For businesses operating in Spain, compliance with local accounting and tax regulations is a key part of maintaining smooth operations and avoiding unnecessary penalties. One often overlooked—but legally required—obligation is the annual legalisation of statutory books (legalización de libros oficiales). This process, overseen by the Spanish Commercial Registry (Registro Mercantil), ensures the transparency and integrity … Read more
Imagine that you and your business partners are about to launch a new venture. You are ready to incorporate a company and begin trading. However, if there is a possibility that you might sell the company in the future and wish to maximise your returns, there is a strategic move that could make a significant … Read more
From July 2025, all landlords who rent out a property on a daily or weekly basis will have to register on a new national database. The government is further increasing regulations on holiday rentals with the creation of the Register for Short-Term Rentals.Royal Decree 1312/2024, approved in December, increases control over the property market, in … Read more
In today’s globalised world, more and more professionals are choosing to build their careers abroad. Whether it’s for better job opportunities, a change of lifestyle, or simply the chance to try something new, many Spanish employees are making the move and settling in other countries. Starting a new life abroad can be exciting, but it’s … Read more
A recent case has raised an important question for employers: What happens when an employee requests paid leave for a legitimate reason but is later found to have misused it?One employer faced this dilemma when an employee took five days of paid leave to care for their hospitalised mother—only to be caught on social media … Read more
In Spain, a dormant company, known as an “inactive company,” is one that has ceased trading but has not been formally dissolved. Despite not engaging in business activities, these companies still have certain legal obligations to fulfill: By adhering to these obligations, dormant companies in Spain can maintain compliance with legal requirements and avoid potential … Read more
What is the Golden Visa and how could it be obtained? The Spanish Golden Visa, introduced in 2013, was a measure designed to attract foreign investment by granting legal residency to non-EU citizens who made a substantial investment in Spain. It was not just a visa, but a fast track to residency, with highly attractive … Read more
What is M202 and who is required to file it? Businesses and entities operating permanently in Spain, as well as those under an attribution of income regime that were established outside Spain but maintain a presence in the country, are required to submit M202. This form serves as an advance payment of the Corporation Tax … Read more
If your company rents properties, you may think that your company has a business activity. However, for this activity to be considered an economic activity and not just a rental activity, the tax authorities have a key rule: you need a full-time employee.The problem is that this requirement is not interpreted in the same way … Read more
When business partners who actively work in their company consider extra compensation, they usually have two options: receiving a salary bonus or taking dividends. The choice isn’t always straightforward, as each option has different tax implications and costs. Understanding these differences can help determine the most beneficial route. A salary bonus is treated as regular … Read more
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