Own taxation system

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Navarra has a high level of self-government, and this means it has been able to maintain its own, differentiated taxation system:

  • Low tax rates for companies
  • Good tax breaks to encourage investment in productive systems
  • Navarra offers lower tax rates than the Spanish average
  • In relation to GDP, taxes are lower than in the European Union

The average tax rate in Navarra for companies is between 19-25%, lower than the average rate for Spain (25-28%).

Corporate tax system

NAVARRA
SPAIN
Large Firm
28%
SME
23%
 25%
Micro SME
19%

The main tax breaks are:

NAVARRA
SPAIN
R&D
40%
25%
Investment in fixed assets
10%
0%
Job creation (per person)
5.000-6.800€
3.000€
Technological innovation activities
15%
12%
Deduction for investment in renewable energy
15%
Tax incentive for film and audiovisual prodution
35%
15%

Tax Depreciation:

Navarra has freedom of depreciation and special plans for tax depreciation.

  • In general, on comparing the tables of amortizations from Spain and Navarra, types in Navarra exceed two or three points the Spanish average in most cases
  • Specifically, there is freedom of depreciation for elements of tangible fixed assets whose unit value does not exceed €1,800 and elements related to R&D exclusively and permanently. In the case of buildings, the parts that are related to R&D activities.

 

Reductions on the tax base:”Special reserve for investments”

45% of the amounts accountable for a special investment reserve can be reduced from the tax base, with a limit of 40% of the taxable base.

  • The minimum amount provided for the financial year is €50,000.
  • Th amount allocated to the reserve must be invested within two years from the closing of the year in which profits for the reserve were provided
  • The amount will need to be invested in new tangible fixed assets, excluding land, linked to the development of an economic activity. These elements must remain in operation int the taxpayer´s facilities for at least 5 years

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NAVARRA IS STRONG…

Thanks to its singular character, a consequence of its historical tradition marked by its Fueros (a kind of Magna Carta) that have been applied over the centuries and are largely still in force. This benefits companies who set up here thanks to the region’s own and differentiated
taxation system.

CONTACT

Avda. Carlos III, 36, 1ºdcha.
T. (+34) 848421942
F. (+34) 848421943
info@investinnavarra.com

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Avda. Carlos III, 36, 1ºdcha.
T. (+34) 848 421942
F. (+34) 848 421943
info@investinnavarra.com

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