France-Spain taxation: comparison 2026

Corporate tax: 25% at the standard rate, reduced regimes under conditions

In France, the normal rate of 25% has applied since financial years beginning in 2022. The reduced rate of 15% applies to the first €42,500 of profit per twelve-month period, in particular under conditions of turnover, release and ownership of capital. The social contribution of 3.3% on IS obeys its own conditions and a reduction: it does not transform the normal rate for all SMEs into 25.83%.

In Spain, a distinction must be made between the general rate, small businesses, micro-enterprises and newly created companies. The table below concerns the tax periods opening in 2026 and companies falling under the common regime; foral regimes and other specific situations require a separate analysis.

Official sources : DGFiP: corporate tax · Public Service: French reduced rate conditions · AEAT: corporate tax rate

VAT: 20% in mainland France and 21% in Spain

Normal rates are close, but treatment depends on the good or service and the place of taxation. The French reduced rates are notably 10% and 5.5%, with a particular rate of 2.1%. In Spain, the reduced rates are 10% and 4%, with a zero rate for certain operations. These Spanish benchmarks do not cover territories with separate indirect taxation.

An invoice between two companies in the European Union is not handled by simply choosing the lowest rate. Check the status of the parties, their VAT numbers, the nature of the flow, the place of taxation and any reverse charge rules. The excess thresholds depend on the plan and the activity: a single amount is not suitable for all companies.

For the budget, distinguish between recoverable VAT, non-recoverable VAT and the collection or reimbursement delay. A difference in rates is not necessarily a difference in final cost.

Official sources : Ministry of the Economy: VAT in France · AEAT: VAT rate in Spain

Social contributions: compare the employer cost item by item

A flat rate percentage of employer contributions does not allow two recruitments to be compared. The salary, status, ceilings, contract, activity and applicable reductions modify the calculation. It is also necessary to separate employer contributions from deductions borne by the employee.

Build two budgets over twelve months with the same position, the same level of experience and the same benefits. Add fixed and variable salary, employer contributions, benefits, recruitment and costs related to the organization. Keep the date and assumptions of each simulation. No annual savings per employee can be announced without this calculation.

Official sources : Urssaf: employer contributions simulator · Seguridad Social: general system contributions

Microenterprise, self-employed and Beckham regime: distinguishing beneficiaries

The French microenterprise regime concerns an individual activity and is not to be confused with the reduced corporate tax rate of a company. In Spain, the status of autónomo, its tax obligations and its contributions must be examined separately from the rules applicable to an SL. A reliable comparison starts from the status actually envisaged and its access conditions.

The Spanish impatriate regime, often called Beckham law, concerns eligible individuals. It does not reduce the corporate tax of a subsidiary. The reason for the trip, previous tax residence, the income concerned and the option period must be verified. Our Beckham diet guide details these points; the applicable rule is set out in Article 93 of the Spanish IRPF Law.

The manager's personal tax, the company's corporate tax and the cost of employees are three separate calculations. A residence or structure cannot be chosen by comparing only two marginal rates.

Official sources : BOE: article 93, regime of impatriates

Which organization to compare according to your activity?

Start with customers, teams, effective management, contracts and billing flows. Then encrypt the scenarios compatible with this operational reality. Creating a second company adds accounting obligations, management costs and intra-group operations to be documented.

For an activity in both countries, the guide to double taxation France-Spain helps identify issues to submit to tax advice. The financial management of a Spanish subsidiary concerns the organization of reporting, cash and responsibilities.

Is Spain still taxed less than France for a company?

No. The standard corporate tax rate is 25% in both countries. The final cost depends on the taxable profit, applicable regimes, teams, flows and structure. It is necessary to establish a simulation adapted to the activity.

Should we create a holding company to work between the two countries?

Not automatically. The need depends on shareholding, financing, activities and flows between companies. A turnover threshold alone is not enough to justify a holding company.

What can a Fractional CFO prepare?

The CFO gathers the data, quantifies the scenarios and their effects on cash flow, then coordinates discussions with accountants and tax advisors. Legal and tax choices are examined with these professionals before their implementation.