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BBCC Consulting LTD | Opening of representative offices in Spain
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Opening of representative offices in Spain

Opening of representative offices in Spain.

At the time of implanting in Spain there are different possible options. One of them is the opening of a representative office. This modality does not have its own legal personality independent of its parent company, so there are no formal administrative bodies.

Therefore, the actions carried out by this office are carried out by the representative of said office in virtue of the powers granted. The activities of the representative office are limited, since they can only perform auxiliary tasks (such as market studies, preparatory work for contracts, etc.) but not the main activity of the company.

In the event that the functions of a representative office exceed these auxiliary services, the Tax Agency may interpret that the foreign company has a permanent establishment and will force it to be taxed in Spain. The non-resident company is responsible for the debts contracted by the representative office.