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Organising Corporate and Personal Life in Spain

Company Taxation: the typical documents which we can lodge for you.



Retentions on Rental Payments


A company receives a bill to pay their landlord:

€ 6050,00 Rent for the month

€ 1089,00 add to this the VAT at 18%

€ 1149,50 subtract the retention of 19%

€ 5989,50 total to pay the landlord

The amount € 1149,50 is collected on behalf of the tax authorities as a down-payment on the tax due on the landlord. This is quite like the amounts of "income tax" or IRPF that you will be deducting from your employees. And similarly this money needs to be paid to the Agencia Tributaria at the end of every quarter.

Accounting Treatment

The retention is counted as a creditor, with the debit being added to rent paid. This creditor is normally cleared at the end of the quarter.

Tax Obligations

Every quarter a declaration 111 needs to be lodged, together with an NRC number, which is given to you by the bank, allowing the tax authorities to take the retentions out of your company account. This money collected is then a down-payment on the tax due by the landlord for the year.