Tax on Economic Activities

General information


The Spanish tax on economic activities (Impuesto de Actividades Económicas - IAE) is a direct tax levied annually on the exercise of a business, professional, or artistic activity, regardless this activity is performed in business premises or not.


An official activity code will be provided upon registration of your business with the Spanish Tax Authorities for tax on economic activity purposes, then your business will become liable for taxes such as VAT Personal Income Tax…


Your business liability for the purpose of this tax will depend on various factors such as the type of work performed, the size of your business premises, head office location…


This tax is only levied against those companies that had two years ago a turnover over 1.000.000 €


If you have any question please email


Iglesias & Asociados, lawyers on the Costa del Sol, Malaga, Fuengirola, Mijas, Marbella, Alhaurin el Grande & Coín