Spain has launched three new taxes in 2025 under Law 7/2024, bringing significant changes for multinational corporations, financial institutions, and the tobacco industry. These tax reforms align with global trends in corporate taxation, financial sector contributions, and public health policies.
If you’re running a business in Spain or operating internationally, understanding these changes is essential for compliance, financial planning, and strategic decision-making.
Let’s break it all down.
Overview: The Three New Taxes in Spain
1️⃣ Complementary Tax – Minimum Global Tax for Large Companies
- Targets multinational and large national corporate groups.
- Ensures companies pay a minimum level of taxation, preventing tax avoidance.
- Aligns Spain with the OECD’s Global Minimum Tax (Pillar Two), which sets a 15% minimum tax rate for large companies.
- Who is affected? Large corporations with annual revenues above €750 million.
Business Impact
✅ Companies with complex international tax structures may need to adjust their financial planning.
✅ Tax havens and low-tax jurisdictions will be less attractive for tax optimization.
✅ Compliance costs will rise, requiring stronger tax planning and reporting measures.
2️⃣ New Tax on Financial Institutions – Higher Contributions from Banks
- Targets specific financial entities, taxing their interest margin and commissions.
- Seeks to ensure banks contribute more after benefiting from higher interest rates in recent years.
- Follows similar policies in Italy and the UK, which have introduced windfall taxes on banks.
Business Impact
✅ Spanish banks may increase fees or loan interest rates to offset this new tax.
✅ Potential impact on corporate lending and business credit availability.
✅ Financial institutions with a strong domestic presence will be more affected than international banks.
3️⃣ Tax on E-Cigarette Liquids & Tobacco Products – Public Health & Revenue Measure
- Expands taxation on electronic cigarette liquids and other tobacco-related products.
- Aims to reduce smoking and vaping rates in line with EU public health policies.
- Brings Spain closer to France and Germany, which already have higher taxes on vaping products.
Business Impact
✅ Tobacco and e-cigarette businesses will face higher costs, potentially passing these on to consumers.
✅ Possible shift in market demand toward traditional nicotine alternatives or reduced-risk products.
✅ International tobacco companies may reassess Spain’s market attractiveness for expansion.
How Do These Taxes Compare to Other Countries?
Spain is not alone in implementing these tax changes. Similar policies exist across Europe and beyond:
| Country | Corporate Minimum Tax | Bank Tax | E-Cigarette Tax |
|---|---|---|---|
| EU (OECD) | 15% minimum tax (OECD) | No EU-wide tax, but national-level bank levies exist | Some countries tax e-liquids |
| France | 15% global minimum tax | Bank tax on financial transactions | High taxes on e-cigarette liquids |
| Germany | 15% global minimum tax | No specific windfall bank tax | Higher taxes on e-liquids & tobacco |
| Italy | 15% global minimum tax | Extraordinary bank tax introduced in 2023 | Expanding e-cigarette taxation |
| USA | 15% minimum corporate tax (Inflation Reduction Act) | No federal bank tax | Regulated but taxed at state level |
Spain is following the global trend of higher corporate taxation and targeted industry levies to increase government revenues and promote social policies.
Expert Insights – What Business Leaders Need to Know
Tax Experts: “Compliance Costs Will Rise for Multinationals”
Tax professionals emphasize that multinational companies must upgrade their tax strategies to comply with Spain’s new global minimum tax rules.
“This is part of a broader trend in Europe, but Spanish businesses must act fast. The compliance burden will increase, and companies with operations in multiple countries will need to rethink tax structures.”
Banking Sector: “Higher Costs Could Impact Loans & Business Financing”
Spanish banks are analyzing whether they need to adjust lending policies due to the new tax on interest margins and commissions.
“While this tax mainly affects big banks, it could have a ripple effect on business lending rates. Companies relying on financing should monitor any potential changes in loan conditions.”
Tobacco Industry: “E-Cigarette Market Faces New Challenges”
Spain’s new e-cigarette tax adds pressure to the already highly regulated tobacco industry.
“Spain is following France and Germany in discouraging vaping through taxation. E-cigarette brands will likely pass these costs onto consumers, which may slow market growth.”
Future Outlook – Could These Taxes Become Permanent?
Although these taxes were introduced as part of 2025 fiscal measures, some experts believe they could become permanent:
- The OECD global tax framework is already pushing for long-term global minimum taxation.
- Financial sector taxes may expand if banks continue to see strong profits.
- E-cigarette and tobacco taxes will likely increase further as part of EU public health policies.
What This Means for Businesses → Companies must prepare for potentially long-term tax burdens and adapt business models accordingly.
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