According to the Bank of Spain, nearly 100 million transactions with corporate cards occurred during the first quarter of 2025. This is 12% more than in the fourth quarter of 2023, which had nearly 89 million transactions.

Corporate cards offer a variety of unique benefits. This explains why more and more Spanish businesses are introducing them into financial strategies. In this article, we explain how corporate cards work and how to make the most of their benefits.

What’s in this article?

• What are corporate cards?
  
• What types of corporate cards are there?
  
• How do corporate cards work?
  
• Which expenses should not be charged on corporate cards?
  
• Corporate card use in Spain
  
• FAQs about corporate cards in Spain
  

What are corporate cards?

A corporate card is a specific type of credit or debit card linked to a business bank account. Traditionally, only financial entities were able to issue these cards, such as banks or card networks. However, there are currently payment service providers that also have corporate card programs, such as Stripe Issuing.

Once the cards have been issued, businesses make them available for use. Employees can use them to manage expenses associated with professional activities, such as trips or meals. Corporate cards also allow employees to forgo the typical reimbursement process for business expenses. Instead, they can make purchases with the corporate card, and the amount is deducted directly from the company account.

What types of corporate cards are there?

Corporate cards are classified by their payment method (i.e., credit, debit, or prepaid) and by their form (i.e., virtual or physical). Here are the features of each:

Types of corporate card by payment method

Credit
Credit cards enable you to make deferred payments (i.e., postpone payments of purchases) and access a credit line to cover business expenses. This can occur even if the business doesn’t have the necessary funds. This flexibility in the management of expenses can allow businesses to maintain better liquidity in the business account. However, the accumulation of credit card debt could pose a risk if the company doesn’t maintain regular and thorough control of spending.

Debit
Even though corporate credit cards are the most common globally, corporate debit cards are generally preferred in Spain. In 2025, around €2.8 billion in corporate credit card payments were processed, while corporate debit cards were used to pay just over €3 billion, about 8% more. These cards only allow businesses to spend the funds available in the company bank account. This way, the company does not accumulate debt. However, debit cards usually have stricter limits than credit cards.

Prepaid
Prepaid cards allow businesses to spend funds previously added to the card as a balance. Unlike the other two types of corporate cards, prepaid cards usually do not require linking to a bank account.

Types of credit card by form

Physical
Physical corporate cards are practically identical to conventional credit or debit cards. Issuers of corporate cards usually allow the cards to be customized with the company’s brand identity.

Virtual
Virtual credit cards are digital versions of traditional plastic cards. They include the same data found on a physical corporate card (e.g., card number, expiration date, company name, and card verification code [CVC]). Typically, these cards are generated electronically and are used for online transactions.

For a detailed comparison of the benefits and risks of the main types of cards, consult our guide on corporate credit and debit cards.

How do corporate cards work?

Although the type of corporate card impacts functionality, the process of using one can be divided into four steps:

• Issue card: The company assigns a corporate card to an employee or department and requests a physical or virtual copy.

• Set limits: The company sets the expense limits, which can be set per card or event. In addition, some card-issuing platforms allow businesses to define the frequency or category of each limit. For example, the advanced spending control in Stripe Issuing allows businesses to set up cards so employees can only use them at specific locations, such as restaurants or gas stations. Businesses can also set a weekly or monthly limit for each category.

• Make purchases: The employee pays for a purchase with the corporate card and provides the proof of the transaction (i.e., a cash receipt or invoice).

• Reconcile transactions: The expense management software automatically enters each transaction and settles it.

Which expenses should not be charged on corporate cards?

Every company usually defines its own rules for corporate cards. However, there are generally discouraged practices and payments that cannot be legally justified as company expenses. Inappropriate use of a corporate card can have internal consequences, such as the employee having to reimburse the amount or, in the worst case scenario, pay tax penalties.

Here are some expenses Spanish companies shouldn’t charge to their corporate cards:

• Personal expenses or expenses not related to the job: Personal purchases (e.g., clothes, technology, etc.), leisure trips, or subscriptions to digital services for personal use cannot be deducted as business expenses. These could incur penalties in the event of an inspection by the Spanish Tax Administration Agency (AEAT).

• Cash withdrawals: To guarantee the control and traceability of payments, it is also a good idea to limit or avoid cash withdrawals, except in authorized cases and accompanied by an invoice or receipt.

• High-value purchases: Certain purchases—such as technological equipment or machinery—require a more formal authorization or a special procedure that deviates from the card’s typical use.

• Holiday baskets and other gifts: According to the Ministry of Finance’s response to an inquiry regarding Christmas baskets: “Expenses for public relations with customers or suppliers shall not be considered tax-deductible expenses.” Since these are unique gifts that companies will categorize differently, it is not recommended that businesses use corporate cards to purchase them.

Having a well-defined use policy can help businesses avoid misunderstandings and maintain thorough control of expenses. It can also help ensure compliance with internal regulations.

Corporate card use in Spain

According to data from the Bank of Spain, purchases with corporate cards during the first quarter of 2025 reached just over 5.86 billion euros, 100 million more than the final quarter of 2023. However, the expense categories among companies remain similar year after year.

For example, large distribution companies accounted for nearly 22% of corporate card purchases in Spain, amounting to over €660 million. This was followed by retail (nearly 20% and just over €600 million) and supermarkets (about 16.5% and €506 million). Other frequent corporate card expenses include gas stations, restaurants, and entertainment, among others.

FAQs about corporate cards in Spain

What limits do corporate cards typically have?

It is customary for companies to set monthly, daily, or per transaction limits. In addition, some companies can exclude categories so cards cannot be used in those businesses. They can also set specific limits depending on the expense category.

For example, a company could establish limits so cards can only be used at supermarkets, restaurants, and hotels. Furthermore, the business could define a specific limit in each category (e.g., €50 a day at supermarkets and restaurants and €100 a day at hotels).

Can Spanish companies deduct expenses purchased with corporate cards?

Yes, a corporate card’s expenses follow the same rules as the rest of the company’s expenses. Therefore, they can be deducted, as long as they are related to professional activities and can be proven with receipts. In these cases, the company can deduct the value-added tax (VAT) in its quarterly VAT declaration as well as apply the relevant deductions to the corporate income tax (IS) through Form 200.

What happens if an employee uses a corporate card for personal or unjustified expenses?

The measures each company enforces depend on its internal policies. Typically, a business will require the worker or department to pay back the amount. In addition, if the employee or department attempts to deduct personal expenses as business-related purchases, the AEAT can force the company to pay a penalty.