Tax: Spain

The sale of an aircraft in Spain constitutes a supply of goods subject to Value Added Tax at the general rate of 21%.  

However, under Spanish Law, the delivery, transformation, maintenance of aircraft, time-charter and lease of aircraft is exempt of VAT if the aircraft is supplied for the use in international air transportation, meaning that more than 50% of the total navigation distance is incurred in international destinations. 

Aircraft acquisition or transfer of title made by an operator in Spain to another operator in an EU member State would be considered, from a Spanish VAT perspective, as an intra-community acquisition of goods. In this sense, to the extent that the aircraft is used in international air transport, it would be tax exempt. Should this not be the case, the tax would be assessed via the reverse charge mechanism.

If a purchase or transfer of title is made by a foreign non-EU operator, this would be an exportation exempt from Spanish VAT as long the delivery of goods would be made outside the VAT territory. If the delivery takes place inside VAT territory, in order not to charge VAT to the buyer, the seller must obtain a proof of transportation of the good outside VAT territory.  

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Yes, as established by EU common importation regulations and tariffs.  

The importation of an aircraft would accrue Spanish VAT upon customs clearance. However, the importation may be VAT exempt if it is made by a qualifying international airline for the use in international transport. 

According to the Spanish Stamp Duty legislation, the registration of mortgages, reflected on public deeds, in the Commercial Registry or Moveable Assets Registry, are subject to Stamp Duty at a 0,5/1% rate of the value declared. 

Under the Spanish Stamp duty legislation, the emission of promissory notes is taxed at a progressive rate of 0,018.-€ for each 6,01.-€ of the promissory note value.  

Registration taxes are levied for private aircraft. A 11-15% tax rate is levied on the aircraft market value (excluding VAT), depending on the autonomous community. The tax is due at the moment of the aircraft registration.  

Commercial aircraft registered exclusively for commercial aviation purposes may be tax exempt as well as medical and government aircraft.  

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Yes 

Spanish source royalty payments are normally taxed at a 24% withholding tax rate (19% tax rate applies for EU countries) unless a double tax treaty between Spain and the country of residence of the recipient exists. This may reduce that rate, to even zero.  

Intragroup royalty payments may be subject to a 0% withholding tax rate for EU lessors if certain requirements apply.  

The sole operation and use of a commercial aircraft would not levy, in principle, any taxation at source. However, a substantial physical presence of the operator in Spain might eventually constitute a permanent establishment, which would trigger full tax consequences.  

The use of corporate owned planes by individuals might generate income in kind taxable under the individual income tax. 

VAT and registration tax would be levied upon the purchase of private aircraft.  

Private airplanes should be disclosed in the net worth tax return of an individual owner. 

A 0% withholding tax rate is applicable to interest payments to EU-based lenders. 

In other cases, interest payments to foreign companies are normally taxed at a 19% withholding tax rate if no double tax treaty is in force between Spain and the country of residency of the lender.  

Carbon Emissions Scheme – From 2012 onwards, the Aviation Emissions Directive is in force. This Directive provides that EU emissions Trading Scheme shall apply to all aircraft flying to and from the EU. Aircraft operators are allocated a limited right to emit carbon and are required to purchase additional rights if their emissions exceed the rights granted.  

The autonomous region of Catalonia has its proper N2O emissions tax. Please note that this tax has been challenged and is under court review.  

Passenger, PRMs and Security charges apply for the provision of airport facilities. The taxpayer are the Airlines, administrations, organizations and individuals carrying passengers who board at an airport managed by Aena. The amount of these charges is surcharged to the passengers on the ticket price. Rates depend on the Spanish departure airport and the aircraft destination. 

Fuel tax would exclusively apply to corporate and private aviation.

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