If you are a British company trading with Europe, you will already be feeling the effects of Brexit on your business.
Some of the issues are sector specific, such as tariffs, new regulatory burdens and associated certificates/authorisations, passporting rights, health & safety requirements, digital services sales VAT, etc.. Others, such as the transfer of data, are going to affect all UK companies.
The solution: establish an EU presence by setting up a company in Spain.
Setting up a company in Spain will circumvent all these handicaps.
Spain provides many advantages:
- Cheaper office premises
- Highly qualified, moderate cost workforce
- Corporation tax of 25% (15% for newly created companies in the 1st two years of profits)
- Repatriation of interest, royalties and dividends to the UK not taxable in Spain – protecting the profitability of your Spanish business
- UK was the no. 1 investor in Spain in 2019 – Europe’s 4th largest economy
- Facilitate further market expansion into other EU markets
- Quality of life
- The Spain-UK double taxation treaty exempts dividends, royalties and interest paid by a Spanish subsidiary to the UK from tax in Spain, even after Brexit where the EU Interest and Royalties Directive (IRD) and the EU Parent Subsidiary Directive (PSD) cease to be applicable.
Spanish Subsidiary or Branch?
A branch office has no separate legal existence from that of its founder and does not qualify as a separate EU legal entity within and subject to European Union legislation.
The logical choice therefore is to set up a Spanish subsidiary company.
This also gives the business more credibility vis-à-vis customers, banks, service providers and partners.
The main forms of company in Spain are the private limited liability company (“sociedad de responsabilidad limitada”) with a minimum share capital of Eur. 3,000 and the public limited company (“sociedad anónima”) with a minimum share capital of Eur. 60,000.
The company formation process is conducted before a notary. We prepare all the necessary documentation and deal with the opening of the Spanish bank account, registration with the tax authorities and obtaining of a Spanish tax identification number (NIF), company name and foreign investment clearance, preparation of the deed of constitution, attendance at the signing before the notary and holding of the general meeting appointing the director/s, presentation of tax declarations and registration in the Commercial Register.
We take care of the constitution and registration of the company on your behalf under a power-of-attorney without the need for you to come to Spain personally. We can also open the Spanish bank account under a power-of-attorney avoiding the need for you to travel to Spain.
We assist with all the other formalities, such as obtaining tax identification numbers for director/s (NIE) of the Spanish company, registration with the Social Security, setting up the online communication system (DEH) with the tax authorities and registration of the commencement of trading activities.
In addition, we provide a registered office address, tax representation (if required), as well as tax, accounting and payroll services.
Our mission is to provide a single point of contact, delivering a Spanish company which is fully operational and compliant enabling you to employ Spanish employees and invoice your customers from day 1.
Where all necessary documents are provided promptly, constitution before the notary takes approximately 2-4 weeks; registration in the commercial register another four weeks. Business can be conducted pending registration.
Why choose Scudamore Law?
Scudamore Law is an established Anglo-Spanish firm providing legal services to foreign investors for over 2 decades. Our lawyer are qualified English and Spanish lawyers. We are specialist international corporate lawyers and are expert in both English and Spanish company law. We communicate in native English in language you understand.
Transfer of staff to Spain
We advise on the appropriate business model for your business in Spain to ensure that whatever post-Brexit environment you may find yourself in, you can post and employ foreign staff in Spain.
We assist with:
- intra-company transfers
- golden visas
- residence/work permits for the assignment of foreign personnel
- control “permanent establishment” risk
- reduce payroll and social security costs
- Spanish employment law
- Social Security obligations