Taxation for SMEs in Malaga: 5 keys to pay less taxes legally
Taxation is one of the main challenges for SMEs in Malaga and throughout Spain. According to studies, they account for 66% of employment and 62% of gross value added, but bureaucracy and regulatory complexity place them in a vulnerable situation.
At José Luis Rincón Abogados, we know that a proper tax strategy not only reduces costs, but also guarantees peace of mind and growth. Here are 5 practical and legal keys to pay less taxes and improve the viability of your SME.
1. Ongoing tax planning
The key to saving is not to react only at the end of the fiscal year, but to anticipate. A well-planned tax planning allows, among other things:
- Review cost and profit structure.
- Apply deductions and allowances as of January.
- Optimize investments, remuneration and provisions.
Tip: Schedule a quarterly review with your advisor to identify opportunities and avoid surprises, thus achieving better planning.
2. Take advantage of reduced corporate income tax rates.
The general rate for SMEs is 25%, but there are interesting exceptions:
- Rate of 15% during the first two years with positive taxable income for newly created SMEs.
- Incentives for innovative startups (15% for 4 years).
Note: meeting requirements (seniority, staff, business model) is essential to access these benefits, it is advisable to inquire about such requirements in case you can acquire these benefits.
3. Specific tax deductions and allowances
Incentives are available for SMEs:
- Accelerated amortization of low-cost assets or innovation.
- Freedom to amortize machinery or technology, especially in investment-intensive sectors.
- VAT exemptions for companies with a turnover of less than €85,000.
Tip: An annual accounting study can maximize these deductions by taking advantage of all the regulations.
4. Review and reclaim the IAE when applicable.
The Business Activity Tax (IAE) may not have been correctly applied in previous years. The Supreme Court has allowed companies to recover amounts unduly paid in previous years.
Recommendation: Request a report to check if you are entitled to a refund of IAE for previous periods.
5. Boost digitization to manage VAT and expenses.
Digitization is essential for:
- Facilitate invoice traceability.
- Recover VAT more efficiently.
- Prevent errors in tax returns.
Good examples: platforms such as Tickelia that automate expense management and VAT recovery.
Summary of tax savings for SMEs
| Key | Action | Benefit |
|---|---|---|
| Ongoing planning | Periodic reviews | Early deduction |
| Reduced rates | 15 % first years | Significant savings |
| Tax deductions | Amortization, allowance | Less taxable income |
| IAE claim | Historical revision | Possible refund |
| Digitization | Automate VAT and expenses | More tax efficiency |
How can we help you in Malaga?
At José Luis Rincón Abogados we offer comprehensive tax advice:
- Initial audit to identify opportunities.
- Design of a customized tax strategy.
- Management of tax returns, tax credits and refunds.
- Advice and representation before inspections.
- Digitalization of fiscal processes.
FAQ – Taxation for SMEs in Malaga
What deduction can I apply if I invest in technology?
You can apply accelerated depreciation or free depreciation, reducing taxable income immediately.
How to claim the IAE overpaid?
It files a reasoned brief based on the Supreme Court’s decision and requests a refund before the corresponding city council.
Can my SME be taxed at a 15% corporate income tax rate?
Yes, if you meet the requirements: new company with a positive taxable base and less than 2 years old.
José Luis Rincón Attorneys-at-Law
A well-managed taxation is much more than paying less: it is strengthening your SME, improving liquidity and ensuring growth. At José Luis Rincón Abogados, we offer you our experience in Malaga to turn regulations into a competitive advantage.
CTA: Do you want a tax audit for your SME? Schedule your consultation by contacting us and start saving today.