The net income of a Spanish entity is taxed at 30%. When investing through a real estate investment fund or company, a reduced rate of 1% applies. The Spanish REIT (SOCIMI) is subject to a corporate income tax of 19%, and is applicable to qualifying subsidiaries of REITs listed in the EU or EEA.
The financial expenses-capping rule limits tax relief for net financial expense to 30% of the operating profit, with a minimum of EUR 1m treated as tax deductible. Financial expenses disallowed can be carried forward for 18 years, increasing the interest expense in the subsequent years, which will be subject to the 30% limit (with the exception of the period of liquidation and winding up.
Generally, an annual 2% depreciation charge on property (exclusive of land) is allowed. The depreciation charge allowed for industrial buildings is 3%. Depreciation rates can be doubled in the case of buildings considered as used assets, i.e. of more than ten years.
Source : PWC