- Most common alternatives for starting a business in
Spain:
1.1. Direct hiring of employees by a foreign
company.
This alternative is becoming more and more common for EU
companies that want to expand their markets to Spain.
It only requires the registration of the company with the
Spanish tax and social security authorities.
Obligation to pay payroll tax and social security contributions.
Care must be taken to ensure that a permanent establishment is not
created, which could generate the obligation to pay corporation
tax.
1.2. Permanent establishment/branch.
A permanent establishment can be set up simply by registering as
an entrepreneur with the tax authorities, or by setting up a branch
dependent on the parent company. The branch office must be entered
in the relevant commercial register.
