Success tips when doing business in Spain in 2023
- Knowing few words in Spanish prior to your business meeting always creates a good impression;
- All meetings in Spain should be pre-arranged as walk-in approach towards a serious business meeting is not appreciated;
- Our Clients should start with a formal handshake, while maintaining direct eye contact with their host, followed by business card exchange;
- Hierarchy is important in Spanish business culture and all decisions are made by the senior manager present at the meeting;
- The locals enjoy meals as a social activity. Furthermore, it is not necessary to discuss business at the table.
Other useful tips
- A proper exit strategy is important in order to map out potential accomplishments in the future;
- Operating a version of your website in Spanish is an ideal way to reach many new Clients;
- Checking the English-proficiency of the counterparty is preferred as there may be a need of an interpreter.
Interesting facts about Spain?
Business and economics
- The Spanish GDP per capita is estimated at US$27,520;
- Spain produces the largest amount of renewable energy in the World;
- The unemployment rate in Spain is moderately high at 17% in 2017;
- Debt to GDP ratio is still one of the highest in the European union at 98.9% as of end 2016;
- Tourism is a vital source of income for the Spanish economy, with numbers of tourists reaching record 75 million in 2016.
- Spain is moderately flat country surrounded by rigged hills and the Pyrenees Mountains in the North;
- The country is located on most of the Iberian Peninsula;
- There is a specific type of hot wind found in Southern Spain called sirocco;
- Droughts are common in the central parts of Spain; however, the Galicia region is very green, often called “Green Spain”;
- Spain is a moderately large country in Europe with 505,988 square kilometers of land.
Society and culture
- There are several major ethnic groups in Spain, including: Castilian (75%), Catalan (16%), Galician (6.5%) and Basque (2%);
- The Government in Spain represents a Constitutional Monarchy with a King as head of state, however with limited powers;
- Following the Spanish civil war of 1936 to 1939, the country was led by a military dictator called General Francisco Bahamonde, however following the European Union in 1986, the country prides itself as a free and democratic economy;
- Spain is a 94% Roman Catholic country, however during its history, there were multiple religions present the country in high percentages of the population;
- Many regions in Spain have their own, traditional cuisine, which makes the country attractive for returning tourists interested to explore different places.
Frequently asked questions
How many directors are required for starting a business in Spain?Only 1 director is required when registering a company in Spain.
How many shareholders are required for registering a company in Spain?Only 1 shareholder is required for business registration in Spain.
Is it mandatory to have a resident director or shareholder for Company Registration in Spain?No. Resident director/shareholders are not required for registering a company in Spain.
How to register a business in Spain?For business registration, our Client will be required to i) reserve the company name ii) supply the Spain office lease agreement iii) sign the company setup forms iv) register for tax and social security and v) obtain a business license.
Healy Consultants’ experts are company registration specialists and will assist our Clients at every step.
Can Healy Consultants assist my firm with Spain subsidiary company registration?
How difficult is it to open a corporate bank account for a Spanish company?It is very easy to open a corporate bank account with a reputable international bank in Spain.
What is the minimum number of directors required for a Spanish company?A Spanish company needs a minimum of one director.
Is a resident director required?A resident director is not required for Spanish company incorporation.
What is the minimum number of shareholders required for a Spanish company?A Spanish company requires a minimum of one shareholder.
Are shareholder/director details available for public viewing?Yes.
What are the minimum capital requirements for a Spanish company?A Spanish company requires a minimum share capital of €3,000 (US$4,342).
Is a Spanish company required to submit an annual return and/or financial statements?A Spanish company is obliged to submit an annual tax returns and audited financial statements.
How much tax does a Spanish company pay?A Spanish company is obliged to pay a corporate tax of 28%. The first €300,000 in profits are taxed at 25%.
Will there be restrictions in ownership if foreigners register a Spanish company?No. In most sectors, foreigners are allowed to own 100% of the Spanish company.
Will I be required to get a full audit if I setup a small business in Spain?An annual audit is mandatory for a PLC. An LLC can apply for exemptions under certain conditions i.e. for two consecutive years, i) the assets must be less than €2.8m ii) annual revenue is less than €5.7m and iii) less than 50 people are employed.