A trading company is an entity that covers all import and export operations and procedures by buying products in one country and selling them in different countries where it has its own distribution network. These companies mostly work with high volumes of products such as raw materials, generic pharmaceuticals and chemicals etc. An individual needs to fulfill several procedures when opening a trading company in Spain. The complexity of these procedures depends upon the type of company he/she wants to open in Spain.
Get in touch with our company formation experts, if you are interested to start trading in Spain to ensure a full understanding of charges, taxes, rebates that apply and licenses (if required).
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Legal considerations for international trade in Spain
To carry out import and export in Spain, some legal aspects need to take care of. It is necessary to seek legal advice from any regulatory entity in Spain, we recommend you to get assistance from our company formation experts in Spain. They will also help you in opening a trading company in Spain. If you are planning to export products to Spain, you must comply with the EU regulations regarding packaging and products. It is necessary that:
- The labels for drinks and food products to be in Spanish;
- The labels to include expiry date, instructions and all ingredients, country of origin etc.
You must need to observe these rules if you want to open a trading company in Spain. There are some additional items that you cannot introduce in Spain, for instance, some plants are prohibited from the introduction in this country, goods that inflict any kind of torture or punishment, and meat and dairy products from Libya, Tunisia, Morocco, and Algeria are also prohibited. Our company formation consultants will guide you regarding these prohibitions in detail and also assist you with company formation in Spain.
Interested in bookkeeping in Spain? We recommend that you contact our accountants and discover the services offered in this regard. All financial operations of a company are registered with the help of special documents and procedures. These will help in the preparation of annual financial statements, as well as reporting to the relevant institutions. Contact our team of specialists and discover how you can benefit from bookkeeping for your company.
Obtain import license in Spain
As an importer, if you are interested in trading in Spain, you must apply for an import license at any regional office or the Register of Spain’s Secretariat of Commerce. You must attach a commercial invoice that includes invoice number, net and gross weight, and C.I.F (cost, insurance and freight) price along with your license application. The import licenses once granted are valid for six months with the possibility of extension.
Obtain export license in Spain
Generally, there are three main stages to carry out trading in Spain as an exporter, which include: one-time registration process to get export license, export customs clearance formalities, and documentation needed to carry out exportation. To carry out Spanish international trade, the exporter needs to make sure that he/she has made all the accurate export documents that are necessary to get the goods delivered through the port, satisfy all compliance and regulations, clear customs and then load on board the pre-determined carrier.
As per the EU’s legislation, all member states are required to adopt the Economic Operators Registration and Identification number (EORI) scheme. So, Spain is an EU member state that also abides its rules. In compliance with this scheme, all importers, exporters and other transporters need to use a unique EORI reference number when they carry out their electronic communication with the government agencies involved in Spanish international trade or Customs. A separate rule named Integrated Tariff of the European Communities (TARIC code) is applied to some specific product when you start trading in Spain.
You can trust the services of our company formation experts if you are planning to start a business in Spain. Our experts will guide you regarding EU rules and regulations in detail and also assist you regarding Spanish international trade.
VAT on imports in Spain
If you want to start trading in Spain, then you must know that the import value added tax (VAT) applicable in Spain that must be paid by the importer is:
- Generally 21%, the reduced rate is 10%, whereas the super-reduced rate is 4%;
- The threshold for VAT application is EUR45 for shipment between individuals and EUR22 for shipment sent by companies.
Contact our company formation experts if you are planning to start trading in Spain. This process is a bit complicated so our experts will give a detailed knowledge on custom duty in Spain and they will assist individuals to start a trading company in Spain.