If you are reading this article, you are probably planning to open your firm or company in Spain. And you certainly need to know what powers a non-resident tax representative has in Spain. Whether you want to hire a tax representative of your own volition. or you are obliged by law, this information will be useful to anyone who wants to do business in Spain as a foreigner.
To answer the most common questions, we will explain why you, as a non-resident, need a tax representative in Spain, what is the difference between “compulsory” and “voluntary” cases and discuss the main points you need to know to make a decision.
Simplified business process
A tax representative in Spain for non-residents is a individual or a legal entity through which foreign companies that want to do business in Spain can buy and sell. An important advantage of setting up a company in Spain is that it is one of the few countries where foreign entrepreneurs are allowed to work in Spain under the same conditions as Spanish citizens.
However, it is not all that simple. First you need to go through a number of different administrative procedures and processes. And for this you will need a tax representative in Spain. With his help, you will be able to carry out all the procedures easily, simply and completely legally. Of course, you must appoint one before you start any commercial transaction that is taxable in Spain. And, of course, you will still be liable to pay taxes in the country of which you are a citizen for the income generated by your activities.
Having a tax representative will allow you to:
– Communicate, work and develop your business with Spanish companies, avoiding the difficulties inherent in a country you do not know, as well as bureaucracy and language barriers.
– Perform all activities legally, avoiding sanctions and fines
– Develop your business without living in Spain
Is it compulsory to have a tax representative in Spain for non-residents?
Having a legal and tax representative is not always compulsory, although it is recommended if you want to set up a company in Spain without being resident. In fact, it can be “voluntary” or “compulsory” depending on the case; in the second case, having a tax representative is mandatory.
“Voluntary” and “compulsory” case
- If your company is based in the European Union, the tax representative in Spain will be a person who acts as an intermediary or manager in the tax office (la Agencia Tributaria), employees of such services, etc.
- If your company is based in the European Union, the tax representative in Spain will be a person who acts as an intermediary or manager in the tax office (la Agencia Tributaria), employees of such services, etc.
- If your company is not based in the EU (except Norway), the representative will be the legal person through whom the company can pay Spanish VAT (Impuesto del Valor Añadido).
- Besides the location of your company, its type of business, what it does, also affects the need or obligation to have a tax representative in Spain for non-residents. If your business involves importing goods to/from Spain, or you wish to have a permanent representative (for VAT purposes), you will need to appoint a representative as a matter of course.
- If your business involves importing goods to/from Spain, or you wish to have a permanent representative (for VAT purposes), you will need to appoint a representative.
Do not hesitate: in addition to the fact that a tax representative is essential in solving problems, he will also be your main assistant and will save you a lot of headaches.
Functions of a tax representative in Spain for non-residents
You have appointed your tax representative in Spain, congratulations! You already have a “right hand” in Spain who can handle complex and tedious processes, especially if you live abroad and cannot represent yourself and your company in Spanish.
1. Obtaining an EORI number (registration and identification of economic operators for import and export companies operating in the EU).
2. Obtaining a CIF number for non-residents.
3. Submission of a VAT return.
4. Ongoing and flexible communication with the Spanish Internal Revenue Service.
As you can see, there are many processes and procedures that a tax representative can facilitate: this is why so many foreign companies in Spain entrust them with their business.
If you want to run your business in Spain, our team of experts with extensive experience is ready to help you in this endeavor.
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