Undertakings by economic activity heading: IAE

It is a municipal ownership tax, periodic and mandatory in all municipalities, which taxes the realisation of any type of economic activity. The taxable event consists of the mere exercise of economic activities (understood as such the carrying out of business, professional or artistic activities when it involves the organisation on their own account of means of production and of human resources or of one of both, in order to intervene in the production or distribution of service goods, thus leaving out the dependent employment relationships between a person who works) in national territory. Following the establishment of various exemptions in the IAE, legal persons and entities referred to in Article 35.4 of the General Tax Law (existing inheritances, communities of property, civil companies, etc.) who carry out economic activities on national territory are obliged to pay this tax, provided that the net amount of turnover exceeds the amount of EUR 1 000 000. Individuals are exempt. The IAE is paid in the municipality where the activity is carried out. This portal details only statistics of obliged to pay this tax and managed by the City of Madrid.