Registering a branch in Spain
Guidance for businesses and international clients
A Spanish branch is an establishment of your existing foreign company, not a separate Spanish subsidiary. Start by comparing liability, tax treatment and administrative obligations before choosing the structure.
Branch or subsidiary?
A branch has no separate legal personality: the foreign company remains responsible for its liabilities. A Spanish subsidiary, such as an SL, is a separate company. A branch has no general statutory minimum share capital, but still needs appropriate funding.
Neither option is automatically more tax-efficient. Compare the activity, management, financing, expected profits and the applicable tax treaty. A VAT registration is a different procedure and cannot by itself resolve a permanent-establishment issue.
Permanent establishment and tax obligations
A Spanish branch normally constitutes a permanent establishment for the foreign company. Income attributable to it must be assessed under Spain’s non-resident income-tax rules and the applicable treaty.
VAT, withholding and employer obligations depend on the transactions and workforce. Tax-treaty definitions can differ from domestic rules; an office, dependent agent or project should be assessed on its facts rather than a universal duration test.
Documents and registration process
- Confirm the parent company’s decision, branch activity, Spanish address, representative and powers.
- Obtain current evidence of the company’s existence, constitutional documents and representation. Check legalisation or apostille and sworn translation where needed.
- Arrange the necessary Spanish tax identification, notarial deed and registration with the relevant Mercantile Registry.
- Set up tax filings, electronic representation and, where applicable, employer registration and employee onboarding. Banking requirements depend on the planned operation.
Annual accounts and continuing administration
Do not assume that a branch has no annual-account obligations. Foreign companies with Spanish branches must deposit the relevant accounts under articles 375 and 376 of the Mercantile Registry Regulations. The required documents depend on the parent’s accounting rules and their equivalence.
Keep branch accounting, tax returns, changes of representative and corporate updates coordinated. We can review the structure and confirm the registration and ongoing service scope before you commit.
Frequently asked questions
Does a branch protect the parent from Spanish liabilities?
No. It is part of the foreign company, which remains responsible for branch obligations.
Can we use a VAT number instead of registering a branch?
Only if that matches the actual activity and legal obligations. VAT identification does not decide whether a permanent establishment or branch registration is required.
Tell us what your business needs
Share the planned activity, countries involved and any deadlines. We will confirm the information needed, the service scope and a case-specific quotation.
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Official sources
Sources are published in the issuing organisation’s language.
General information. Requirements depend on the activity, documents and applicable rules.