{"id":19981,"date":"2026-07-13T12:13:05","date_gmt":"2026-07-13T12:13:05","guid":{"rendered":"https:\/\/seegman.com\/pillar-two-in-spain-key-points-on-the-new-top-up-tax-for-large-groups\/"},"modified":"2026-07-13T14:57:34","modified_gmt":"2026-07-13T14:57:34","slug":"pillar-two-in-spain-key-points-on-the-new-top-up-tax-for-large-groups","status":"publish","type":"post","link":"https:\/\/seegman.com\/en\/pillar-two-in-spain-key-points-on-the-new-top-up-tax-for-large-groups\/","title":{"rendered":"Pillar Two in Spain: key points on the new Top-up Tax for large groups"},"content":{"rendered":"\t\t
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Pillar Two in Spain: key points on the new Top-up Tax for large groups<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The transposition in Spain of Council Directive (EU) 2022\/2523 of 15 December 2022<\/a>, on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union, has introduced the new Top-up Tax into Spanish law.<\/p>\n

This legislation, linked to the OECD\u2019s Pillar Two framework, aims to ensure that certain large groups are generally taxed at a minimum effective rate of 15% per jurisdiction. Its application requires groups to review not only their tax burden, but also their consolidation perimeter, available accounting information, internal reporting systems and coordination between tax, finance and legal teams.<\/p>\n

Although the application threshold focuses on large groups, the practical impact is not limited to calculating a potential tax liability. In many cases, the real challenge will be correctly identifying the entities affected, gathering the necessary information and documenting a coherent tax position across all relevant jurisdictions.<\/p>\n

Pillar Two should therefore be approached as a matter of tax compliance in Spain for international companies<\/a>, rather than merely as an isolated legislative development.<\/p>\n

What is Pillar Two and why is it being introduced in Spain?<\/strong><\/h2>\n

Pillar Two forms part of the international project promoted by the OECD and the G20 to address base erosion and profit shifting to low-tax or no-tax jurisdictions. Its objective is to establish a coordinated framework so that large multinational groups and certain large-scale domestic groups are subject to a minimum level of effective taxation.<\/p>\n

In the European Union, this objective was implemented through Directive (EU) 2022\/2523<\/a>, which creates a common framework to avoid a fragmented application of the global minimum tax rules among Member States.<\/p>\n

The system does not operate as a simple increase in the nominal Corporate Income Tax rate. Pillar Two is based on calculating the effective tax rate in each jurisdiction and, where that rate is below the 15% minimum, charging an additional or top-up tax to bring the taxation up to that threshold.<\/p>\n

The new Top-up Tax in Spain<\/strong><\/h2>\n

Spain has incorporated these rules through Law 7\/2024 of 20 December<\/a>, which establishes the Top-up Tax to ensure a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups.<\/p>\n

Subsequently, Royal Decree 252\/2025 of 1 April<\/a> approved the Top-up Tax Regulations, developing certain aspects of application, interpretation and coordination with OECD and European Union criteria.<\/p>\n

Spanish law configures the Top-up Tax as a direct tax of a personal nature. Its purpose is to tax the income of constituent entities of affected groups where they are located in jurisdictions with an effective tax rate, calculated on a jurisdictional basis, below the minimum rate.<\/p>\n

In practical terms, this means that affected groups must analyse whether the effective taxation of their entities in each jurisdiction falls below 15% and, if so, determine whether a top-up amount is due under any of the modalities provided for in the legislation.<\/p>\n

Which groups are affected by Pillar Two in Spain?<\/strong><\/h2>\n

The Top-up Tax applies to entities located in Spain that form part of multinational enterprise groups or large-scale domestic groups whose consolidated net turnover amounts to at least EUR 750 million in at least two of the four fiscal years immediately preceding the beginning of the fiscal year.<\/p>\n

This threshold is close to that used for Country-by-Country Reporting (CbCR), although Pillar Two introduces a different and more complex analysis: it is not limited to reporting, but may result in a top-up tax being charged where the effective tax rate of a jurisdiction does not reach the global minimum.<\/p>\n

Groups should therefore review, among other matters:<\/p>\n