Spain is one of those European countries with the highest level of development. The Spanish jurisdiction offers a well-structured fiscal system, transparent and understandable legislative framework and loyalty to foreign investors. Some forms of entrepreneurial activity in Spain enjoy tax privileges, which so attracts foreign capital owners.
The current tax system in Spain is as follows:
- Corporations pay 25% tax. This rate is relevant for small and medium-sized companies.
- Other forms of business can pay tax at a rate of up to 28%.
- For EU residents, 19% is provided, and for non-residents – 24%.
- Individuals in Spain pay taxes at a differentiated rate, which ranges from 24.75-52%.
- 4% for the autonomous sector.
Registration process
Before starting work, an assessor is selected and hired by the owners of the company. Such a manager is obliged to conduct the company’s activities within the country. In addition, foreign founders must obtain a NIE number from a police station before starting the registration process. This gives the founders the opportunity to buy premises for commercial purposes and establish a business directly. Also, a Spanish company requires the mandatory presence of a resident administrator or one who has the citizenship of this state.
Without a residence permit, it is allowed to use only two organizational forms – S.L. and S.A. – in fact, they are very similar to LLC and JSC, respectively. To create this type of organization, owners must:
- select 3 company names, arrange them in descending order of importance and send them to the registration office for verification;
- open a local bank account to which you need to deposit capital. The amount of capital varies, since it depends on the form of organization: 3012-60 101 euros;
- prepare a package of documents and certify it in a notary office. In this case, the owners and the manager must be present;
- pay the municipal fee, capital tax, and send the documents to the registering authority.
Upon completion of registration, the company receives its own fiscal number of this jurisdiction, acquires a seal and books for accounting.
A special opening procedure is provided for Spanish companies that belong to the ETVE regime. This regime relates to the possession of securities of foreign origin and affects holding structures. Companies that wish to function as companies with a central bank and thus avoid paying the general tax levy can fall into the following categories:
limited liability companies. They are obligated to comply with the ETVE requirements, however, they must also comply with standard tax field obligations and financial and legal regulations;
JSC. There is a minimum capital requirement of 60 thousand euros. At least 25% of this amount is paid immediately, in addition, the capital is divided into shares. This structure is completely open.
The United States may check such a company, which is an ETVE structure, for compliance with the procedures and regulations established by the federal tax system.
If you need to register a company in Spain, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Spain. Write to us in the CRM form and we will help you register a company.
Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.
We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.
If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.
Tariffs for enrollment and retaining of organisations are vital to apprehend when considering enrolling a profit-oriented functioning . Known for its resilient economy, transparent legal system, and openness to foreign investment, this region is an alluring location for organisation submission. To guarantee a successful setup and operation, it’s crucial to be aware of the company registration prices in Spain and the ongoing costs corresponding to company maintenance.
Tariffs for Company Registration
When evaluating the cost of company registration in Spain, multiple aspects come into play. The two primary commercial models are the S.L. and the S.A.:
- S.L.: This is the most usual commercial model, akin to an LLC in other jurisdictions. To establish an S.L., you must meet lower capital demands and pass through particularly lawful procedures. The prices for company formation Spain include fees for legal verification of papers, securing a commercial address, and setting up a commercial bank account.
- S.A.: Suitable for bigger enterprises with the capability of public listing, the S.A. demands a higher preliminary equity investment and involves additional regulations, such as forming a supervisory board. The organisation enrollment charges for an S.A. can be higher due to more layered supervisory demands and legal fees.
Both models necessitate a thorough understanding of Spanish corporate law, so engaging professional services to navigate these processes is advisable.
Charges for Organisation Retainment
Once your organisation is launched, ongoing company maintenance fees in Spain ought to be managed. These tariff comprise:
- Yearly Obedience and Fiscal Reporting: Spanish companies are required to submit annual reports and undergo periodic fiscal updates based on their size. The annual fees for company maintenance in Spain cover tax filings, comprising VAT and municipal fees, which are crucial for maintaining compliance.
- Office and Administrative Costs: Maintaining a legal business address is mandatory for receiving official correspondence, including tax notifications and government notices. Supplementary, commercials incur ongoing costs for administrative services, office space, and accounting.
Understanding the full scope of company registration and maintenance fees in Spain helps in budgeting effectively. Given the complexity of regional supervisions, engaging proficient staff to guarantee obedience with lawful and monetary demands is often vital.
Additional Charges for Company Formation and Retainment
In addition to the primary submitting and retaining outcomes, there are some other costs to take into account :
- Legal and Advisory Fees: Professional advisors who specialise in corporate law can facilitate the registration process and help avoid costly mistakes. They assist with drafting statutes, obtaining licences, and navigating regulatory complexities, impacting the charges for organisation enrollment .
- Banking and Capital Deposits: launching a commercial bank account involves setup levies and equity deposits demanded for the S.L. or S.A. formation. Additional costs may include international transfer fees and currency exchange, contributing to the business registration cost Spain.
- Allowances and Licences: Contingent upon industry, unambiguous allowances or certifications may be demanded. These costs vary and should be anticipated as part of the overall organisation launching tariffs.
- Taxation and Other Expenses: Spain’s complex tax system, including turnover-based rates and VAT, affects overall profitability. The company registration fees comparison Spain reveals that while Spain’s tax rates are competitive, detailed financial planning is essential to optimise tax obligations and other expenses.
Summary
Starting a company in Spain provides access to a dynamic European market and a supportive profit-oriented sphere. In contrast, apprehending the tariffs for organisation launching and the corresponding organisation retaining charges is vital for monetary forecasting and operational gain. Knowing how much does it cost to register a company in Spain helps in budgeting effectively. By carefully forecasting costs, seeking professional guidance, and complying with lawful demands, your business can thrive in Spain’s vibrant economic landscape.
Whether submitting an S.L. or an S.A., a clear overview of the process and associated costs will help ensure that your enterprise meets all regulatory demands and succeeds in one of Europe’s leading economies.