Registration of Company in Spain-S.A.

Spain (in Spanish and in Galician: España, in Catalan: Espanya, in Basque: Espainia, in Occitan: Espanha), officially - the Kingdom of Spain, (in Spanish and in Galician:Reino de España, in Catalan: Regne d'Espanya, in Basque: Espainiako Erresuma, in Occitan: Reialme d'Espanha) is a sovereign state in the south-west of Europe, and member of the European Union.

Spain occupies most of the Iberian Peninsula. The territory is divided into 17 autonomous communities and 2 autonomous cities. The capital is the city of Madrid.

According to one of the versions, the country's name derives from the Phoenician expression "i-shpanim" that means “the shore of damans”. It occupies 80% of the territory of the Iberian Peninsula and the Canary Islands and the Balearic Islands, has total area of 504,782 km2 (with small sovereign territories on the African coast, the cities of Ceuta and Melilla), being the fourth largest country in Europe after Russia, Ukraine and France.

The average altitude of the surface of Spain is 650 meters above sea level. The country is one of the most mountainous countries in Europe.

It has land borders with:
1. Portugal in the west of the Iberian Peninsula;
2. British overseas territory of Gibraltar in the south the Iberian Peninsula;
3. Morocco in North Africa (enclaves of Ceuta, Melilla and Peñón de Vélez de la Gomera);
4. France and Andorra in the north.

Spain is bounded by the Atlantic Ocean in north and west, and also by the Mediterranean Sea in south and east.

Business in Spain: company registration and organizational and legal forms

The founder of the company must personally come to Spain to sign documents.  In other case registration takes place through power of attorney by our employee.

Sociedad Anonima (S.A.) is joint-stock company with charter capital from 60 thousand euros. At least 15 thousand euros shall be contributed at the stage of registration. It can be established by one person. Company participants are not liable for its obligations.

Sociedad de Responsabilidad Limitada (S.L.) is limited liability company. The authorized capital is from EUR 3,000, and is completely payable at the registration stage. Company participants are not liable for its obligations.
All residing in Spain should obtain tax identification number (NIE).

In order to do business in Spain it is necessary to obtain corporate tax identification number (CIF). These numbers can be obtained at any Spanish regional tax service (Delegaciun de Hacienda).

Taxes in Spain

Taxes in Spain can not be considered as low, but it is pleasant that almost everything up to petrol and going to restaurant can be expenses as incurred.

There are the following taxes in Spain: from 30% - income tax (once a year), 21% - VAT, 7% - tax on real estate, 28-30% - on individual income.

Corporate tax: up to EUR 120202,41 25% is applicable, higher - 30%. Increase in profits from sales under certain conditions is subject to tax of 18%.

VAT and excise tax: basic level of 21%, on the Canary Islands - 7%. Taxes on entertainment services, hotels and restaurants, manufacture of sporting goods, food, eco-products, household products, books and production at agroindustrial enterprises are reduced up to 7% or even 4%.

Property tax: if regional administration does not specify otherwise,  the federal 7% on the first 150,253 euros of property value shall be paid. It is paid once a year before December 31.

Individual income tax: all incomes are taxed from 21% to 27% depending on the income level.

Inheritance tax and gift tax: inheritance or gift worth more than 8000 euros is subject to tax, and it does not matter whether you are resident of Spain or not. Basic level of tax is 7.65%, and for property worth more than 815,000 euros the tax up to 34% is to be paid. Minors pay up to 5%.

Tax on transfer of property: certain types of transfer of property and commercial transfers are paid under the arrangement either by the buyer or by the seller; it ranges from 0.5 to 6%.

Tax on income from property: is issued by the municipality for the whole real estate and ranges from 1.1 to 5% of the cadastral value, that is twenty times lower than market value.

Tax on lease of real estate: since January 2007, residents of 18 - 35 years old are exempt from paying this tax, and for the remaining the payment equals to 50%. For non-residents - 24%;the real estate maintenance costs are not taxed.

Tax on motor vehicles (impuesto sobre vehiculos de motor): is usually paid from September to November of each year, depends on the age and capacity of the vehicle and equals to approximately 60 euros per year on average vehicle.

Social expenditures: depend on the category of professions and equals to 6.4% for workers and 30.6% for employers. Entrepreneurs are taxed on effective yield of 29.8%, that ranges from 785-70 to 2897-70 euros per month.

We will register company in Spain for you within the shortest time possible.  It has never been easier to buy company in Spain. Registration of company in Spain is one of the easiest and cheapest ways to start legitimate international entrepreneurial activities. Registration of companies is one of the main directions of our work.