Spain free zones
The Spanish Government operates 4 Free Zones: i) Ceuta and Melilla free zones ii) Cadiz Free Zone iii) Vigo Free Zone and iv) Canary Islands Free Zone. These zones offer multiple benefits including i) reduced corporate tax rate of 4% ii) reduced VAT rate of 7% iii) transfer tax exemption and iv) stamp duty exemption.
|Free zone comparison||Canary Islands||Ceuta and Melilla||Cadiz||Vigo|
|Spanish free trade zone used mostly by which industry?||Construction||Textiles||Manufacturing||Automobile|
|Average annual Industrial space rent per 1000 sq. m.||€35,000||€40,000||€38,000||€35,000|
|How long to set the company up?||3 months||3 months||3 months||3 months|
|How long to open company bank account?||3 weeks||3 weeks||3 weeks||3 weeks|
|Quality of Utilities||Good||Good||Good||Good|
|Allowed to sign sales contracts with Spain Clients?||Yes||Yes||Yes||Yes|
|Allowed to invoice Spain Clients?||Yes||Yes||Yes||Yes|
|Corporate tax payable in Spain||4%||4%||4%||4%|
|Corporate bank account||Banco Santander||BBVA||La Caixa||Banco Sabadell|
|Physical office space required||Yes||Yes||Yes||Yes|
|Allowed to import raw materials?||Yes||Yes||Yes||Yes|
|Allowed to export goods?||Yes||Yes||Yes||Yes|
|Can be wholly foreign owned||Yes||Yes||Yes||Yes|
|Can the entity hire expatriate staff in Spain?||Yes||Yes||Yes||Yes|
|Minimum number of directors||1||1||1||1|
|Minimum number of shareholders||1||1||1||1|
|Tax registration certificate required||Yes||Yes||Yes||Yes|
|Individual shareholders allowed||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed||Yes||Yes||Yes||Yes|
|Public register of shareholders and directors||Yes||Yes||Yes||Yes|
|LLC company allowed?||Yes||Yes||Yes||Yes|
|Annual audited financial statements||Yes||Yes||Yes||Yes|
Frequently asked questions
How to register a company in Spain free zone?In order to incorporate in the Spain free zone, our Clients will be required to apply for approval from the relevant from the authorities.
Next steps will include i) reservation of business name ii) preparation of incorporation documents iii) notarization of the documents and iv) tax and business license registration.
Do I need any resident directors to register a company in a Spanish free zone?No. A Spanish free zone company can be 100% foreign owned and does not need any local directors.
What is the corporate tax rate payable if I establish a Spain free zone companyCompanies in the free zone will have to pay corporate tax at the reduced rate of 4%, compared to the standard corporate tax rate of 28% .