Logo

Barcelona & Madrid, SPAIN

COMPANY FORMATION

Limited Company Formation

LIMITED COMPANY FORMATION

Our expertise allows us to register your limited business in a single day.

Company Formation

Register your company in just one day. Through the telematic Spanish Commercial Registry your company will be registered in 6 hours. We will assist you within all the preliminary steps to get your company registered on time.

Steps to set up a Limited Company in Spain:

  • Choose one commercial name
  • Choose one commercial address
  • Get your NIE number first
  • Open a professional bank account
  • Sign the Company Formation before a Public Notary

Once your Company has been registered we will provide you full assistance with:

  • Accounting
  • Tax Filing
  • HR: labor contracts, paysplips, etc
  • Commercial legal advice and assistance
Branch Registration

BRANCH REGISTRATION

If your company is expanding its business into Spain then we recommend you to set up a branch.

Branch Registration

If your company is expanding its business into Spain through a new establishment (instead of a separate or independent company), then we recommend you to set up a branch.

We will register your branch in just one day.

  • We will get a tax identification number for your foreign company in Spain
  • We'll include an address as a permanent establishment for your branch
  • You will save the Notary and the Commercial Registry fees involved
  • Social Capital deposit is not needed

Please note:

The tax and accounting obligations are the same as for a Limited Company, the only difference is that the annual accounts deposit into the Commercial Registry, are not required .

Subsidiary Registration

SUBSIDIARY REGISTRATION

We can help you out to register a Subsidiary company for your current foreign company.

Subsidiary Registration

A Spanish subsidiary is a form of company in which the capital is owned by a foreign company . Even though the capital is provided by the foreign company, the subsidiary is considered a separate legal entity and the liability of its shareholders is limited by their contribution to the capital.

First we will get a tax identification number for your foreign company in Spain.

  • A subsidiary in Spain may be incorporated as a limited liability company
  • The subsidiary in Spain can form a European Economic Interes Grouping
  • The subsidiary is considred a separate legal entity
  • The subsidiary is entitled to benefit from various tax deductions and exemptions

Please note:

A subsidiary established in Spain is seen from a legal point of view as a local company and it must follow the same rules stipulated by the Spanish Commercial Law .

VAT

VAT Registration

VAT REGISTRATION

In today's global economy, the VAT number is crucial in order to do business globally.

VAT Registration

Due to the rise of the e-commerce, companies across the world need to get a VAT number in order to be able to act in the global e-commerce market and to reach any customer no matter where they are.

Steps to get a VAT number in Spain in just one day:

  • Sign a Power of Attorney
  • Get a certificate of incorporation
  • Get a good standing certificate

Please note:

If you need to import in Spain you will need an EORI number. The first step to get an EORI number is to get a VAT number in the first place.

VIES Registration

VIES REGISTRATION

You'll need a VIES number if a company is selling goods to a company based in a different EU country.

VIES Registration

If a company is selling goods to a company based in a different EU country and both companies are listed in the VIES/ROI database, then the goods are exempt from VAT tax.

If, on the other hand, both companies are based in the same country then VAT must still be applied.

Using the VIES database, an approved company can find out immediately whether an invoice must include VAT or not by looking up the VAT number of the company they are doing business with. Each EU member tax office maintains an electronic database that sends the information to the central VIES database.

Please note:

Note that once you are registered, you may be removed from the system at any time, often because you do not have any intra-EU transactions.

EORI Registration

EORI REGISTRATION

If you plan to import products into Spain, then you will need an EORI number.

Eori Registration

If your company is going to import products into Spain from outside of the EU, then you should apply for a Spanish EORI number.

We will get your EORI number in just one day.

An EORI is a number, unique throughout the European Community , assigned by a customs authority in a Member State to economic operators (businesses) or persons.

Please note:

You should get your EORI number in the member state where you did your first import/export trading. This will normally be your home country. Once you obtain the EORI number, this will be valid for all EU member states.

Once you have applied and registered with the Spanish Tax Agency, you will have to wait for approximately 48 hours for it to be activated and the goods can then be released.

EMPLOYER

Employer Registration

EMPLOYER REGISTRATION

If you are a foreign company and need to hire employees in Spain we can help.

Employer Registration

We can assist you in a very short period of time to register your Company in Spain as an Employer, which means that no tax or establishment requirements will apply.

The only obligation in Spain will be: paying the Social Security contributions and the Salary of your new employees.

  • Power of Attorney
  • Certificate of Incorporation
  • Certificate of Good Standing

Once we got the documents required listed bellow we could complete the process within a week.

Please also note that our rate of success is higher due to our expertise in the matter.

Labor Contrats

LABOR CONTRACTS

We will provide you labor law advice on the Spanish rules and guide you during the agreements' validity.

Labor Contracts

Depending on your company’s purpose or activity the appliable Convenio will be different, we will advice you and we will draft the labor contracts accordingly.

Contracts in Spain are sent to the Public State Employment Service within 10 days from their coming into force.

  • The minimum working age in Spain is 16
  • Permission from parents or guardians is required up to 18 years of age
  • A probationary period may be required

Please note:

During the probationary period, the working relationship may be terminated by either of the parties for any reason, without giving any notice and without any compensation, unless otherwise agreed.

Social Security & Tax Income

SOCIAL SECURITY & TAX INCOME

Why you should know your obligations when you have employees in Spain.

Social Security & Tax Income

If you work in Spain, you must pay Spanish taxes and register with the Spanish Social Security service. This registration is valid for life .

Foreigners who are living and working in Spain must register and pay their taxes to the Spanish social security system. This is in exchange for certain government benefits, including free Spanish healthcare.

  • Taxes are between a 30 % – 35% over the gross salary (with a limit of 1.310 €)
  • This amount is witheld from the employees payslip, which means that no cost represents for the company
  • Self-employed have to pay their own Spanish contributions in full, albeit at a lower total percentage

Please note:

As a general rule, you must be employed and be paying contributions in order to be covered for illness, injuries, and accidents at work, unemployment, maternity and paternity leave .

REAL ESTATE

Tax Implications

TAX IMPLICATIONS

Depending on the Community where the property is based, the tax rate may be different.

Tax Implications

Depending on the Community where the property is based, the tax rate is different. It goes from 6% (Madrid) up to 10% (Catalonia). This taxed is called ITP and is calculated on top of the property’s price .

Once you become the owner of the property then, you could ne in one of the following three scenarios:

  • The property you buy is your home: in this case no taxes are involved
  • The property you buy is empty so you should pay: 1,1% over 24% over the catastral value
  • The property you buy is to be rented: you should pay: 24% over the total of your income

Please note:

You'll need a NIE and a bank account before even buying a property in Spain.

Finally, remember that once you are the owner of a property in Spain, you must appoint a tax representative if you are not resident in Spain .

Power of Attorney

POWER OF ATTORNEY

If you need assistance to complete the purchase process on your behalf, you'll be required a Power of Attorney.

Power of Attorney

We will draft a power of attorney including all the faculties necessaries to assist you from Spain according to your wishes and needs.

You perfectly could sign the power of attorney in your country, doesn’t matter where you are.

  • You can sign the power of attorney at your local Spanish Consulate
  • Or with any Public Notary you wish and then include the Hague Apostille on it

Please note:

The Spanish power of attorney has to be concluded in writing. The document must be drawn in front of a public notary and it must clearly stipulate the types of activities that are granted to another person (who can be a family member, a lawyer, etc).

Re-Investment

RE-INVESTMENT

Spanish house prices rose slightly by 1.68% during the year to Q3 2020 according to according to the INE.

Re-investment

The annual variation rate of the Housing Price Index (HPI) decreased by four tenths to 1.7% in fourth quarter of 2020.

It is the lowest since the first quarter of 2015, according to INE .

  • The annual rate of the Autonomous Communities decreased in the third quarter compared to the previous quarter
  • The greatest decreases occurred in Extremadura, Andalucia and Illes Balears
  • In most autonomous communities, housing prices increased in the third quarter of 2020 compared to the secondThe data published today is final and is not subject to further revision. All results are available in INEBase.

Please note:

For their part, Canarias, Comunidad Foral de Navarra and Comunitat Valenciana were the communities where the annual rate increased the most , with increases of eight, five and four tenths, respectively.

INTERNATIONAL TAXATION

Income Tax / Tax Planning

INCOME TAX / TAX PLANNING

If you are living and working in Spain, you are liable to pay income taxes in Spain on your income and assets.

Income Tax / Tax Planning

If you’re a resident of Spain, you must pay Spanish tax on your worldwide income. Taxes apply on a progressive scale, although tax deductions exist. If you are a non-resident in Spain, you only pay tax in Spain on Spanish income, typically at a flat rate.

Spanish tax also applies to property ownership, investment interest, and goods and services (VAT) in Spain. Here as some of them:

  • Income taxes
  • Wealth taxes
  • Inheritance taxes
  • Property taxes

You should know that taxes in Spain are split between state and regional governments.

This means that Spanish tax rates can vary across the country for income tax, property tax, wealth tax, capital gains tax, and inheritance tax in Spain. Furthermore, workers in Spain must contribute to Spanish social security taxes. The Spanish tax year runs from 1 January to 31 December .

Beckham Law / Wealth Tax

BECKHAM LAW / WEALTH TAX

A special tax regime that enables foreigners who move to the Spanish territory to pay a flat fee of 24% only.

Beckham Law / Wealth Tax

So, basically, this special tax regime for expats make it possible to end up paying much lower taxes, hence being able to save huge amounts of money.

It allows all the workers who reside abroad that want to come to work in Spain to pay income and wealth tax as if they were non-residents during the first 6 years.

It was created to attract talent and qualified workers into Spain ; and got its name after the famous football player David Beckham (the first one to take advantage of it).

Under the Beckham law, no matter if you spend over 183 days in the country (hence becoming a tax resident), you will pay taxes under taxation rules similar tho those who are non-residents.

Now expats can pay much less during their first 6 years in the country . And they can save taxes provided that they apply for this regime.

As far as Wealth Tax is concerned, is a tax for high net worth residents in Spain .

Spain continues to be a favourite destination for expatriates, including those making the most of their retirement years. There are many benefits to living here, and with the wide variety of property and locations, there is a dream home for everyone.

Besides the expected income and capital gains taxes, Spain additionally imposes an annual wealth tax. While most people are exempt – in general, if you are resident in Spain, you can only be affected if the net value of your worldwide assets is over €1 million – it can have a significant impact on wealthy individuals.

Form #790

FORM #790

The #790 form is a filing form to the Spain's Justice Department locally Ministerio de Justicia.

Form #790

The form can be downloaded online. It must be filled and signed off by the person who is requesting the services.

This form is filed for the following situations:

  • Last wills
  • Life insurances
  • Criminal records

Given the global CORONAVIRUS pandamic, you should know:

Only certificates of criminal, sexual, last wills and life insurance records will be issued through the electronic headquarters of the Ministry. Never in person, whether or not you have an appointment .

The registration of documents must be carried out through the electronic headquarters of the Ministry, never in person.

IMMIGRATION SERVICES

Golden Visa / Business Visa

GOLDEN VISA / BUSINESS VISA

Spain launched its golden visa programme in 2013. An investment of at least €500,000 is needed.

Golden Visa / Business Visa

If you are considering purchasing or investing in property in Spain for at least 500.000€ then you could get the residency in Spain for your entire family.

On the other hand, if you invested in Spain after 27th September 2013 then you could also apply for the residency in Spain including your family. This visa is the only one you can apply from Spain.

  • You could apply for the Golden Visa from your own country
  • You could also apply for the Golden Visa from Spain
  • The Spanish investor visa can be renewed every two years

After five years it is possible to gain permanent residency and after ten years citizenship.

It is not necessary to live in Spain in order to retain and renew the residency visa permit.

Wealth Visa

WEALTH VISA

Wealth visa Spain is also referred to as a non lucrative visa. Here's what you need to know.

Wealth Visa

The visa helps ex-pats who want to stay in the country but don’t have a reliable income source. Among many of those immigrating to Spain, you may find individuals who may move into the country because of reasons that push them without proving that they have an income-generating activity.

However, the wealth visa in Spain is given to the people who demonstrate that they can sustain themselves effectively while in Spain.

  • To get it, you'll need immigration services as the process is complex
  • The specific requirements sought are unique and very important
  • You also need to comply with the requirements that you provide by giving enough proof of what you have

If you miss providing any during the application process, then the process will not go through.

The visa applies to anyone who has enough resources to help them stay in Spain without working. Their savings can be cash or investments that provide fixed income and guarantee no compromise during their stay. Look out for the following requirements before you start the visa application.

NIE / TIE / Residency Permits

NIE / TIE / RESIDENCY PERMITS

All property buyers or foreigners who wish to live in Spain must obtain a Spanish ID number (NIE).

NIE / TIE / Residency Permits

If you don't have a NIE, you can apply for it in person at the Spanish Consulate, or in any Oficina de Extranjeros in Spain.

NIE is an abbreviation for Número de Identidad de Extranjero, which translates as Identification Number for Foreigners, or Foreigners’ Identification Number if you prefer.

  • The NIE is your all-purpose identification and tax number in Spain
  • You need it for everything that involves an official filing in Spain
  • Without a NIE number, the authorities are unable to assess your annual tax payments
  • Anyone who wants to work in Spain, or start a business need a NIE.

Please note:

If you are an EU citizen and spend longer than 3 months in Spain after getting your NIE number, you are required to register and get a government certificate that shows your NIE number .

The process of obtaining a NIE is complex and overwhelming if you're not used to burocracy. We can do all the hassle for you.

ACCOUNTING SERVICES

Accounting & Tax Filing

ACCOUNTING & TAX FILING

We offer a complete accounting and tax filing service in English, French and Spanish.

Accounting & Tax Filing

We study your business carefuly and we inform you about the needs of your company, we perform your tax obligations and help you to optimate them according to the Spanish regulations.

Our services include handling the complete accounting cycle, checking your administration, month-end reporting, cash-flow forecasting, and compiling your annual accounts and filing them with the competent authorities.

  • Prepare reports adapted to Spanish GAAP
  • Preparation of annual accounts
  • Maintain official books that can be easily used before tax auditors if needed
  • Help on administrative issues related to the accounting bank payments

Please note:

We also offer services in consolidation of financial statements , and can advise you where accounting priniciples differ in Spain.

Tax Filing for VAT Registration

TAX FILING FOR VAT REGISTRATION

The Spanish value added tax (VAT) is imposed at a standard rate.

Tax Filing for VAT Registration

Companies need to register for VAT purposes with the local tax authorities and obtain the Spanish VAT number.

They also have to take the necessary measures so that their business complies with the tax regulations in their business field just as the freelancers.

  • There is a VAT registration for domestic companies.
  • There is also a VAT registration for foreign businesses

The VAT is applicable to both services and goods that are sold inside the entire Spanish territory.

Our team of specialists in company registration in Spain can advise on VAT registration in Spain; investors can obtain consultancy services from our specialists that are related to all the corporate taxes that have to be paid by local businesses.

Accounting for Freelancers

ACCOUNTING FOR FREELANCERS

If you wish to register as a freelance, then we can definitely help you make the right decisions.

Accounting for Freelancers

We provide full assistance: with the registration in the most effective and profitable way.

Our team of experts in personal taxation will assist you with all the matters implied in this process.

  • You will have to keep updated on the tax and accounting matters according to the Spanish legislation
  • You will have to pay Spanish taxes like IRPF and the Social Security

Please note:

We provide full assistance: with the registration in the most effective and profitable way and we will assist you with your tax and social security contributions and declarations too.

Our monthly fee includes all the services you will need to run your business as a freelance in Spain.

Go Home Icon