Obtain a Trust License in Spain

A trust in Spain allows the owner of a property to entrust a third party with the management or preservation of certain assets so that they can be transferred to another person at a certain time or generate income while being in circulation in certain commercial transactions. If we talk about inheritance, when transferring assets to a trust, a direct heir and another indirect heir are determined, who inherit each other’s ownership for the transfer of property. Thus, a trust is a commercial entity that allows the owner of the property to instruct a trusted company to protect the property, transfer it to a third party at the appropriate time and invest it for profit. We can say that this is an instrument that is used to replace the ownership of assets. The trust acts as the manager of the property. Below we will look at the main aspects of establishing a trust and obtaining a trust license in Spain.

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Trusts in Spain: regulation and general licensing procedure

The concept of the functioning of trust structures in Spain is regulated by the Civil Code and the National Bank of the jurisdiction, and establishes that in a trust the grantor ensures that the trustee receives a specific asset with the condition that upon expiration of the term the asset will be transferred or a certain profit will be received from its use. There are three parties to a testamentary trust:

• grantor: This is the testator, the original owner of the property bequeathed. He is also responsible for determining whether the trust will operate according to his will;
• fiduciary heir: one who receives assets not for himself but for a third party. Therefore, he is the first heir (direct) who must retain the assets and the rights to transfer them when the time comes;
• heir: a final or indirect heir who receives assets from a fiduciary heir.

According to Spain trust law, the duties of a trust are as follows.

1. The obligation to act only in the best interests of the person transferring assets under the trust agreement. Since it is someone else’s money or property, the trust’s duty is to make the best decisions for the owner’s benefit.
2. The obligation to manage funds and property carefully. Since a trust deals with the assets of others, the firm’s responsibility is to make decisions that are best for the owner. The trust can invest funds, pay taxes, collect rent or outstanding debt, and, if necessary, obtain insurance on behalf and representation of the owner.
3. Obligation to maintain appropriate records of property disposition. The trust must keep accurate and complete records of funds and assets, otherwise the firm may face legal consequences.

For more detailed advice, please contact our experts. We will answer all your questions, and also offer options for ready-made trust companies with a license in Hong Kong, Mauritius, Estonia, Georgia and other countries around the world.

So, how to get trust license in Spain? Before it, it is important to conduct a detailed analysis of the legal framework and client trust license requirements Spain in order to be able to choose the most appropriate business tactics.

1. Determining the range of future activities and ensuring the reputation of the main participants. At this stage, the need for additional permits is analyzed, as well as knowledge of the types of trust activities that are covered by this license. In addition, the regulator will carefully evaluate the general data and reputation of the founders (criminal record, place of residence, nationality, etc.), which will require written documentary confirmation of all of the above.
2. Establishment of a local company. Having completed the first stage of analysis and corrected all possible problems (missing capital, physical presence, staff and required positions, etc.), it is necessary to establish a company at the local level.
3. Preparation and submission of documents, in particular trust license application Spain. To obtain trust license Spain, you must provide a business plan, a description of the services offered, information about the project team, and financial statements. In addition, personal information of management persons, confirmation of the presence of authorized capital and a registered office, as well as an open corporate account will be required.
4. Human and technological resources. Regulators place a lot of emphasis on contract personnel, so having a full-time AML-officer is a particularly important aspect. The technical part is left to the entrepreneur’s choice: he can create his own software and hardware from scratch or use outsourcing.

Trust license fees Spain required to pay range from 1,500 euros, depending on the scope of services under the license and other factors.

Advantages of a trust license in Spain

1. Stability of the business environment. It is important to note that the Spanish economy ranks 14th in the world in terms of GDP. In addition, according to the Human Development Index, progress is noted in the quality of life of Spaniards and their financial security.
2. Simple and straightforward registration and licensing procedure. One of the common problems when opening or creating a company is the issue of licensing procedures and compliance with tax obligations. However, the procedure to be followed in Spain is quite friendly and understandable for foreign investors. However, registration with the Central Register of Foreign Persons and obtaining a NIE will be required to conduct business in the country.
3. Opportunities for foreign investors. In fact, the government makes it accessible to obtain a visa for highly qualified specialists, as well as a visa for entrepreneurs. In this sense, one of the advantages of starting a business in Spain is associated with obtaining a residence permit, which gives the right to stay in the country for a period of more than 90 days, while developing business activities.

Our team of professional lawyers is ready to assist you in licensing your business. Trust license cost Spain varies and is calculated individually by our managers for each client. We will help you open a trust in Luxembourg, Denmark, France, Germany and other countries. Contact us today for professional trust services Spain and tomorrow your business will reach a new level.