- 1Spain: An attractive country for investment
- 2Setting up a business in Spain
- 3 Tax System
- 4 Investment aid and incentives in Spain
- 5 Labor and social security regulations
- 6 Intellectual property law
- 7Legal framework and tax implications of e-commerce in Spain
- AI Annex I Company and Commercial Law
- AIIAnnex II The Spanish financial system
- AIIIAnnex IIIAccounting and audit issues
- Different ways of doing business in Spain
- Tax Identification Number (N.I.F.) and Foreigner Identity Number (N.I.E.)
- N.I.E. for individuals who are to be shareholders or directors of companies resident in Spain, tax and legal representatives of a branch in Spain or limited liability entrepreneurs
- N.I.F. for legal entities that are to be shareholders or directors of companies resident in Spain or owners of branches in Spain
- Provisional and definitive N.I.F. of the company resident in Spain that is to be set up
- Formation of a company
- Limited liability entrepreneur
- Opening of a branch
- Other alternatives for operating in Spain
- Other alternatives for investing in Spain
- Dispute resolution
- Appendix I - Table summarizing the tax treatment given to the various ways of investing in Spain
Appendix I - Table summarizing the tax treatment given to the various ways of investing in Spain
|Ways of investing in Spain||Tax treatment|
|Incorporation of a subsidiary (Corporation (S.A.) / Limited liability company (S.L.))||General corporate income tax rules pursuant to the Corporate Income Tax Law. ((See Chapter 3, section 2.1 for more detailed information)).|
|Formation of a branch||Nonresident income tax, with permanent establishment. (See Chapter 3, section 2.3.1 for more detailed information).|
|Economic Interest Grouping (EIG), Temporary Business Alliance (UTE) and joint venture||Special rules for economic interest groupings, both Spanish and European, and temporary business alliances. In particular:
(See Chapter 3, sections 2.1.13 for more detailed information).
|Distribution agreement||The tax treatment of nonresidents in Spain who contract with Spanish distributors will depend on whether or not said contracting gives rise to the existence of permanent establishment in Spain for the nonresidents:
Whether or not a permanent establishment exists will depend, in general, on whether the nonresident is deemed to be distributing in Spain through a fixed place of business or an independent agent.
|Agency agreement||The tax treatment is similar to that stipulated for distribution agreements.
Whether or not a permanent establishment exists will depend, in general, on whether or not the agent has powers to bind the nonresident.
|Commission agency agreement||The tax treatment is similar to that stipulated for distribution and agency agreements.
Whether or not a permanent establishment exists will depend, in general, on whether or not the commission agent has powers to bind the nonresident principal.
|Franchising agreement||The payment made by the franchiser to the franchisee may be given the following treatments, depending on the services provided and rights granted:
(See Chapter 2, section 7.7.4 for more detailed information).
|Sale and purchase of business (assets and liabilities or global transfer of assets and liabilities)||The main tax implications in a sale and purchase of a business relate to VAT, transfer tax under the “transfers for consideration” heading and stamp tax. Accordingly: