On December 30, 2011 various urgent measures were implemented by the newly formed government in order to correct the budget balance through changes in Spanish tax, finance and labour regulations. The Royal Decree-Law was published in the Spanish Official Gazette dated December 31.

The fiscal measures implemented by the Royal Decree-Law mainly consist of the following standards:


For periods 2012 and 2013, the gross tax payable established by the State has increased with a new complementary table with a higher tax rate ranging between 1.5% and 7.5%, depending on which section of the scale you fit.

The taxable income of saving also increases of at least 2% in each section of its table.

As a result of these changes to the general tax base and to the taxable income of saving, the basis for calculating the rate of withholding has increased in the same proportion according to the rules applicable to the complementary table of the general tax base under the Spanish income tax regulation.

Also, the previous fixed rate of 19% of withholding increases up to a rate of 21%. With respect to earnings of administrators and board members that used to support a 35%- retention, the latter now rises to 42%.

The deduction for investment in residence is allowed again with no limit to the tax base to apply the deduction provided for acquisition or restoration of the house that constitutes the principal residence of the taxpayer.


Increase in tax rates and withholdings for fiscal years 2012 and 2013 from 19% to 21%


Increase in tax rates and withholdings for fiscal years 2012 and 2013:

I. From 19% to 21% for dividends when you transfer the permanent establishment to the head office abroad and when the Directive of the parent-subsidiary is not applicable, and for the interests on the transfer of capital and capital gains arising from the transmission.
II. From 24% to 24.75% for non-residents without permanent establishment in the absence of a specific tax rate.


– Reduced tax rate for SMEs of 20% for the first 300.000 Euros.
– Deduction of the expenses destined to implement employees’ use of new technologies for communication and information.
– System of installments.
– Reduction of 20% of the net income from economic activities for companies maintaining or creating new positions, with the same requirements.

Mauricio Ticó