Partially Exempt Entities (IS)

The partially exempt entity regime, in Chapter XIV of Title VII of Spain's Corporate Tax Act, applies to non-profit entities not eligible for Ley 49/2002. It's the default regime for most amateur sports clubs.

How it works: revenues from the non-profit statutory activity (member fees, earmarked donations) are exempt from corporate tax. Revenues from economic activities (sponsorship, bar, rental, merchandise) are taxable at the reduced 25% rate (with the possibility of lower rates in specific cases). If non-exempt revenue does not exceed certain thresholds, there is no obligation to file Modelo 200.

Default regime for non-profit amateur sports clubs. To access the more favourable Ley 49/2002 special regime, the entity must have been declared of public utility by the Ministry of the Interior — a long, demanding procedure justified only for large entities. Hence most clubs are partially exempt entities.

If you care about this term, you probably also wonder about these:

• Modelo 200 (Spanish Corporate Tax Return)

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• VAT Exemption on Member Fees

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• Ley 49/2002 (Public Utility Regime)

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• Non-profit Spanish Accounting Plan (PGC)

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Long-form guides and product pages where we cover this topic in depth:

• Sports-club taxation: VAT, IS and member fees (2026)

  Full guide