ou are thinking of transferring your business abroad or you intend to create a whole new activity on the Iberian Peninsula? If this is your case, you will have to choose the name of your company, acquire an address in Spain, obtain your foreign identification number (NIE) but also determine the social and tax domicile of your company .
There are two types of domicile for a registered company: social and fiscal. You are free to choose the location of your registered office, regardless of its fiscal domicile. If you want to start a business in Spain, the tax residence needs to be in Spain itself but the social residence, where the company is registered and where most of the business takes place, can be situated abroad.
Creating your Spanish business can be done in two ways. Firstly, an entrepreneur doing business outside of Spain may create a Spanish structure from scratch and control the capital from it. Alternatively, an entrepreneur could take over a Spanish company that already exists, often called a shell company, and take over the reins. Whatever the final choice may be, this entrepreneur should decide where it will be domiciled when drafting the statutes of the company, before a Spanish notary.
One of the main advantages concerns a reduction in tax. As a tax resident, you will enjoy the same tax benefits as all Spanish companies but can also continue to conduct business in your own country. Finally, you should note that if you want to change your social domicile (or tax domicile) in the future, you will need to consult a Spanish notary and amend the bylaws of your company
The social domicile is a secondary address and this is for many reasons. The tax domicile is the official reference of the company for the commercial register, for the courts and for the Spanish Treasury. In addition to this, your tax domicile will allow you to hire staff in Spain. All you will have to do is inform Spanish social security of your details and then either recruit employees yourself or go through a specialised agency. It is important to be well informed when dealing with administrative procedures abroad. Therefore, we advise you contact our specialist team in case of any doubts. This will allow you to fully optimise the profitability of your company and open it up to a world of business abroad.