|
WAY |
FEATURES |
TAX TREATMENT |
|
Spanish company |
The most common forms used are principally, the limited liability company (S.L.), and the corporation (S.A.). Its own legal personality. Liability is limited and it depends of the kind of company. |
Corporate Income Tax. The standard tax rate in Spain is 30% (there are special rates are applicable to certain entities, and reduced rates for companies of a reduced size). |
|
Branch or permanent establishment |
Neither alternative has its own legal personality, meaning that their activity and legal liability will at all times be directly related to the parent company of the foreign investor. |
Non-resident income tax, with permanent establishment |
|
Joint venture |
Association with other businesses already established in Spain. Through a Spanish corporations, Temporary Business Association, Economic Interest Grouping, other. |
Special rules for economic interest groupings, and temporary business alliances. The main feature: the part of the tax base attributable to members resident in Spain is not subject to corporate income tax. |
|
Without setting up a business or entering into an association |
Other agreements: a distribution agreement, agency, Franchising, etc. |
It depends on whether or not said contracting gives rise to the existence of permanent establishment in Spain for the non-residents. |
