Spain Company Formation Benefits

What are the benefits of company formation in Spain? Foreigners can own all the shares in a Spanish company. Spain also has a low minimum share capital requirement. The Spanish government has several incentive schemes in place to encourage investment in underdeveloped regions and to hire young workers to lower the youth unemployment rate.  Spain also has the world’s most attractive tourism industry.

What are some other company formation benefits in Spain? 

There is a dividend and capital gain tax exception for funds coming from subsidiaries as long as you have held the shares for a year, and they are worth the equivalent of 5% of the subsidiary’s share capital, providing the subsidiary is not registered in a deemed tax shelter. The legal parallels in Spanish corporate law make Spanish companies an ideal investment vehicle for the Latin American market.

spain company formation benefits

The benefits of company formation in Spain are:

  • Wealth of incentive schemes in Spain for investments in underdeveloped regions and to incentivise hiring young people
  • Spanish companies are ideal investment vehicles for entering Latin America
  • Exception on dividend and capital gains taxes from subsidiaries if conditions are met
  • Low minimum share capital requirement
  • Spain was ranked the world’s most competitive tourism market in 2019 according to the World Economic Forum
  • 100% foreign ownership of shares permitted
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