India is one of the world's leading producers of essential oils such as mint, lemongrass, citronella, eucalyptus, vetiver and palmarosa, and of botanical extracts used in cosmetics, food and wellness.
Europe is the largest consuming region, driven by natural cosmetics, fragrance, aromatherapy and flavour industries. Barcelona and Catalonia host one of Europe's strongest fragrance and cosmetics clusters, which makes Spain a natural entry point.
The European essential oils market is projected to grow from about USD 12.8 billion in 2024 to about USD 27.5 billion by 2033. Demand is led by chemical-free cosmetics, pharmaceuticals and aromatherapy.
Indicative estimates by Think Euro International. Actual results depend on capital invested, pricing, buyers and execution.
| EU import duty | Typically 0% – 7% depending on the oil (many Indian oils such as mint enter at 0% – 2.3%); most plant extracts enter at 0%. Confirm the exact code in TARIC. |
|---|---|
| Spanish VAT (IVA) | 21% (cosmetic and aromatherapy use) |
| Spanish corporate tax | Spanish SL: 25% standard rate. Reduced 2026 rates: 19% on the first €50,000 of profit and 21% on the rest for companies with turnover under €1M; 23% for turnover under €10M; 15% for the first two profitable years of a newly created company. |
India–EU FTA: negotiations concluded on 27 January 2026. It is not yet in force (expected no earlier than 2027); once in force it removes or cuts EU duties on most Indian goods.
We coordinate company formation, registrations and licensing end-to-end with our legal and customs partners.
Talk to our team about sourcing, market entry, licensing and setting up your business in Spain.
Figures and rates are for general information (updated September 2026) and can change. Duty rates depend on the exact customs (TARIC) code, and tax depends on your specific situation. Please confirm with us before making investment decisions. This page is not legal or tax advice.
