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Now that your business is finally set up in Spain, you can start to get to work in your new country. To do so, it is essential that you know how to form a contract that can regulate your business. The service contract is a basic document that will allow you to control the sale of service between businesses and or individuals.

Service contract in Spain: definition

The concept of a "service provision" translates as work or an undefined service that a person or company undertakes for the benefit of another person or company against remuneration.

This type of contract is used by companies and professionals that require a third party to complete their service. Indeed, service outsourcing reduces costs for business and this is why it is becoming increasingly popular.  The services sector is therefore gaining an increasingly important place in the economic market.

If a service contract is established between professionals from two different countries, the applicable law will be that of the country of residence of he who provides the service. However, it is important to consult a lawyer in Spain before starting your activity to avoid taking any risks.

How to write a service provision contract?

The purpose of a service provision contract is for the service provider to carry out work for a client. It is recommended to write out the contract by hand and to avoid any kind of preconceived model which can involve ambiguity and lack of detail. The information that should be included in the contract are as follows: • The full name of the company that receives the services in question as well as their full address and telephone number • The contact details of the company that provide the service • A detailed description of the service itself • The exact price of the service, with or without VAT • The location, date and time of the service

The validity of the service provision contract in Spain

For the contract to be valid, it is not necessary to sign by hand or to be in the presence of a notary. Moreover, it is not mandatory to publish the contract. Although a written version is not always required, it is indeed recommended to compose one and that each party keeps a hold of a copy each. If the service provision contract is in the form of an electronic document (email, word document, PDF, web page etc.), the legal value remains the same. Certified electronic signatures have the same value as handwritten signatures too.

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