What is the VAT rate in Spain? Current VAT rates Spain 2025
Are you planning to run a business in Spain, investing in real estate, or perhaps just want to better understand how the tax system works in this country? One of the most important taxes encountered by every entrepreneur and consumer is VAT. In this article, we explain how much VAT is in Spain in 2025, what the current rates are, who the reduced VAT rates apply to, and what the rules for settlement are for companies. You will also learn how often VAT returns must be filed in Spain and where to check the current regulations. If you are interested in the topic of VAT rate in Spain, this guide will clear up your doubts and help you avoid mistakes in settlements.
What will you find in the article?
How much is the basic VAT rate in Spain?
VAT in Spain, known as IVA (Impuesto sobre el Valor Añadido), is one of the most important indirect taxes in the country. In 2025, the basic VAT rate in Spain is 21%. This means that most goods and services sold within Spain are subject to this rate. It is worth knowing that the VAT rate in Spain for 2025 has not changed compared to previous years, which provides stability for entrepreneurs and consumers. If you wonder what VAT in Spain applies to the most commonly purchased products, the answer is: in most cases, it is exactly 21%. The VAT rate in Spain is crucial both for people running a business and for tourists or investors.
Which goods and services are subject to the reduced VAT rate?
Not all products and services in Spain are subject to the basic VAT rate. There are also reduced rates aimed at supporting certain sectors of the economy and protecting consumers. The reduced VAT rate in Spain is 10% and applies to, among others, food, hotel services, passenger transport, as well as some pharmaceutical products. Additionally, Spain applies a super reduced VAT rate of 4%, which covers basic foodstuffs, books, newspapers, and certain medicines. This makes VAT in Spain more consumer-friendly for low-income individuals and supports the development of culture and education. If you want to know what VAT in Spain is on specific products, it is worth checking current regulations or consulting with a tax advisor.
What are the rules for VAT settlement for companies in Spain?
VAT settlement in Spain for companies is based on principles similar to those in other European Union countries. Every company registered in Spain that sells goods or services subject to VAT must regularly settle with the tax office. VAT in Spain is charged on the net value of sold goods and services and then VAT paid on purchases of materials or services necessary for business activity is deducted. In practice, this means that an entrepreneur transfers to the tax office the difference between VAT due and VAT deducted. It is important to remember that the VAT rate in Spain and settlement rules may vary depending on the type of activity and the company’s location. If you are interested in what the VAT tax in Spain is for your industry, it is advisable to use the help of a specialist.
How often should VAT returns be filed in Spain?
In Spain, VAT returns should be filed regularly, most often quarterly. However, for larger companies or enterprises with high turnover, the tax office may require monthly returns. This obligation applies to all entities registered as VAT payers in Spain. Timely submission of returns is key to avoiding penalties and interest for late payment. It is also worth remembering that the Spanish tax system allows for the electronic filing of declarations, which greatly facilitates the entire process. If you wonder what the VAT tax in Spain is and how often you have to settle, it is best to check the current guidelines on the tax office website or use accounting office services.
Where can you check the current VAT rates applicable in Spain?
The current VAT rates in Spain for 2025 can be checked on the official website of the Spanish Tax Agency (Agencia Tributaria). This is where all changes relating to VAT in Spain are published, including information about basic, reduced, and super reduced rates. It is worth regularly following this information, especially if you run a business or plan investments in Spain. Additionally, many accounting offices and industry portals publish updates concerning VAT in Spain. If you want to learn more about taxes in Spain, read our article: What taxes are paid in Spain?
Summary
VAT in Spain is a key element of the tax system that affects the daily lives of residents, entrepreneurs, and tourists. Knowing the current VAT rates for Spain in 2025, the rules for settlement, and filing deadlines helps avoid misunderstandings and ensures financial security. If you wonder what VAT in Spain is or how much VAT is in Spain, it is always worth referring to trusted sources and consulting with an expert. Thanks to this, running a business in Spain becomes easier and more predictable.
