CS ChipSettle EU chip-design settlement
← 🇪🇸 Spain
IP box Active

Patent Box (reducción de rentas de intangibles)

Spain's nexus-conform patent box: up to a 60% reduction of net income from qualifying intangibles (patents, utility models, registered advanced software), lowering the effective rate on that income to about 10%.

3 Jul 2026

Key parameters

Reduction Up to 60% of net qualifying IP income
Effective rate ~10% on qualifying IP income
Qualifying IP Patents, utility models, registered advanced software, SPCs
Nexus Modified nexus ratio applies

Eligibility

HQ
Any headquarters country
Local presence
Local tax presence required (branch is sufficient) A branch office (Zweigniederlassung/permanent establishment) of your existing company is enough — you do not need to form a new legal entity such as a GmbH or BV.
R&D substance
Required
Company size
No size restriction
Revenue
Bounded above €750M (Pillar Two 15% floor)
Models
Fabless design, IP licensing, IDM, EDA / tools
Sectors
All
Goals
IP domiciliation; Additional design site in Europe

Income must derive from qualifying intangibles created by the taxpayer's own R&D (nexus). Above €750M group revenue the benefit is bounded by the 15% Pillar Two floor.

Mechanism & application

Rule-based entitlement — Legal entitlement — self-assessment, no case-by-case funding decision.

Applied in the corporate income tax return with nexus documentation; advance agreements available.

Timeline: Immediate (tax filing)

Legal basis & sources

Legal basis
Art. 23 LIS
Source
https://taxsummaries.pwc.com/spain/corporate/income-determination
Verification
PwC Tax Summaries / LIS Art. 23 (60% reduction → ~10%)
from 1 Jan 2018 until no expiry review 1 Jan 2027

Related