How long does it take to begin doing business in Spain?

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Doing business in Spain does not necessarily require setting up a subsidiary or branch, nor does it always involve significant upfront investment. If your foreign company wishes to operate in Spain in an agile manner, there is a much faster and more cost-efficient alternative: obtaining a non-resident NIF (often referred to in practical terms as a “non-resident CIF”).

In this article, we explain how long it takes to start operating in Spain, the steps involved, and the tax and legal obligations you must comply with in order to avoid unnecessary risks.

Uses of a non-resident NIF

A non-resident NIF may be used, among other situations, to:

• Organise an event in Spain (training course, exhibition or conference).
• Import goods into Spain.
• Sell products online to consumers.
• Sell products to Spanish companies.
• Install technical equipment.
• Provide telecommunications services.
• Appoint a person in Spain to carry out market research in a specific sector.

How can I obtain a non-resident NIF?

The process to obtain a non-resident CIF or NIF generally involves the following steps:

1. Drafting of the power of attorney

The foreign company must grant a power of attorney in favour of LEIALTA. This document is prepared by us and must grant the necessary powers to carry out all procedures required to obtain the non-resident NIF and the electronic certificate.

The power of attorney must also appoint a LEIALTA partner as tax representative in Spain, authorised to act before the Spanish Tax Agency. The usual timeframe for drafting the power of attorney is one day.

2. Translation and Hague Apostille

The power of attorney must be translated into Spanish and duly legalised with the Hague Apostille. In this context, the Hague Apostille is an international legalisation mechanism that certifies the authenticity of documents for use abroad.

In practice, the timeframe for translation and apostille depends on the country of origin and the client. As a general guideline, this step can often be completed in approximately one day. Once ready, the full documentation must be sent to LEIALTA for processing.

3. Additional corporate documentation

Together with the power of attorney, documentation proving the existence of the foreign company and the identity of its legal representatives must be provided. This documentation is typically issued by the Commercial Registry or equivalent authority in the company’s country of origin.

At this stage, the following additional steps may also be required:

• Obtaining an NIE for the company’s authorised representative. This usually takes between 1 and 3 days, depending on the availability of the Spanish Tax Agency.
• Application for the non-resident NIF before the Spanish Tax Agency, which is generally resolved within 1 to 3 days.
• Obtaining the electronic certificate, required to operate electronically with the Spanish tax authorities. This is usually completed within a similar timeframe.
• Electronic registration of the NIF, which is typically completed within one day, subject to administrative availability.

4. Appointment of the tax representative

The company must formally appoint a tax representative with tax residence in Spain. This appointment enables the representative to act before the Spanish Tax Agency and to comply with certain tax obligations on the company’s behalf. This step usually takes one day.

Timeframes and additional considerations

Estimated timeframe to start operating in Spain

In general terms, provided that the documentation is properly prepared, a foreign company can begin operating in Spain within a short timeframe. This may range from a few days to several weeks, depending on whether additional procedures are required.

Additional registrations depending on the activity

Depending on the specific activity, it may be necessary to apply for additional registrations, such as the Register of Intra-Community Operators (ROI) or the deferral of import VAT. The timeframe for these registrations depends on the administrative calendar and the company’s particular circumstances.

Subsequent tax and employment obligations

Once the process is completed, the company will be registered with the Spanish Tax Agency and will be able to file and pay the relevant taxes. As a general rule, the company will be required to declare and pay VAT, without the need to file Corporate Income Tax, provided that no permanent establishment exists in Spain.

If the company needs to hire employees in Spain, it will also be necessary to register as an employer with the Spanish Social Security system.

When it may be advisable to set up a Spanish company

As activity in Spain grows, the workforce increases, or an office or commercial premises is leased, it becomes necessary to assess whether the incorporation of a Spanish company is legally required. In such cases, this would entail additional tax, accounting and corporate obligations.

Operating in Spain with legal certainty

In short, these procedures allow a foreign company to start operating in Spain quickly and efficiently. However, they require a solid understanding of Spanish tax and corporate regulations, as well as proper planning from the outset.

For this reason, it is highly advisable to work with a specialised business consultancy with experience in assisting foreign companies operating in Spain and the ability to manage procedures in a secure, compliant and efficient manner.

At LEIALTA, we support foreign companies and investors throughout the entire process, from obtaining the non-resident NIF and appointing the tax representative, to assessing when it becomes advisable to incorporate a Spanish company, providing comprehensive advice tailored to each stage of the business.