Spain is the world's largest olive oil producer and exporter, known for extra virgin quality at competitive prices.
India is a young but fast-growing olive oil market, concentrated in big cities such as Delhi and Mumbai. It is used for cooking and also widely for cosmetics and massage. The India–EU trade agreement will make Spanish olive oil much cheaper in India.
India consumes around 10,000–14,000 tonnes of olive oil a year, with growth estimated at 9–12% a year for the next decade. About 40% is used for cosmetics and massage. The planned duty cut from 45% to 0% could expand the market sharply.
Indicative estimates by Think Euro International. Actual results depend on capital invested, pricing, buyers and execution.
| Indian import duty & GST | Indian import duty: about 45% today, plus 5% GST. Under the India–EU FTA it falls to 0% over five years once the agreement is in force. Export from Spain is VAT-free. |
|---|---|
| Spanish VAT (IVA) | Export to India: 0% (VAT-exempt export). Olive oil sold within Spain: 4% |
| 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: concluded in January 2026 and expected in force no earlier than 2027. India's 45% duty on olive oil is then reduced to 0% over five years.
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.
