The holding company in Spain is a legal entity that administers shares in other companies and/or foreign subsidiaries. Usually, this type of company does not have other economic activities apart from managing and organizing the financial resources in other legal entities. Our experts in company formation in Spain can help you open a holding company and manage this type of entity.
| Quick Facts | |
|---|---|
| Legal entities used | Private or Public Limited Liability Company |
|
Incorporation method |
With the Spanish Commercial Registry |
|
Incorporation time |
Around 3 weeks |
| Advantages |
Fast Incorporation, simple procedures |
| Precautions |
It must have a tax identification number |
| Shareholding structure |
1 shareholder |
| Minimum Capital |
EUR 3,000 |
| Taxation | 30% corporate tax, but lower rates apply in certain conditions |
| Control | Foreign ownership permitted |
| Accounting and Reporting | Standard accounting rules |
| Number of double taxation treaties | 91 |
Table of Contents
What are the formalities for opening a Spanish holding company?
A Spanish holding company can be formed as a limited liability company or as a public limited company. In the case in which the selected company type will be the limited liability company, the holding company will need a share capital of EUR 3,000, or EUR 60,000 for a public limited company. Our team of specialists in company registration in Spain can assist with information on its characteristics. Here are other requirements to consider when opening a holding company in Spain:
- once the company is founded, it is necessary to apply for a tax identification number and to have the company registered with the Spanish Commercial Registry. A particularity of the procedure of company formation in Spain for a holding company is that the investors have to prepare an assessment form that has to be deposited with the Spanish Treasury;
- the minimum share capital must be deposited in a bank account linked to the business. Entrepreneurs can opt for local banks in Spain as well as for subsidiaries of foreign banks;
- NIF is the Spanish Tax Identification Number that must be obtained before opening a holding company in Spain. Our specialists in tax matters can guide you on the formalities and procedures required;
- the Corporation Deed must be completed before a notary in order to be valid;
- the holding company in Spain then has to be registered with the Social Security.
A holding company in Spain can be registered by local investors, but also by foreign businessmen. In the case in which the holding company will have foreign shareholders, their capital contribution has to be notified with the Spanish Ministry of Finance. From an accounting point of view, this type of company is obliged to follow the standard accounting procedures that are required for other types of companies. Here is an infographic with details about Spanish holding companies:
What is the tax system applicable to a Spanish holding company?
The holding company in Spain can obtain a set of tax exemptions; although this type of company is not charged with certain taxes that are imposed to commercial companies, it is still liable for taxation in this country. Businessmen who are interested in finding out more details on the taxation regime applicable to this structure must know the following:
- the Spanish holding company is regulated under the Law 43/95′;
- Spain is an attractive tax jurisdiction and it is now amongst the top 8 European countries for the formation of a holding company;
- the taxation of the income of a holding company is imposed with a tax rate of 35%;
- the company can benefit from an exemption on the withholding tax on dividends, as long as the holding company controls at least 25% of another business (registered in the European Union) for a period of minimum 12 months;
- the company can also benefit from a 5% participation exemption for non-resident shareholders, as long as the shares were held for at least 12 months;
- other tax exemptions can be obtained if the holding company owns at least 5% of the capital of a foreign company or if its participation in that company has a minimum value of EUR 6 million.
The shareholders of a Spanish holding company can be natural persons or legal entities, foreign or locals; our team of consultants in Spanish company formation can offer further information on the shareholding requirements available for this company type. The company can also be formed by a single shareholder and it is important to know that there are no limitations concerning the maximum number of shareholders the holding company can have in Spain.
More details on the Spanish holding company are available in the video below:
What else do you need to know about Spanish holding companies
A Spanish holding company is known as “Entidad de Tenencia de Valores Extranjeros” (ETVE). It is worth noting that the information of shareholders of a holding company registered in Spain is confidential, which means that their names will not be found at the Spanish Chamber of Commerce. The same holding company in Spain facilitates foreign business operations, without the obligation to pay dividend tax, but only a nominal tax rate of 1.24%.
You can find out more about the taxation of this business structure from our agents in company formation in Spain.
Benefits of a Spanish holding company
The Spanish holding company is incorporated as any other type of business entity. It can take the form or a private limited liability company or a public limited liability company. The required minimum share capital and minimum number of shareholders and directors depend on the chosen type of company to form a holding. The required capital is larger for a public limited company than for a private one.
The Spanish holding company benefits from certain tax exemptions for the received income (dividends and capital gains) if certain conditions are met. Also, the holding company has access to the reduced withholding tax rates available under the double tax treaties signed by Spain and other countries.
About the Spanish economy in a few lines
If you want to set up a company in Spain and you are interested in the holding entity, the following information could help you understand what kind of market you can operate in, as well as the economic direction of the country:
- an economic growth of approximately 2.6% is estimated for Spain by the end of 2025.
- in the first 9 months of 2025, the economy of Madrid (the capital city) grew by almost 2.9%.
- the unemployment rate continues to fall and is expected to be around 10% by the end of 2025.
- Spain’s economic growth is also due to foreign investment. Most foreign investment has been directed towards the construction & real estate sector in Spain.
- in terms of investment diversification, the collaboration between the Spanish government and the private sector will bring various incentives to support the development of the manufacturing sector, one of the important engines of the Spanish economy.
If you want to open a holding company in Spain, you can also benefit from other services too. For instance, you can collaborate with our accountants in Spain right from the start. Feel free to contact our specialists in company incorporation in Spain and receive step by step advice on the procedures that have to be followed in this case.