Spain
Company Formation
Spain
Starting at €4500
Starting at €4500
What's included for 4500€ :
What’s Included:
- Company formation
- Governmental fees for first year
- Scanned corporate documents
- Registered Address
- Mandatory tax number for founder
Additional Services Available
Set of docs, translated
€270
Notarization and apostille
€840
Courier
€200
EIN Number (Tax ID)
€500
SWIFT + SEPA supporting EMI
€1500
Accounting services, introduction fee
€100
Company formation
Company formation
Company formation in Spain offers several advantages. Here are some of the key advantages:
- Strategic Location: Spain is strategically located in Europe, providing access to both European Union (EU) and Latin American markets. It serves as a bridge between Europe, Africa, and the Americas, making it an attractive base for international business activities.
- Strong Economy: Spain has one of the largest economies in the EU, offering a stable and developed business environment. It has a diverse economy with thriving sectors such as tourism, manufacturing, automotive, renewable energy, and technology.
- Business-Friendly Environment: Spain has implemented various measures to promote business and attract foreign investment. The government has simplified administrative procedures, reduced bureaucracy, and established incentives for entrepreneurship and foreign companies.
- Well-Developed Infrastructure: Spain boasts modern infrastructure, including transportation networks, ports, airports, and advanced telecommunications systems. This facilitates efficient logistics and connectivity for businesses operating within Spain and for international trade.
- Skilled Workforce: Spain has a well-educated and skilled workforce, making it an attractive location for companies seeking talented professionals. The country also offers competitive labor costs compared to other European countries.
- Access to EU Markets: As an EU member state, companies registered in Spain benefit from access to the EU’s vast market of over 500 million consumers without facing significant trade barriers or tariffs.
- Double Taxation Treaties: Spain has an extensive network of double taxation treaties with many countries worldwide. These treaties help prevent double taxation and promote international trade and investment.
- Supportive Entrepreneurial Ecosystem: Spain has a growing startup ecosystem and offers support for entrepreneurs and innovation. There are incubators, accelerators, and funding programs available to help startups and new businesses thrive.
- Quality of Life: Spain is known for its high quality of life, beautiful landscapes, rich culture, and favorable climate. This attracts professionals and entrepreneurs seeking a desirable work-life balance.
- EU Funding Opportunities: Spain benefits from EU funding programs that provide grants, loans, and support for research and development, innovation, and business growth initiatives.
Taxation system
Taxation system
Taxation in Spain is a complex system that includes various types of taxes at the national, regional, and local levels. The Spanish tax system is based on both direct and indirect taxes and is administered by the Spanish tax agency, Agencia Estatal de Administración Tributaria (AEAT). Here is an overview of the key taxes in Spain:
- Corporate Income Tax (Impuesto sobre Sociedades): This tax is imposed on the profits of companies and corporations operating in Spain. The standard corporate tax rate is 25%, although certain entities may be subject to a reduced rate.
- Value Added Tax (Impuesto sobre el Valor Añadido, IVA): VAT is an indirect tax applied to most goods and services in Spain. There are different VAT rates depending on the type of goods or services, with standard rates at 21% and reduced rates at 10% or 4%.
- Wealth Tax (Impuesto sobre el Patrimonio): This tax is levied on the net worth of individuals. It is a progressive tax, and each autonomous region in Spain has the authority to set its own rates and exemptions.
- Capital Gains Tax (Impuesto sobre las Ganancias Patrimoniales): This tax is applied to the profit earned from the sale of assets, such as real estate, stocks, and bonds. The tax rate depends on the type of asset and the holding period.
- Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones): This tax is imposed on inheritances and gifts. The rates and exemptions vary between regions, as each autonomous community has the power to set its own regulations.
- Municipal Taxes: Local authorities levy taxes on activities such as property ownership (Impuesto sobre Bienes Inmuebles, IBI) and municipal capital gains (Plusvalía).
VAT application
VAT application
If a company registered in Spain conducts business activities outside of Spain, it may not be required to apply for a VAT number in Spain, depending on the specific circumstances and the nature of the business activities. Here are a few factors to consider:
- Place of supply: If the company’s business activities are conducted exclusively outside of Spain, and the place of supply of goods or services is also outside of Spain, the company may not need to register for VAT in Spain. In such cases, the company may be subject to the VAT regulations of the country where the business activities take place.
- Threshold for distance selling: If the company sells goods to customers in other EU member states through distance selling (e.g., online sales), there is a distance selling threshold that varies by country. If the company’s total sales to a particular EU member state do not exceed the threshold in that country, the company may not need to register for VAT in that country. However, once the threshold is exceeded, VAT registration in the respective country may become mandatory.
- Reverse charge mechanism: In some cases, when a Spanish company provides services to customers outside of Spain, the reverse charge mechanism may apply. This means that the responsibility for accounting and paying VAT may shift to the customer, who will report and pay VAT in their own country, rather than the Spanish company needing to register for VAT in the customer’s country.
Steps of registration
Steps of registration
The process of registering a company in Spain involves several stages. Here is a general overview of the steps typically involved in company registration:
- Company Name Reservation: Verify the availability of your desired company name. Once approved, the name will be reserved for your company for a limited period.
- Obtain a NIF: Obtain a tax identification number (Número de Identificación Fiscal or NIF) for your company.
- Opening a Bank Account: Open a corporate bank account in Spain. You will need to provide the necessary documentation, including identification, proof of address, and company registration details.
- Drafting the Deed of Incorporation: Prepare the Deed of Incorporation, also known as the Articles of Association, which outlines the company’s structure, shareholders, capital, and other essential details.
- Capital Deposit: Deposit the minimum share capital required for your company’s legal form (e.g., €3,000 for a limited liability company) into the company’s bank account. Obtain a certificate of deposit.
- Register with the Mercantile Registry: Register your company with the local Mercantile Registry (Registro Mercantil) where your business is located. Submit the necessary documentation, including the Deed of Incorporation and proof of capital deposit.
- Obtain the CIF: Once your company is registered, you will receive the tax identification code (Código de Identificación Fiscal or CIF) from the Tax Agency. This code will be used for tax purposes.
- Register with Social Security: If you plan to hire employees, register your company with the Spanish Social Security system (Tesorería General de la Seguridad Social) to fulfill your obligations as an employer.
- Other Registrations: Depending on your business activities, you may need to register with specific authorities or obtain additional permits or licenses related to your industry or location.
Main requirements
Main requirements
There are specific requirements for each company incorporated in Spain:
- Every company must hire at least one local employee (can be director). This is needed to form proper substance package (with creation of which we can assist)
- Share capital should be paid-up to the corporate bank account, it can’t be just authorized nominally. Minimum EUR 3,000 for limited liability company