The Spanish tax landscape for 2026 brings significant changes that every growing business needs to understand and anticipate. From adjustments to tax rates to new incentives for internationalisation, tax planning has become more than ever a critical strategic tool.
Key Tax Developments for 2026
The tax reform approved at the end of 2025 introduces relevant adjustments to Corporate Income Tax. Companies with turnover below ten million euros will be able to benefit from an extended reduced rate, provided they meet certain requirements around job creation and profit reinvestment. R&D deductions are also strengthened, with more generous percentages for projects incorporating artificial intelligence and sustainable technologies.
For SMEs taxed at the standard 25% rate, combining the reduced rate with the capitalisation reserve and the equalisation reserve can translate into a materially lower effective tax burden. The equalisation reserve allows a reduction of the taxable base of up to 10% (with a maximum of one million euros per year), with the effect of bringing forward the offset of future losses or deferring tax for up to five years.
R&D Deductions with an Artificial Intelligence Component
The strengthening of R&D deductions is one of the most significant developments of 2026. Projects incorporating components of artificial intelligence, machine learning or big data processing can qualify for enhanced deduction percentages: up to 30% of research and development expenditure incurred in the year, and up to 50% of the excess over the average of the two prior years.
To apply these deductions with full legal certainty, it is advisable to obtain a reasoned report from the Ministry of Science and Innovation certifying the R&D or technological innovation nature of the project. This report is binding on the AEAT as to the project’s classification, though not as to the deductible amount.
Companies without sufficient tax liability to apply the deduction in the current year may request it to be applied against the annual CIT refund or carry it forward over the following eighteen years — making it a valuable tool even for companies in an investment phase or with temporarily negative results.
Impact on Growing Businesses
For companies in a growth phase, tax planning takes on a particularly critical dimension. Expansion into new markets, the onboarding of international talent and investment in productive assets generate tax opportunities that, when well managed, can deliver material savings. They also increase the complexity of regulatory compliance.
It is essential to review the corporate structure and cash flows to ensure the tax burden is optimised within the legal framework. Coordination between domestic and international taxation is particularly relevant in cross-border transactions, where double taxation treaties and EU directives offer efficiency mechanisms that should not be overlooked. Our tax planning service helps identify these opportunities in a systematic way.
Businesses operating in several EU countries should pay close attention to the implications of the OECD Pillar Two framework (15% global minimum rate), which applies to multinational groups with consolidated revenue above €750 million. Although SMEs do not reach this threshold, membership of a larger group may bring them within scope.
Internationalisation Tax Incentives
The tax regime for businesses taking the international step is particularly favourable in Spain. The foreign dividend and capital gains exemption (Article 21 of the CIT Act) allows dividends received from foreign subsidiaries to be taxed at 0%, subject to certain conditions on ownership and activity. For businesses in the process of internationalising, correctly structuring the holding of foreign shareholdings from the outset can save millions in effective tax.
The special regime of the Canary Islands Special Zone (ZEC) offers a CIT rate of 4% for activities carried out materially in the Canary Islands, with a variable taxable base cap depending on headcount. For technology or digital services businesses that can establish operations on the islands, the ZEC can represent a very significant tax advantage before the registration deadline expires in December 2026.
Recommended Strategies
At BMC we recommend our clients adopt a proactive approach. This means conducting a comprehensive tax review before the end of the first quarter, identifying applicable deductions and allowances, and establishing a tax obligation calendar that avoids surprises. Digitalising accounting processes and integrating real-time tax reporting tools are investments that pay for themselves quickly.
The main planning actions for 2026 are:
- Review whether the company meets the requirements for the reduced CIT rate and, if so, manage the required job creation and reinvestment.
- Identify and document R&D projects to maximise tax deductions, requesting a reasoned report where appropriate.
- Analyse the structure for holding foreign shareholdings before receiving dividends or realising capital gains.
- Assess whether joining the ZEC regime is viable for the company’s activities.
- Update the tax obligation calendar to incorporate the new deadlines arising from the reform, in coordination with the tax compliance service.
Looking Ahead
The tax environment will continue to evolve with the progressive implementation of the OECD Pillar Two framework and new fiscal transparency obligations. Businesses that embed tax planning as part of their corporate strategy will be better positioned to grow sustainably and competitively.
At BMC, our tax team works side by side with our clients to turn regulatory complexity into competitive advantage. If you need guidance on how these developments affect your business, do not hesitate to get in touch.
Specific Regulatory Framework: Key Rules for 2026 Tax Planning
Tax planning for 2026 must take into account the regulatory changes accumulated over recent years, which materially alter the tax landscape for businesses and individuals.
Corporate Income Tax Act (Law 27/2014 of 27 November, BOE 28 November 2014): Article 25 LIS regulates the capitalisation reserve: companies that increase their equity without distributing dividends are entitled to a reduction in the taxable base equal to 10% of the increase. Article 26 regulates the equalisation reserve for entities of reduced dimension (Articles 101–105 LIS): a reduction of up to 10% of the positive taxable base, capped at €1M, deferred for five years. Articles 35–37 regulate the R&D deductions: 25% of R&D expenditure, 42% if it exceeds the average of the two prior years, and 12% for technological innovation activities. Article 91 regulates controlled foreign corporation rules applicable to income obtained by entities controlled by Spanish residents.
Personal Income Tax Act (Law 35/2006 of 28 November, BOE 29 November 2006): Article 17 LIRPF establishes the reductions applicable to employment income, including the employment income reduction (Article 20 LIRPF), which in 2026 is maintained for taxpayers with net employment income below €19,747.50. Article 38 LIRPF regulates the exemption for reinvestment in a principal residence. Article 38 bis regulates the gain exemption on reinvestment in newly created companies (angel investors). Articles 49–53 LIRPF regulate the taxation of savings capital gains: 19% (up to €6,000), 21% (€6,001–€50,000), 23% (€50,001–€200,000), 27% (€200,001–€300,000) and 28% (above €300,000, 2026 scale).
ZEC Regime (Canary Islands Special Zone, Law 19/1994, as amended): Article 31 of Law 19/1994 establishes the 4% CIT rate for ZEC entities, versus the general 25% rate. The ZEC is an EU-approved incentive running until 31 December 2027 (transitional provision, Royal Decree 1001/2024). ZEC entities must be registered in the Official Register of ZEC Entities, have their registered office and effective management seat in the Canary Islands, create a minimum number of jobs (3 for the main islands, 5 for the others) and invest at least €100,000 in fixed assets.
Royal Decree 862/2025 of 30 September (BOE 1 October 2025) — Transfer Pricing: Updates the CIT Regulations regarding transfer pricing documentation for related-party transactions exceeding €250,000 per year (LIS Article 18). Modelo 232 (the informational return for related-party transactions) must be filed in the month following the 10-month anniversary of the year-end. Non-compliance is penalised at €1,000 per omitted or incorrect data item (General Tax Act, Article 199).
OECD Pillar Two — Global Minimum Top-up Tax: Law 7/2024 of 20 December (BOE 21 December 2024) transposes EU Directive 2022/2523, establishing a minimum top-up tax of at least 15% on the profits of multinational groups with revenue above €750M. For 2026, affected groups are already in full operation of the Spanish QDMTT (Qualified Domestic Top-Up Tax) and the IIR (Income Inclusion Rule). Tax planning for multinational groups must incorporate this pillar.
Practical Example: Integrated Tax Planning for a Mid-Sized Industrial Company
Company: Fabricaciones del Guadalquivir, S.L. — industrial company, 95 employees, €7.8M revenue, EBITDA €1.2M, provisional CIT taxable base for 2026 of €820,000 (before planning measures).
Tax planning measures applied:
| Measure | Legal basis | Saving (EUR) |
|---|---|---|
| Capitalisation reserve (10% of €180,000 equity increase) | LIS Art. 25 | 4,500 |
| Equalisation reserve (10% of taxable base, €1M cap) | LIS Art. 104 | 18,000 |
| R&D deduction (expenditure €85,000 × 25%) | LIS Art. 35 | 21,250 |
| Accelerated depreciation of new assets (coefficient × 2 for ERD) | LIS Art. 103 | 8,400 |
| Reduced 23% rate for entity of reduced dimension (turnover < €10M) | LIS Art. 29.1 | 16,400 |
| Total tax saving | €68,550 |
CIT liability without planning: €205,000 (25%). CIT liability with planning: €136,450. Tax efficiency ratio: 33%.
Common Mistakes in Corporate Tax Planning
Mistake 1 — Planning only at year-end (December): The most effective tax planning measures require time: the capitalisation reserve requires not distributing dividends during the year; the R&D deduction requires documenting projects throughout the year; the ZEC requires prior registration. Starting planning in December limits the options available to measures with immediate effect only.
Mistake 2 — Not making use of the entity of reduced dimension (ERD) regime: Companies with net turnover below €10M have access to the special regime under Chapter XI of Title VII of the CIT Act (Articles 101–105), which includes: the 23% reduced rate on the first €1M of taxable base (Article 29.1 LIS for micro-enterprises with taxable base < €1M), accelerated depreciation (Article 103), free depreciation linked to job creation (Article 102) and the equalisation reserve (Article 104). Many advisers apply only the standard rate without checking whether the company qualifies as an ERD.
Mistake 3 — Ignoring transfer pricing in family groups: Transactions between related persons or entities (LIS Article 18) must be valued at arm’s length and documented if they exceed €250,000 per year. In family groups where the company rents assets to shareholders or pays for services from group entities, ignoring transfer pricing rules can give rise to substantial tax assessments plus interest for late payment and the 15% surcharge under the General Tax Act.
Mistake 4 — Not requesting the reasoned report for the R&D deduction: The Tax Agency may challenge whether an activity genuinely constitutes R&D within the meaning of Article 35 LIS. Requesting a reasoned report from the Ministry of Science and Innovation (Article 35.4 LIS) is binding on the AEAT and provides complete legal certainty for the deduction. Failing to request one when projects are borderline is a risk that costs more on inspection than the report itself.
Mistake 5 — Failing to check whether dividends received from foreign subsidiaries are exempt: Article 21 LIS provides for the exemption of income from the transfer of shareholdings and dividends received from foreign subsidiaries held at a minimum of 5%, where the subsidiary has paid tax at a rate not below 10% abroad. Failing to apply this exemption and being taxed twice — in the subsidiary’s country and in Spain — is an avoidable mistake that BMC frequently identifies during tax planning reviews.
Next Steps to Optimise Your Business Tax Position for 2026
- Draw up an annual tax calendar: include all periodic obligations (quarterly VAT, monthly/quarterly withholding returns, CIT instalment payments, informational returns) with their deadlines and the relevant forms; assign internal and external responsibilities.
- Review eligibility for the ERD regime: verify whether the prior year’s turnover and the average of the three preceding years is below €10M; if so, ensure all special regime tax benefits are being applied.
- Document R&D projects throughout the year: record R&D expenditure in detail (staff hours, materials, research contracts) to support the Article 35 LIS deduction in the event of an inspection.
- Plan shareholder-director remuneration: analyse whether the shareholder-director’s remuneration is correctly provided for in the articles of association (Companies Act, Article 217) and whether the combination of salary and dividend is tax-optimised, taking into account both CIT and the shareholder’s personal income tax rates.
- Assess tax deferral options: evaluate whether the equalisation reserve or the reinvestment of capital gains in new assets (Article 42 LIS) can be applied to transactions planned during the year, to defer CIT payment without incurring tax debt.
At BMC we design integrated tax planning strategies for businesses of all sizes, coordinating CIT, shareholders’ personal income tax and international taxes. Request a tax review for your business.