In more than 90 countries

The consumer

Consumer Profile
The median age has risen sharply since 1970 and reached 45.8 years in 2022. The population is ageing very quickly and decreased by -0.04% between 2021 and 2022. Around 11.8% of the population is under 13 while 67.5% of the population is between 13 to 65 years old and 20.7% is over 65 years old (Data Reportal, 2022). On average, households are made up of 2.5 people in 2020; with 26.35% of households made up of only one person, 30.24% of two persons, 20.48% of three persons, 17.03% of four persons, and 5.91% of five persons or more (Instituto Nacional de Estadistica). Around 50.8% of the population are women. About 81.3% of the population lives in urban areas. Most of the population lives in the agglomerations along the Mediterranean and the Atlantic Ocean, but also in Madrid, Seville and Zaragoza. The three main cities in terms of population are Madrid, Barcelona and Valencia. The OECD estimates that 47.4% of adults aged 25 to 34 have a tertiary degree in Spain compared to 45.5% on average across OECD countries. On average, 36.4% of all upper secondary students enroll in Vocational Education and Training (VET) programmes in Spain, a lower proportion than the OECD average of 42.5%. Some 20.3% of the active population are working as service and sales workers, 19.6% are professionals, 12.4% have elementary occupations, 12% are technicians, 10.6% are craft workers, 10.6% are clerical support workers, 7.7% are plant and machine operators, 4% are managers, and 2.2% are agricultural workers (Eurostat, 2021).
Purchasing Power
The GDP per capita PPP is $ 37,756.4 in 2020, according to the latest data by the World Bank. Data from Spain’s statistical institute (INE, 2019) shows Spanish workers earn an average of €24,396 a year. The average gross salary for men is 26,934 euros, whereas for women is only 21,682 euros. The Gini index on income inequality is 34.3 in 2019 (World Bank). Purchasing power parity in Spain has been decreasing the last few years since wage developments have not kept pace with rising prices. According to the World Bank, in 2020, the purchasing power parity was 0.61 LCU per international dollars. In Spain, the average household net-adjusted disposable income per capita is USD 27,155 a year, less than the OECD average of USD 30,490 a year. In the context of the Covid-19 pandemic, private consumption dropped by -12% in volume in 2020, but it rebounded to 4.4% in 2021 (OECD).
Consumer Behaviour
Spain is a consumer society. As a result of the economic crisis and the level of unemployment, price has become one of the main purchase determinants. The ease of payment, promotions and effective customer service are other key factors. On average, the Spanish shops two to three times a week, although around 50% of sales take place on the weekend. Price hypersensitivity results in a lack of brand loyalty. 75% of Spaniards look for a bargain before buying something, while a quarter leave their regular retailer if they find lower prices elsewhere.

Television is one of the best media in Spain when it comes to spreading the news about brands. 99.7% of Spaniards own a television, but the television advertising industry is competitive and expensive. Radio is also very popular, as 60% of Spaniards listen to radio every day for at least two hours. About 85% of Internet users between the ages of 16 and 65 are active on social networks, and the opinion of an influencer or other consumers will sometimes influence purchasing decisions. Spaniards are among the Europeans most concerned about personal data protection with over 50% expressing their lack in confidence (Statista).

On average, Spaniards spend 328 euros a month on food and 554 euros a year on fashion items (Mordor Intelligence, 2020). There are 43.9 million internet users in Spain, making ecommerce a huge market. Ecommerce market value was estimated at USD 27 billion in 2021, and the most popular purchases on the internet are fashion items (ecommerceDB). Spain has embraced mobile shopping, which was estimated to account for 73% of e-commerce sales in 2021 (Ditrendia). Even if the imported products are widely consumed in Spain, the national products inspired by Spanish culture (in the packaging for example) are generally preferred.

Responsible consumption is developing in Spain. The number of consumers looking for more responsible products, traceability and better quality is increasing. The second-hand market is becoming increasingly popular among Spanish consumers. Collaborative economy platforms are developing in Spain and the Spanish Competition Authority (CNMC) has been supportive. Almost half of the surveyed Spaniards answered that they used the second-hand app Wallapop to purchase this type of products.
Consumer Recourse to Credit
In Spain, the vast majority of residents use debit cards to pay for goods and services. Credit cards are not as widespread but their use is growing. Overall household debt is down in Spain, reaching 60.8% of the country's GDP. This is due to the fact that mortgages are down, and that this has not been offset by the rise in consumer credit. Household debt is made up of around 80% mortgages and 20% consumer loans. The outstanding amount of these is 85 billion euros in 2018. Consumer loans are mainly used to finance vehicles, durable goods and holidays. Competition in the consumer credit market, with the arrival of digital platforms, is pushing credit institutions to make low-cost offers, and the demand for credit could therefore continue to increase. However, the central bank of Spain remains vigilant and considers that if it jeopardises banking stability it could intervene.
Growing Sectors
Leisure and culture, vehicles, accommodation and food services, furniture and carpets, telephones, education, home and garden equipment, clothing.
Consumers Associations
OCU , Organisation for Consumers and Users
CECU , Confédération des consommateurs et utilisateurs
FACUA , Federation of Active Consumers


Importing & Distributing

Import Procedures
As Spain is part of the EU countries, a common commercial policy is adopted to import/export most products. The Agencia Tributaria manages the Spanish customs service. It is responsible for the administration of customs procedures in Spain, the collection of taxes and VAT, work for the economic development of Spain, the control of illegal trade and are facilitators of real trade.

The official model for written declarations to customs is the Single Administrative Document (SAD). The SAD serves as the EU importer's declaration.  It encompasses both customs duties and VAT and is valid in all EU Member States.

As part of the "SAFE" standards advocated by the World Customs Organisation (WCO), the European Union has set up a new system of import controls, the "Import Control System" (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Programme eCustoms, has been in force since 1 January 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union. The EU recently introduced a new import control system called ICS2 to implement the EU customs pre-arrival security and safety programme.

Non-agricultural goods entering EU territory must adhere to customs formalities (ENS). This declaration must be carried out by the person bringing the goods to the territory. The Summary Declaration can be made electronically or on a form provided by the customs authorities. The deadline for lodging the ENS depends on the mode of transport carrying the goods.

Since July 1, 2009, all companies established outside of the EU are required to have an EORI number if they wish to lodge a customs declaration or an Entry/Exit Summary declaration. Once a company has received an EORI number, it can use it for exports to any of the 27 EU Member States.

Goods in transit only need a single EU transit document.

Inward processing is free of customs treatment. This procedure allows raw material (non-Union good) to enter temporarily without customs fees if it will be processed (or repaired) and re-export the finished products out of the EU territory. In this case, the importer gives a guarantee (from an insurance company or bank) equal to the amount of customs duties that would have been due on the imported raw material. This guarantee will be reimbursed when the final product is exported. This process also applies to goods planned to be re-exported. Only goods sold in the EU market are eligible to import duty and taxes.

For outward processing, duties and taxes apply only to the value added during the process. Only firms located in Spain or in the EU may take advantage of this measure.

The EU plans to introduce a new import control system called ICS2 that will start on 15 March 2021 to implement the EU customs pre-arrival security and safety programme.

For more information, please visit the website of the EU on customs policy.
Specific Import Procedures

The Union Custom Code - adopted on 9 October 2013 as Regulation (EU) No 952/2013 - Title V provides for the following customs simplifications:

  • Simplified declaration (Article 166 UCC)
  • Centralised clearance (Article 179 UCC)
  • Entry in the declarant's records (Article 182 UCC). This type of customs declaration is not allowed for all customs procedures (e.g. exclusion of transit).
  • Drawing-up of customs declarations for goods falling under different tariff subheadings ( Article 177 UCC)
  • Self-assessment (Article 185 UCC)
Distribution channels
Both globally and nationally, the scope and impact of COVID-19 remains uncertain and is rapidly evolving. The retail competitive landscape in Spain remained highly diversified in 2021, led by major grocery retailers. Grocery retail is the most important retail channel in Spain, representing more than half of total store-based retailing value sales. In 2020, the food processing industry recorded a turnover of $157 billion, accounting for 2% of GDP (USDA).

While hypermarkets and larger sized supermarkets control a large share of sales, small sized supermarkets located in urban areas are becoming ever more popular due to their proximity to the consumer (generally located within walking distance of residential and/or business areas). Supermarkets and self-service stores are consumers’ prefered channel, accounting for 47.6% of total food purchases in 2020 (MAPA). According to Euromonitor, in 2019, supermarket sales increased by 4% in current value terms to reach 60.3 billion euros. Supermarket sales are expected to increase 3% in the next five years.

Convenience stores are very popular for last minute purchases. The sales through this kind of store have largely benefited from increasingly busy lifestyles. The main advantage pointed out by convenience store consumers include their opening hours (open longer hours than other stores). However, these stores are going through a rough time due to their high prices.

Traditional markets are composed of corner grocery stores, open-air markets and regional markets. Wholesalers are the main suppliers for traditional markets. Usually, the corner grocery stores are family owned and located within residential and/or neighborhood areas. Although they are small, they usually carry a diversified range of food and cleaning products. Sanitary conditions are good and most have a small refrigeration area. Although their prices are usually higher than in any other type of outlet, they are quite popular for their high quality fresh produce and their proximity.

The leading online retail channel in 2020 remained Amazon with a 19.4% value share of the market (Agriculture and Agri-Food Canada). According to Euromonitor, food and drink products are the most popular product type sold via internet retailing in Spain. More families, particularly in the big urban areas, save time buying their groceries online. Still, the importance of internet retailing within grocery retailing has plenty of room to grow.
Distribution market players
Distribution in Spain is still characterized by a large number of retailers and traditional stores. Hypermarkets/supermarkets, convenience stores, major discount stores and specialized stores coexist with traditional corner grocery stores and open-air markets.

In 2021, grocery retail distribution was dominated by:
•    Mercadona SA (supermarkets) with EUR 25.5 billion sales in 2021 and 26.7% market shares
•    Carrefour (hypermarkets, supermarkets, discount stores) : 7.3% market shares
•    Grupo Eroski (hypermarkets and supermarkets) : 4.5% market shares
•    Auchan retail : 3% market shares
•    Lidl supermercados (discount store) : 5.8% market shares
•    Dia retail (discount store) : 5.4% market shares
•    Consum : 3.4% market shares

Retail Sector Organisations
National Association of Mass Distribution Companies (ANGED)
Spanish Food and Drink Industry Federation
Spanish Chamber of Commerce


Operating a Business

Type of companies

Sociedad de Responsabilidad Limitada or S.R.L. (limited liability company)
Number of partners: Minimum 1 partner.
Capital (max/min): 3,000 EUR minimum fully subscribed and paid upfront.
Shareholders and liability: Responsibility limited to the contribution amount.
Sociedad Anonima or S.A. (limited company)
Number of partners: Minimum 1 partner.
Capital (max/min): 60,000 EUR minimum, fully paid up minimum up to 25% of the total constituted amount.
Shareholders and liability: Responsibility limited to the contribution amount.
Sociedad Colectiva (company in a group's name)
Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is joint and several and unlimited towards third parties.
Sociedad comenditaria (Limited partnership company)
Number of partners: Minimum 2 partners. There are 2 types of partners, general partners and limited liability partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited liability for general partners; liability limited to the contribution amount for the limited liability partners.
Setting Up a Company Spain OECD
Procedures (number) 7.0 5.2
Time (days) 12.5 9.5

Source: Doing Business - Latest available data.


Cost of Labour

Minimum Wage
In 2022, the interprofessional minimum wage in Spain was 1,000 euros per month, or 33.3 euros per day (SEPE).
Average Wage
In 2020, the average annual salary was USD 37,922 (OECD).
Social Contributions
Social Security Contributions Paid By Employers: As of January 2022, the employer contribution is 29.9% for general contingencies, plus a variable rate for occupational accidents (e.g. 1.5% for office work).
Social Security Contributions Paid By Employees: The general contribution rates as of January 2022 are 6.35% for employees. 

Intellectual Property

National Organisations
Oficina Espanola de Patentes y Marcas for patents and trademark registrations.
Intellectual Property Central Registry
The competencies related to intellectual property were transferred to the Autonomous Communities which have their own registry, in coordination with the Intellectual Property Central Registry.
Regional Organisations
OEB, European Patent's Office,
EUIPO European Union Intellectual Property Office
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)


Tax Rates

Consumption Taxes

Nature of the Tax
Impuesto sobre el Valor Añadido (IVA) (Value-added tax - VAT)
Tax Rate
Reduced Tax Rate
For certain basic goods and services, a reduced VAT of 10% (e.g. food and drink for human or animal consumption, pharmaceutical products for animals, prescription glasses and contact lenses, certain medical equipment, services related to agricultural and livestock activities, residential dwellings, passenger transport, hotel and restaurant services, garbage collection, trade fairs and exhibitions, cinema tickets, cultural live shows/entertainment, supply of electricity (until 31 december 2024), supply of gas (until 31 march 2024), supply of briquettes and pellets of biomass and wood for firewood (until 30 june 2024)) or 4% (e.g. basic foodstuffs; books, journals and magazines; pharmaceutical products for humans; certain goods and services for handicapped persons; feminine hygiene and contraceptive products; public subsidized housing when it is delivered by the promoters, leases with an option to purchase public subsidized housing) applies.

As a special measure, olive and seed oils and pastas will be subject to a reduced rate of 5% until 30 June 2024.

Exports and international services provided to non-EU countries are zero-rated. Furthermore, a special reduced rate (0%) applies until June 30, 2024 to basic foodstuffs, including common bread (frozen dough included), bread-making flours, various types of milk, cheeses, eggs, and natural fruits, vegetables, legumes, tubers, and cereals.

Other Consumption Taxes
Excise duties are chargeable on most hydrocarbon oil products, alcoholic drinks, and tobacco products.

Special Tax on Certain Means of Transport (IEDMT) is required when registering a motor vehicle.

The transfer of real estate is also subject to a VAT of 21%, with a reduced rate for private residential property (10%) and individuals not in the VAT system (6% transfer tax).
In the Canary Islands, a specific tax is applied en lieu of VAT (Canary Island General Indirect Tax - IGIC), at a standard rate of 7% (other rates are 0%, 3%, 9.5%, 15% and 20%). In Ceuta and Melilla, a sales tax is applied instead of VAT.

A gift and inheritance tax is levied on the assets' net acquisition value with progressive rates (which may vary according to the region, generally between 7.65% and 34%). A tax is applied on gaming income.


Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
A company is resident in Spain and subject to corporate income tax on its worldwide income when: it has been incorporated in accordance with Spanish law, its registered office is in Spain, and/or its effective head office is in the country (i.e. when the business activities are managed and controlled from Spain).

If a company is established in a country or territory where no tax is levied or that is a tax haven, such company is deemed resident in Spain for taxation purposes if its core business activity is carried on in Spain or its main assets consist, directly or indirectly, of property located or rights fulfilled or exercised in Spain.

Capital Gains Taxation
Capital gains are usually included in taxable income and are taxed at the standard rate of corporate income tax (25%). 95% of capital gains are exempt from tax if a participation of at least 5% in the subsidiary is held for a one-year period before the disposal of shares, resulting in an effective tax rate of 1.25%. Until 1 January 2021, the 5% requirement was deemed to be met if the participation in the subsidiary exceeded EUR 20 million, but this rule no longer applies. Nevertheless, in fiscal years 2021 through 2025, taxpayers with shareholdings acquired before 2021 that had an acquisition value of over EUR 20 million but that do not meet the shareholding percentage of 5% may continue to apply the full exemption for dividends and capital gains (provided that the general requirements are met).
Main Allowable Deductions and Tax Credits
Business expenses are generally deductible if incurred for the purpose of earning a profit, are properly recorded and documented, and provided that a particular deductibility restriction or limitation does not apply. Payments of real property tax and local surcharges on these taxes are deductible in determining the corporate tax base. All salaries, wages and bonuses paid are generally deductible, as well as severance pay (this last one up to a limit of EUR 1 million/employee). Bad debts are deductible, provided certain conditions are met.
Donations are non-deductible for CIT purposes, but a 40% tax credit is available for donations to qualified non-profits. If donations to the same entity meet or exceed previous years' amounts for two consecutive years, the credit increases to 50%. This credit is not capped at 25% of the donating company's gross tax payable (minus certain deductions). The tax credit base cannot exceed 15% of taxable income, with excesses carried forward for ten years. For listed priority sponsorship activities, the credit may increase by 5%, and the base limit can rise to 20%.

Taxes beyond CIT, like business and professional activities taxes (excluding withholdings), are deductible expenses if they're recorded as such due to their nature. Sometimes, indirect taxes such as non-deductible VAT or transfer tax can be included in asset values for depreciation purposes. Penalties for tax non-payment and late filing/payment surcharges or other tax violations are not tax-deductible.

Tax losses can be carried forward indefinitely, but generally not carried back. There are no specific tax loss categories like operating or capital. Companies with a turnover under EUR 10 million can reduce their taxable income by up to 10% by creating a reserve for levelling off tax losses, capped at EUR 1 million, and reversible within five years. Tax losses can offset future positive income, with the offset limit depending on the company's prior 12-month net turnover. If under EUR 20 million, losses can offset up to 70% of the tax base. For turnover between EUR 20 million and EUR 60 million, the limit is 50%, and for turnover over EUR 60 million, it's 25%. However, up to EUR 1 million in tax losses can always be offset without limit. These limits do not apply if the company is dissolved, except in tax-neutral restructurings, or if the income comes from debt relief or deferral agreements with creditors. Complex rules may restrict the use of tax-loss carryforwards after company restructuring or a change in shareholders.

Tax incentives are provided for R&D (25%, or 42% if the expenses are higher than the average R&D expenses incurred by the company during the previous two years) and technological innovation of existing products (12% of the costs). An additional tax credit of 17% can be availed of for staff expenses incurred for staff exclusively carrying out and qualified to carry out R&D activities. Special tax treatment is also given to venture capital companies and funds.

Other Corporate Taxes
Shareholders are subject to a 1% capital duty tax on capital reductions and company dissolution. Payroll tax, real property tax (with rates depending on the region and the property value) and stamp duty (0.5% for all notarized document, ranges from 0.75% to 1.5% for other transactions depending on the region and the type of transaction) also apply. A hydrocarbons tax relating to the exploration, research and exploitation of hydrocarbons is also in force.

A transfer tax, ranging from 6% to 11%, depending upon the region, is generally levied on inter vivos transfers, including real estate transfers and real estate leases that are exempt from VAT. Transfers of shares generally are exempt from transfer tax. Companies resident in a tax haven for tax purposes that own real estate or hold real property rights in Spain are subject to a tax equal to 3% of the assessed value of the real estate.

The employer contributes 30.48% of the employee’s wages for social security (24.18% for common contingencies, 5.5% for unemployment, 0.2% for the salary guarantee fund, and 0.6% for professional training), plus a contribution for professional contingencies ranging between 1.5% and 7.15%, depending on the type of activity. The maximum monthly contribution base is EUR 4,720.50 in 2024.

A 3% tax applies to specific digital services (such as online advertising, online intermediary services, and data transmission) provided to users in Spain. Taxpayers include entities, whether Spanish tax residents or not, whose total income in the previous tax year exceeds EUR 750 million, or whose income from digital services in Spain exceeds EUR 3 million. For entities in a corporate group, thresholds are determined collectively.

For 2023-2025, a temporary energy levy is imposed on key players in the energy sectors and on individuals or entities engaged in crude oil or natural gas production, coal mining, or oil refining in Spain, with some exceptions. Set at 1.2% of net turnover from activities in Spain for the preceding year, it has to be paid in advance and was non-deductible for CIT purposes. The levy could not be passed on economically, directly or indirectly. For CIT tax groups, the net turnover comprised the total turnover of the group's member entities.

In 2023-2025, the temporary levy on credit institutions and financial credit institutions applied to those operating in Spain whose combined interest income and commissions for 2019, as per their accounting rules, totaled EUR 800 million or more. For CIT tax groups, the income included the sum of all group entities' incomes. The levy, set at 4.8% of the net interest income and commission income and expenses from Spanish activities, was paid in advance and not deductible for CIT. It couldn't be economically passed on.

Other taxes include: real estate tax (levied annually by the local authorities), a local tax levied on the increase in the value of urban land (applied at the time of the sale of the urban real estate), a motor vehicle tax, and waste collection fees.

Other Domestic Resources
Spanish Tax Agency

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of double taxation agreements signed by Spain
Withholding Taxes
Dividends: 19%; Interest: 19%; Royalties: 0 (if qualified as business income, when paid to resident companies)/19% for residents of the EU/EEA and 24% for all other non-residents, unless otherwise provided in a tax treaty.