Introduction to setting up a branch in Spain
Spain has one of the largest economies in the world and is a great place to establish a branch, with incentives offered toward foreign investment. Spanish branches must have the same name as the parent company, suffixed with ‘Branch in Spain’ (‘Sucursal en España’).
What are the formalities regarding Spanish branches?
- A copy of the parent company’s Certificate of Incorporation
- A copy of Memorandum & Articles of Association of the parent company
- A copy of the parent company’s Certificate of Good Standing
- Notarised Power of Attorney
- Spanish tax identification number (NIE)
- Compulsory acquisition of a company Digital Certificate – allowing effective electronic communication between the branch and the Tax Authorities
- A representative of the Spanish branch, to be a Spanish resident (liable for any debts of the branch before the Spanish Tax Authorities and social security)
The requirements listed above are needed by the Spanish Business Register in order to register the branch.
Apostille and sworn translation into Spanish of all the parent company’s incorporation documents is mandatory.
What are the accounting requirements for a Spanish Branch?
A Spanish branch is not required to file annual accounts with the Spanish Business Register.
The branch company must obtain an NIE number from the Spanish Tax Office in order to register for VAT. VAT returns of the branch should be submitted quarterly.
Branches in Spain qualify to pay Non-Residents Income Tax and tax returns should be filed annually.
Please visit our partners Accountancy In Europe for further information on accountancy and tax rates in Spain.
What office facilities are available when registering a branch?
There are three types of office available in Spain:
- Registered offices provide a registered address for the correspondence of the branch
- Virtual offices provide off-site communication facilities, including telephone, fax and mail forwarding
- Serviced offices are physical offices with all necessary business services ready for immediate occupation by the branch
Branch formation packages
Every aspect of the branch formation can be taken care of for you by our team of experts. We provide branch formation packages with services such as branch and VAT registration, so you can relax while we manage the entire process from start to finish.
You can take further advantage of our expertise and experience by using our unique one stop solution to set up multiple branches. As with single branches, we will take care of all the hard work while you enjoy the benefits of further increased exposure, client security and many more.
For further information please send an enquiry or contact us using the form below.