Spain offers several business structures, including S.L. (Sociedad Limitada – Limited Liability Company), S.A. (Sociedad Anónima – Public Limited Company), and Autónomo (Self-Employed Sole Trader). The S.L. is the most common for small and medium businesses due to its flexible liability protection.

Foreign investors must obtain an NIE (Foreigner Identification Number), open a Spanish business bank account, and register with the Commercial Registry (Registro Mercantil). Non-EU investors may also need a visa or residence permit.

The process typically takes 2-6 weeks, depending on the company structure, legal paperwork, and whether all documents are properly submitted.

Yes, foreign investors can open a company in Spain without residency. However, a legal representative or administrator with Spanish residency may be required to manage certain business functions.

Companies in Spain are subject to Corporate Tax (Impuesto sobre Sociedades), VAT (IVA), and social security contributions for employees. The standard corporate tax rate is 25%, though tax incentives may apply.

Spanish companies must file annual accounts with the Commercial Registry, maintain financial records, and comply with corporate governance laws to avoid legal issues or penalties.

Having clear shareholder agreements, well-drafted contracts, and strong compliance policies is essential. Consulting a corporate lawyer ensures all business operations meet legal requirements.

Company directors are responsible for financial reporting, compliance with tax laws, and acting in the best interest of the company. Failure to comply may result in personal liability for debts or legal actions.

Yes, for an S.L. (Limited Liability Company), the minimum share capital is €3,000, while for an S.A. (Public Limited Company), it is €60,000, with at least 25% paid at incorporation.

Companies that fail to comply with tax or legal regulations may face fines, financial audits, or even business closure. Having a corporate legal advisor helps prevent these risks.

Yes, foreign investors can purchase a Spanish business. However, legal due diligence is essential to review financial records, debts, and compliance status before completing the acquisition.

A merger involves due diligence, valuation, shareholder approval, and a legal contract filing with the Commercial Registry. The process can take several months, depending on company size and complexity.

Yes, Spain offers tax incentives for startups, research & development businesses, and companies investing in specific industries such as technology, energy, and tourism.

Disputes can be settled through negotiation, mediation, arbitration, or litigation in Spanish courts. Many businesses prefer arbitration for a faster and more cost-effective resolution.

Spain offers a strong real estate market, high rental yields, a stable economy, and a fantastic lifestyle, making it a prime investment location.

Investors can explore residential and commercial real estate, land purchases, business acquisitions, and development projects.

Yes, Spain has a stable political and economic environment, with a consistent demand for properties, especially in coastal and urban areas.

Potential risks include fluctuating property values, local tax obligations, and legal complexities, which is why legal due diligence is essential

Yes, there are no restrictions on foreigners buying property in Spain. However, non-EU investors may need a visa for long-term stays.

Work with legal professionals, conduct thorough due diligence, and verify all contracts, taxes, and regulatory requirements before proceeding.

Yes, bank-repossessed properties can be great investment opportunities, but thorough legal checks are required.

This is a financial arrangement where an investor purchases a property and leases it back to the seller, ensuring an immediate rental return.

As of 2024, the Spanish government is discussing changes to the Golden Visa program, including potential removal of the €500,000 real estate investment route. Investors should act fast if they want to qualify under current rules.

Yes, but cities like Barcelona, Madrid, and Valencia are introducing stricter regulations on short-term rentals. Investors should check local licensing requirements before purchasing.

Yes, but UK citizens are now considered non-EU investors, meaning they may face higher taxes on rental income (24%) and require visas for long stays. The Golden Visa or Non-Lucrative Visa are options for residency.

The new Spanish Housing Law (2023) introduced rent caps in "stressed" rental areas and stronger tenant protections. If you plan to rent out property, check if your area is affected.

In Spain, debts like unpaid taxes or community fees stay attached to the property, not the previous owner, so legal due diligence is crucial before purchase.

Resale property: Property Transfer Tax (ITP) 6-11% (varies by region) New property: VAT (IVA) 10% + Stamp Duty (AJD) 1-1.5% Notary, registry, and legal fees: ~1.5-2% of the purchase price

Non-residents (non-EU) pay 24% tax on rental income (before deductions). EU/EEA residents can deduct expenses and pay 19% on net rental income. Capital Gains Tax remains at 19-26%, but some exemptions apply for reinvestment.

Spain offers several business structures, including S.L. (Sociedad Limitada – Limited Liability Company), S.A. (Sociedad Anónima – Public Limited Company), and Autónomo (Self-Employed Sole Trader). The S.L. is the most common for small and medium businesses due to its flexible liability protection.

Yes, foreigners can buy property in Spain without restrictions. You will need a NIE (Número de Identificación de Extranjero), which is a foreigner identification number required for all property transactions.

The NIE (Número de Identificación de Extranjero) is a tax identification number for foreigners. You can obtain it through a Spanish police station, a Spanish consulate in your home country, or through a legal representative like us at Harvey Lawyers.

While not mandatory, it is highly recommended. A Spanish bank account makes it easier to pay for utilities, taxes, and mortgage payments.

Find a property and negotiate the price Hire a lawyer to perform legal checks Sign a reservation agreement and pay a deposit Sign a private purchase contract (Contrato de Arras) with a deposit of 10% Complete due diligence (land registry checks, debts, etc.) Sign the title deed before a notary and pay the remaining amount

Property Transfer Tax (ITP): 6%-10% (for resale properties) VAT (IVA) & Stamp Duty (AJD): 10% VAT + 1.2%-1.5% (for new properties) Notary & Land Registry Fees: €1,000-€2,500 Lawyer Fees: Typically 1% of the property price.

On average, the process takes 6 to 12 weeks, depending on due diligence, mortgage approval, and legal checks.

Although it is not mandatory to consult with a property lawyer when processing the sale or purchase of property here in Spain, it is highly recommended. You work with a team that has experience in conveyancing, that can anticipate any issues in advance, save you time and money and guide you professionally through the whole process.

Yes, Spanish banks offer mortgages to foreign buyers. You can typically borrow 60% - 70% of the property's value, and mortgage terms range from 5 to 30 years.

Valid passport NIE (Foreigner Identification Number) Proof of funds or mortgage approval Private purchase contract Bank account details (if applicable)

‘Black money’ refers to undeclared cash payments made to avoid taxes, which is illegal in Spain. While this practice was more common in the past, it is strictly prohibited today. Additionally, any funds brought into Spain must comply with capital movement regulations. For instance, if you bring over €10,000 in cash without declaring it to customs, you may face legal issues, and the money cannot be legally justified in the deed of sale.

Once you own a property in Spain, you will need to budget for several ongoing costs, including: IBI (Impuesto sobre Bienes Inmuebles) – Annual property tax. IRNR (Impuesto sobre la Renta de No Residentes) – Non-resident income tax. Basuras Tax – Rubbish collection fee, usually paid annually. Utility Bills – Electricity, water, and gas. Community Fees (if applicable) – Charged for shared services in apartment complexes or urbanizations. Mortgage Payments & Home Insurance (if you have a loan). Life Insurance – Often required by banks for mortgage holders.

Yes, it is strongly recommended that you formalize a Spanish Will once you purchase a property. Spanish inheritance laws differ from those in other countries, and having a legally recognized Will ensures a smoother transition of assets to your heirs. A Spanish Will is: Drafted in both Spanish and English. Signed in front of a Notary in Spain or your home country. Legally aligned with European inheritance regulations.