FAQ

Business Law

  1. NIE/NIF for founders and directors.
  2. Corporate name inquiry.
  3. Bank account.
  4. Minimum share capital of 3.000 euros for a LLC, and 60.000 euros for a joint stock company.
  5. Company constitution act before notary public.
  6. Registration of the company before the Companies Registration Office.
  7. Tax and social security formalities.

Yes. You, however, may be obliged by the bank to sign documents in person (depending on your nationality and the rules valid on the date of opening).

In some cases, it is more beneficial for dividend tax to set up a company by a legal person from other jurisdiction.

No, however, if the director is not a resident, he shall assign a representative or a CEO among Spanish residents.

If the director is not a Spanish resident, he shall assign a representative. Also, in case of permanent establishment or a simple account opening, a tax representative shall be assigned.

NIE is a tax number of a natural person, which is necessary for almost all legal actions in Spain.

NIF is the same as NIE for a natural person, and for a legal person NIF is a tax number.

CIF is the former name of NIF for legal person.

Yes, and directors and shareholders may be held subsidiary liable, as well as other companies of the group.

The general rule is that the minimum share capital for a LLC is 3.000 euros, and for a joint stock company is 60.000 euros. However, certain exceptions may be applied. For example, for investment companies (2.400.000 euros), for a transportation LLC (60.000 euros), capital risk companies (from 1.200.000 euros).

Yes, the director may be held liable for not applying for bankruptcy or if he applied outside the time limit (2 months).

Yes, director of a Spanish company bears corporate, civil, administrative and criminal responsibility.

Yes, both companies and natural persons can be declared bankrupt under Spanish legislation.

“Gestor” is an accountant of the firm and shall be distinguished from a tax counselor who is responsible for better tax structuring and tax assistant in general.

You shall be ready for a 30-40 days procedure. Also, it is possible to expedite the registration procedures if it is done through PAE.

Qualified attorneys may be registered in a PAE database and may constitute a company within a shorter time frame. Our attorneys are registered with PAE.

Tax Law

The personal income tax is defined according to progressive scale of withholdings rate and shall depend on the autonomous region of a taxpayer, from 19% to 47% (in some cases up to 54%). For non-residents up to 24% (19% for capital gains and financial investment).

Yes, for IT companies Spain has included

General rate is 25%, reduced by 15% during the first two years.

It is calculated according to the income received: 19% – 26% (for residents). For non-resident it is 19% and may be lowered by application of double taxation treaties.

The standard VAT rate is 21%. However, it can be lowered to 10% (restaurants), 4% (essentials) and 0% (education).

A sole entrepreneur is unlimitedly liable, a company is liable within the authorized capital. The first applies personal income tax, and the company shall apply corporate income tax. Both apply the same VAT rate.

Real Estate Law

The special CIT tax regime for companies that lease housing incentive consisting of 85% relief with respect to the part of the gross tax due related to qualifying income is reduced to 40% for the tax periods starting on 1 January 2022.

Yes, one of the most common real estate investments in Spain is acquiring hotels or vacational rental homes.

Yes, another profitable investment in Spain may be acquisition of a retirement home. It is also possible to adapt and reform hotels.

Yes, a Spanish lawyer can acquire a real estate for you by power of attorney.

  • Acquisition tax of 6-11% depending on the region (VAT for newly construed housing 10%)
  • Tax of documentary acts (stamp duty): depends on the region. Varies between 0,5 and 1,5%.
  • Notary public costs (depends and varies between 800 and 1200 euros).
  • Registry costs (depends and varies between 500 and 1000 euros).
  • Tax services (depends and varies between 500 and 1500 euros).
  • You will also pay around 3% commission to a real estate agency.
  • You may opt to be represented by a real estate lawyer, whose commission will be defined according to the difficulty of the case and the amount of the purchase (1,5% – 3%).

You are not obliged to hire a real estate lawyer, however, it is recommended to do so because of the risks of debts, incumbrances, liens, squatting, etc. Bear in mind that only qualified attorneys are entitled to render legal services. Real estate agencies and non-qualified lawyers cannot legally do so.

Yes, there is no prohibition in Spain to acquire property in cryptocurrency, however, there are a very few offers by now.

Start-ups

The new Start-up act entered into force in 2023 and introduces different novelties for entrepreneurs.

Even if you are not resident, your start-up company can claim the same benefits as the Spanish residents.

Public law

Yes, you can file for a residency permit in Spain both from your country (Spanish Consulate) and from Spain. You need to check out the visa options for your case.

It depends on the type of license. You shall file an application to a correspondent registry which will have a duration between 1 month and 1 year.

International law

In majority of cases, you have to file for exequatur. In some cases you can file enforcement claim directly to Spanish national courts.

It is always recommended to draft two column contracts if you act in Spain. Public bodies may claim the Spanish version, as well as the Spanish party shall be well aware of the terms and conditions of the deal.

It depends on the amount of the contract, the countries you are dealing with, your position in the deal (if you are a weak or a strong party, if you are a buyer or a seller) and where you are going to enforce the decision.

Employment law

No.

An employee has more guarantees, it receives compensation in case of dismissal and the company pays social benefits for him. Sole entrepreneur is a natural person who pays social security duties for himself and cannot claim compensation upon contract termination. Be aware of the responsibility if you hire a sole entrepreneur with the intention to treat him as an employee.

You may contract an agent (sole entrepreneur) but the contract shall be clear about the independent position of such agent, so that the company would not be held liable for false contract type and the agent could not claim employment relationships (as it was in Glovo case).

An employee shall first file a claim before the mediation body and then file a claim before courts.

A mediation body prior to court.

There is a strict procedure on that that shall be followed rigorously in order to avoid unlawful dismissal.

You only have 20 days to file a claim for unlawful dismissal, however, this period shall be interrupted for 15 days when you file a pre-claim before SMAC/CMAC. We recommend to contact your attorney to manage it for you.

It depends on the region, but be prepared to wait between 10 months and 2 years.

Mobbing is prohibited in Spain and companies shall conduct specific procedures to avoid it. Otherwise, an employee may file a claim before courts.