Establish a Branch in Spain
Details on how a foreign company can open and operate a branch in Spain, with support from our team of consultants in Spanish company formation.
Opening a branch in Spain in 2026 is an easy process that can be handled through our online services. Please explore this article and get in touch with our Spanish agents for assistance in opening such an entity.
| Quick Facts | |
|---|---|
| Applicable legislation | For foreign countries |
Best used for | – banking, – financial operations, – insurance |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Approx. 6 weeks |
| Management | Local, but not mandatory |
| Legal representative required | Yes |
| Local bank account | Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Fully liable for the branch office’ obligations |
| Corporate tax rate | 25% |
| Possibility of hiring local staff | Yes |
Can a branch in Spain be 100% foreign owned?
Yes.
What are the key features of a branch in Spain?
- activates under the same name as the foreign company,
- develops the same activities as the parent firm,
- it is not a separate legal entity,
- can engage in local partnerships/contracts,
- must report to the parent company, etc.
Who controls or oversees a branch in Spain?
The foreign company.
This infographic provides information about some of the benefits of branches in Spain:
Where is branch registration done in Spain?
At the Commercial Registry or Registro Mercantil in Spanish.
Is there a minimum share capital for setting up a branch in Spain?
No. The parent company may optionally allocate capital to the branch.
What legal entity is recommended for opening a branch in Spain?
None: a branch is not a separate legal entity. If a separate Spanish company is preferred, the usual choice is the SL (a subsidiary).
Who can manage a branch in Spain?
The branch representative/director.
NOTE: The structure does not have a formal administrative body, and it can only appoint a local representative.
What are the key requirements to open a branch in Spain in 2026?
- a formal resolution stating the creation of a branch in Spain must be drafted by the foreign company,
- the branch name in Spain must be verified and reserved,
- the Articles of Association and the Certificate of Good Standing are necessary for establishing a branch in Spain,
- the branch must obtain the NIF, which is the Spanish tax ID,
- in the case of foreign directors and branch representatives, they will need a NIE, the Foreigner Identification Number issued for foreigners in Spain,
- NIF will serve to register the branch for tax purposes in Spain.
NOTES:
- all documents must be translated into Spanish, notarized, and apostilled,
- declaring the business activities of a branch in Spain is done with the Form 036,
- the employees of the branch will be registered with the Social Security in Spain.
Can I get support for opening a Spanish bank account for my branch?
Sure. Our Spanish agents can manage the conditions imposed by the banks, including Anti-Money Laundering and Know Your Customer rules.
What is the time frame to incorporate a branch in Spain?
About 6 weeks.
What is the taxation of branches in Spain?
25% corporate tax rate.
Are branches protected by the double tax treaties that Spain has signed with countries worldwide?
Yes.
Are there any updates for branches in Spain in 2026?
- large companies required to publish non-financial information must calculate and publish their carbon footprint and a five-year reduction plan under Royal Decree 214/2025, following new rules in this regard,
- the authorities continue to implement digitalization systems in Spain in various sectors of interest, where the focus is on 5G, artificial intelligence, and other digital competencies.
The process of registering a branch in Spain in 2026 depends on the accuracy of the documents and information provided to the authorities. For more details regarding this subject, investors may contact our Spanish agents. We can manage the formalities for setting up a company in Spain.
Federico Richardson Alborna, Attorney at Law · 2 October 2026Federico Richardson Alborna is the founder of Lexidy Law Boutique SLP and a University of Navarra graduate.