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FAQ. FOREIGN COMPANY IN SPAIN.
I am a foreign company and I am going to expand business to Spain. What taxes will I have to pay for my business?
I am a foreign company and I am going to expand business to Spain, what is the best legal form to set up in Spain?
If, as a foreign company, I only want to expand business in Spain without being formally registered, how can I do this correctly and avoid problems with the tax authorities?
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FAQ. SPANISH COMPANIES ABROAD.
I have business opportunities in a foreign country. What taxes are paid there?
I have premises in a foreign country, am I at risk of being taxed there?
How do I have to keep the accounts of my foreign branch?
I have companies in several countries. Do I have the right structure to minimise burden ?
If I sell to final consumers all over Europe, do I have to register and sell with VAT in each country?
If I want to receive dividends from my foreign subsidiary, how can I do this while minimising taxes?
I have incomes from abroad, what is the correct way to pay tax on it?
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FAQ. PROCEDURES IN WORK WITH / ABROAD.
I want to expand business to another country, what is the best legal way to do it?
I am going to work abroad and I have to relocate workers, what’s the process?
What formalities do I have to do to import through a foreign port?
Do I have to withhold tax from the salary of my employees posted abroad?
How do I formalise my relationship with a foreign agent?
How do I claim debts from my foreign clients?
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FAQ. WE RESPOND.
I am a foreign company and I am going to expand business to Spain. What taxes will I have to pay for my business?
Taxes in Spain are divided into direct and indirect taxes and all of them can be classified according to their nature: state, regional or local. The main levies are the IRPF (Personal Income Tax), the IS (Corporate Income Tax) and the VAT (Value Added Tax).
I am a foreign company and I am going to expand business to Spain, what is the best legal form to set up in Spain?
There are many options, from a self-employed individual, to a Representative Office, Permanent Establishment or Branch or Trading Company in any of its forms (limited company, limited liability company, cooperative...), whether it is a subsidiary company or an independent company of the foreign parent company.
If, as a foreign company, I only want to expand business in Spain without being formally registered, how can I do this correctly and avoid problems with the tax authorities?
Representative offices allow you to carry out auxiliary tasks in Spain so as to prospect the market with a few simple formal procedures versus the Tax Agency.
FAQ. WE RESPOND.
I have business opportunities in a foreign country, what taxes are paid there?
Each country is different, tell us which country it is and we will do a complete study of its most representative taxes.
I have premises in a foreign country, am I at risk of being taxed there?
Depending on whether the requirements established in the corresponding double taxation agreement are met, there may be a tax risk in this regard.
How do I have to keep the accounts of my foreign branch?
In addition to carrying it out in accordance with the legislation of that country, it must be integrated into the accounting of the parent company. For this, particular rules must be defined in each case to avoid duplication and to correctly account for operations with the parent company.
I have companies in several countries. Do I have the right structure to minimise burden?
The international business structure can have many forms, from a "horizontal structure” to a "holding" in its different alternatives. Each case is different, but having a holding structure is always recommended for multiple reasons.
If I sell to end consumers throughout Europe, do I have to register and sell with the VAT of each country?
Currently, and until a single European system is approved, if you pass certain thresholds for sales to final consumers (different in each country), you must register and sell at the VAT rate of each country.
If I want to receive dividends from my foreign subsidiary, how can I do this while minimising taxes?
As long as the requirements of the European parent-subsidiary directive are met, you can receive these dividends without withholding tax in the country of origin. In order to be exempt in Spain, the corresponding legislative requirements of the Spanish Corporate Income Tax Act must be fulfilled.
I have incomes from abroad, what is the correct way to pay tax on it?
Depending on the type of income and the country where it is produced, taxes will have to be paid in one country, the other or both.
I want to expand business to another country, what is the best legal way to do it?
Everything will depend on your specific case, but there are several options to consider, depending on the risk you are willing to take, the business in question and the country. In any case, you should be aware of the existing possibilities, such as the Representative Office, the Permanent Establishment or Branch or the subsidiary company.
I am going to work abroad and I have to relocate workers, what’s the process?
It depends on the country of destination. Give us more information and we will help you.
What formalities do I have to do to import through a foreign port?
Depending on the country, there will be particular procedures in each case. In the European Union, you will have to register in that country for VAT purposes for these imports.
Do I have to withhold tax from the salary of my employees posted abroad?
Incomes received for work effectively carried out abroad will be exempt, subject to the following requirements:
1st.- That said work is carried out for a company or entity not resident in Spain or a permanent establishment located abroad under the conditions established by regulations. In particular, when the entity receiving the work is related to the employee's employer or to the entity in which he provides his services, the requirements set out in section 5 of Article 16 of the revised text of the Corporate Income Tax Act, approved by Royal Legislative Decree 4/2004, of 5 March, must be met.
2nd.- That in the territory in which the work is carried out, a tax of an identical or analogous nature to that of this tax is applied and it is not a country or territory considered to be a tax haven. This requirement will be fulfilled when the country or territory in which the work is carried out has signed an international double taxation avoidance agreement (DTA) with Spain containing an exchange of information clause. The exemption will apply to the remuneration earned during the days spent abroad, up to a maximum limit of 60,100 euros per year. Regulations may establish the procedure for calculating the daily exempt amount. This exemption shall be incompatible, for taxpayers posted abroad, with the system of excesses excluded from taxation provided for in the regulations of this tax, whatever their amount. The taxpayer may opt for the application of the excess tax regime in place of this exemption".
How do I formalise my relationship with a foreign agent?
Relationships with agents from another country will entail a special type of contract reflecting, among other things, the legislation to which it will be subject.
How do I claim the debts of my foreign clients?
Litigation abroad will depend on the country in which they are to be claimed, and in each country there will be a procedure which may be different from one country to the next.
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