement is that they must bring into the estate any benefits they may have received through the waiver or transaction.

Mandatory heirs are:

• children and their descendants with respect to their parents and ascendants;
• in the absence of the above, parents and ascendants with respect to their children and descendants; and
• the widower or widow.

The legitimate portion of children and descendants consists of two-thirds of the inheritance assets of the father and mother.

The matrimonial property regime applicable in Spain depends on the Autonomous Region where the spouses reside.

By default in Spain, the regime regulated by the Civil Code is the community property regime. In other words, assets acquired by one or both spouses during the marriage are considered joint property and are divided equally in the event of dissolution of the regime, whether by divorce or death. This regime unifies the marital property, where gains and debts are shared equally, regardless of who generated them.

That said, there are Autonomous Regions that establish different regimes by default.

In general terms, when an asset or right is transferred, whether inter vivos (donation) or mortis causa (inheritance), its tax value is updated for the next transfer. There are always exceptions to this rule, which are usually related to transfers that have not generated taxation or have been subsidised in some way (for example, the transfer of a family business with a 95% subsidy).

One of the possibilities or tools established by the regulations is a 95% tax credit when transferring a family business with the characteristics explained in 1.2 Exemptions.

The various autonomous communities have also developed tax credits for this type of superior assets.

In terms of the transfer of digital assets, there is no significant difference from other assets to be transferred.

That said, special attention must be paid to their physical location, as their unique nature may be decisive in determining the applicable legislation.

We can define both figures as follows.

• A trust is a private contract whereby a person (the settlor or grantor) transfers an asset or right to another person (the trustee) to control and administer it for the benefit of third parties (the beneficiaries), usually family members or close associates, and which has effects vis-à-vis third parties. The trustee administers the assets on behalf of and in representation of the beneficiaries.
• A private foundation is a legal entity created from the donation of the assets of a person or company for specific purposes, which are established in the founding charter. A private foundation has:
1. a specific purpose;
2. legal personality; and
3. legal and economic independence.

Common Law v Civil Law

The trust is a legal concept closely linked to English common law and accepted in most Anglo-Saxon countries, such as the United States and the countries of the Commonwealth (which has more than 50 member countries).

It enjoys a high degree of protection and legal certainty in countries where it is recognised. However, in countries whose legislation is based on civil law, it presents more difficulties and legal problems (non-recognition by the courts).

To mitigate these problems, some countries, such as Switzerland, have signed the Hague Convention of 1 July 1985, on the law applicable to trusts and their recognition (Hague Convention on the Law Applicable to Trusts and on their Recognition), which entered into force on 1 January 1992. This convention offers solutions to the problems that arise around the concept of trusts in civil law jurisdictions.

In addition, other countries in our region, such as France and the Netherlands, have been embracing this Anglo-Saxon concept. However, this has not been the case in Spain. A Spanish citizen can perfectly well create a trust abroad, but its effectiveness and management may be complicated in relation to assets located in Spain or for settling related matters before the Spanish courts.

Foundations, however, are based on civil law or continental law, which governs the legal systems of most countries in Europe and Latin America. However, countries such as Spain only recognise foundations of public interest and not foundations of private interest, which, as in the case of trusts, can complicate their effectiveness and management for assets located in Spain.

The fundamental difference lies in the fact that common law is based on interpretations and judicial decisions, while civil law is based on written rules (which can only be modified by law), making trusts a much more flexible instrument. Trusts are extremely versatile instruments with many possibilities and applications in the private sphere as well as in finance and commerce.

In general terms, the status of trustee for Spanish purposes does not mean that they are the owner or proprietor of the assets; it is merely a formal title.

Conversely, being designated as a beneficiary does not imply that they are the owner of the trust assets, although it may have tax implications. This statement will depend greatly on how the trust deed is drafted, the beneficiaries’ capacity to use and enjoy the assets, and any possible limitations in this regard.

It is possible to create valid trust structures in Spain, although they are more limited compared to other legal entities. This requires a combination of civil law and common law.

The trust is not recognised under Spanish law, hence no specific development should be undertaken.

As described in 3. Trusts, Foundations and Similar Entities, the trust is a concept that is not recognised under Spanish law. Consequently, Spain does not recognise trusts settled either domestically or abroad. Therefore, this common legal instrument used in other jurisdictions – often for purposes such as asset protection – is not available under Spanish law.

Spain does not have an instrument that is as effective or comparable to a trust for asset protection purposes. However, certain structures, such as unit-linked life insurance policies, which tie benefits (both at maturity and upon death) directly to the performance of investment funds chosen by the policyholder, may, in some cases, provide asset protection functions.

As indicated in 1.2 Exemptions, stakes in family companies or business assets may benefit from a 95% to 99% tax relief under the inheritance and gift tax regime, provided that the abovementioned requirements are met. Therefore, a key element of family business succession planning is ensuring compliance with the “family company” requirements in order to apply these tax reliefs and transfer the business to the next generation without a significant tax burden.

The taxable base of the inheritance and gift tax is determined as follows:

• in mortis causa transfers, the taxable base is the net value of the individual acquisition received by each heir or legatee, understood as the value of the assets and rights received, reduced by any deductible charges and debts; and
• in inter vivos gifts and other comparable gratuitous transfers, the taxable base is the net value of the assets and rights acquired, understood as the value of the assets and rights, reduced by any deductible charges and debts.

For the purposes of this tax, the value of assets and rights will generally be considered their market value. However, if the amount declared by the interested parties exceeds the market value, the higher amount will be used as the taxable base.

Market value shall be understood as the most probable price at which an asset could be sold between independent parties, free of any charges or encumbrances.

Therefore, the fair market value of the partial interest must be established for the purposes of the transaction.

Disputes that may arise as a result of inheritance are usually due to a poor understanding of the law, a lack of foresight, and sometimes an unwillingness to address any problems that may exist. In cases involving an international component, the issues can be even more complex, although instruments such as arbitration or mediation can help to resolve the situation.

Compensation mechanisms are provided for in the legislation itself.

Compensation mechanisms and penalties for this purpose may also be provided for from an inheritance perspective.

In Spain, the use of corporate fiduciaries is not a common practice.

This is not applicable in Spain.

This is not applicable in Spain.

This is not applicable in Spain.

According to the Spanish Personal Income Tax Law, an individual would be considered a Spanish tax resident if one of the following tests is met.

Test 1

Physical presence in Spain: the individual spends more than 183 days in a calendar year (1 January to 31 December) in the Spanish territory. Temporary absences will be considered as time spent in Spain unless the individual can prove their tax resident status in another country.

In order to apply this criterion, under the Spanish case law, Spanish Tax Authorities may establish a “calendar of stay”, which includes the days of presence in Spain obtained through different means: Customs Surveillance Service, use of plane tickets, dates of use of VIA-T cards, points cards, dates recorded in public deeds, dates of participation in General Meetings of shareholders, dates of approval of accounts according to entries in the Commercial Registry, signing of contracts, English courses, etc. In short, the information that the Spanish Tax Agency is or could be aware of.

Additionally, temporary absences will be considered time spent in Spain, provided that the individual has a qualified presence in Spain.

Test 2

Centre of economic interest in Spain: the individual holds in Spain, whether directly or indirectly, his main centre of business or professional activities or economic interest.

According to PIT Law regulations, a private individual is tax resident in Spain if his spouse and underage dependent children are tax residents in Spain according to the abovementioned criteria.

Spain does not request any visas for EU and EEA jurisdictions, for most Latin American jurisdictions, or other jurisdictions such as Israel, Singapore, the United States and South Korea, among others. A tourist visa in Spain lasts 90 days from the date of arrival.

Residents may apply for citizenship only in their 10th year of residence in Spain. However, Sephardi Jews and citizens of Equatorial Guinea, Latin America, and the Philippines can apply for Spanish citizenship after only two years of effective residence in Spain. Dual citizenship restrictions apply to most foreign nationals.

In 2003, a law was passed introducing a new legal concept known as the “specially protected estate for persons with disabilities,” which ensures the security and well-being of the affected individual, as well as peace of mind for parents and family members when facing an uncertain future.

Protected Estate is a legal instrument of significant interest designed for individuals with severe physical or sensory disabilities, as well as for those with intellectual disabilities. The Protected Estate Law aims to designate specific assets, such as money, real estate, rights, and securities, to ensure that the ordinary and extraordinary needs of individuals with disabilities are met. By managing these assets and utilising the benefits derived from them, the law seeks to support the vital needs of people with disabilities.

In this way, parents can allocate certain assets to meet the vital needs of their disabled relative without having to make a donation (which carries a higher tax cost), sell the assets, or wait to transfer them by inheritance. It is a designated estate, meaning a pool of assets expressly dedicated to satisfying the vital needs of the person with a disability for whose benefit it is established.

The assets and rights forming this estate, which does not have its own legal personality, are segregated from the personal estate of the beneficiary-holder and are subject to a specific management regime.

In Spain, the legal system provides for the appointment of a guardian (tutor), curator (curador), or judicial defender (defensor judicial) to safeguard the interests of minors and persons with disabilities, ensuring both their welfare and proper asset management.

Guardianship is usually granted to minors and individuals with significant disabilities, while curatorship is intended for emancipated minors or those with less severe disabilities who require help managing their personal and financial affairs. A judicial defender is appointed in cases where there are conflicts of interest.

Generally, the appointment is made by a judge, giving priority to parents, spouse, or individuals named in a will. However, the judge may also designate others, such as descendants, ascendants, siblings, or even third parties.

The Spanish government has been addressing dependency issues through various laws, with the primary one being the Dependency Law.

This law aims to regulate the fundamental conditions that ensure equality in exercising the subjective right of citizenship regarding the promotion of personal autonomy and the care of individuals in situations of dependency, as established by law. It accomplishes this by creating a System for Autonomy and Care for Dependency, involving the collaboration and participation of all public administrations, and ensuring that the General State Administration guarantees a minimum common set of rights for all citizens throughout Spain’s territory.

Under Spanish law, all biological children have equal rights, irrespective of whether their parents are married. Adopted children enjoy the same legal treatment as biological ones.

Spain recognises same-sex marriages and domestic partnerships. Generally, their legal status is equivalent to that of traditional marriages.

Since the 1990s, Spain has had a significant law regulating the tax regime for non-profit entities and providing tax incentives for patronage. These incentives apply both to the non-profit organisations themselves and to individuals and entities that make contributions to such organisations.

These incentives may include, for example, a full exemption from Corporate Income Tax for the non-profit entity in certain cases, as well as significant deductions for PIT and CIT purposes for contributions made by individuals and entities.

The most common structure used in Spain is the incorporation of a foundation, which applies the non-profit regime mentioned above.