When an investor considers landing in Spain, in addition to business opportunities, it is necessary to carefully study the legal risks inherent in our country. In addition to the legal certainty that a destination may offer, it is necessary to take into account the small differences and the intrinsic peculiarities of the country, since, sometimes, they can ruin a business if, for example, the costs of a litigation are not well calculated .
The advantages outweigh the disadvantages
You may find the procedures to create a company in Spain from abroad overwhelming as they require time and knowledge of the Spanish legal system. However, opening a business in Spain for non-resident investors can be a great opportunity. We tell you the problems that may arise and how they are solved.
Spain is not only a holiday destination, it is also a country in which there are many opportunities for foreign investors, thanks to a series of differentiating factors:
- The lowest tax burden.
- The simplicity of the legal procedures to operate in Spain.
- Sustained economic growth in recent years.
- The strategic situation of the country as a point of connection with Africa and Latin America
The excellent communication routes and infrastructures.
- The means of transport (planes, high-speed trains, buses, etc.)
- The benign climatology.
Entrepreneurship in Spain is growing and, in fact, according to the 2018 GEM Spain Report, there are 6 entrepreneurs in the initial phase for every 100 people in the adult population. The entrepreneurial rate stood at 6.2% in 2017.
Main problems faced by a foreign investor in Spain and solutions that we propose:
1) ISSUE /PROBLEM/TROUBLE: Need to travel to Spain to carry out the incorporation of the company.
A trip to Spain requires time and effort that you will want to invest in your business, so you have two options: to hire a Spaniard or to empower a legal and tax representative in Spain (must be a resident and have a tax address in Spain), to carry out all the procedures you need.
The advantages of hiring the legal and tax representative service in Spain are the following:
- The cost is lower, since there will be no travel and the procedures will be done faster.
- You will have a professional team with experience in advising foreign companies that wish to settle in Spain.
- You can focus on your business while expert professionals who know Spanish regulations and institutions in depth, work for you.
- They will attend you in English so that communication is more fluid and the procedures, more agile.
2) ISSUE/PROBLEM/TROUBLE: You do not want to create a branch or subsidiary in Spain
You may want to start operating in Spain quickly, without the need to create a branch or subsidiary. To achieve this you can request a non-resident NIF with the help of a legal and tax representative. For this you will need:
- A document that proves the existence of the non-resident company (statutes, articles of incorporation, certification from a notary or public registry).
- A power of attorney by which the foreign company empowers a resident in Spain who will be its legal and fiscal representative.
- A certification from the Mercantile Registry identifying the administrators of the foreign company.
- The NIE of the legal representative in Spain.
- The documentation must be presented translated by a sworn translator and with the Hague Apostille or legalization.
In addition, the following information must be provided:
- Whether or not the foreign entity has legal personality.
- Social denomination.
- Tax identification number in the country of residence.
- Tax residence.
- Date of incorporation and registration in the corresponding public registry.
- Social capital in the constitution.
- Data of the representatives (name or company name, tax identification number, address, etc.).
3) ISSUE/PROBLEM/TROUBLE: You do not know the legal obligations in Spain
The ignorance of the legal obligations of companies is not an obstacle to creating a company in Spain from abroad, since you will have the help of a local expert consultant from SPANISH BRANCH OFFICE who will guide you in English and at the time you need about:
– The legal forms that a company can have (branch or subsidiary, limited company or anonymous).
– The tax obligations that you must meet (presentation of VAT, personal income tax and IS). Obligations regarding the hiring of workers (social security, income tax withholdings, prevention of occupational hazards, etc.).
The solution is SPANISHBRANCHOFFICE
We have been working with transnational companies for more than 20 years helping them to establish themselves in Spain, and in other European countries (Portugal, Azores, Greece, Italy, Romania, Ukraine).