BORRADOR

REAL ESTATE LAWYER | Comprehensive Property Conveyancing Services in Spain

The Complete and Independent Guide for International Property Investors in Spain

Purchasing real estate in Spain as a foreign buyer is an exciting venture, but it involves navigating a complex landscape that differs significantly from the systems in the US, UK, or other European nations. The Spanish real estate market operates under the principle of caveat emptor, which translates roughly to “buyer beware.” Therefore, having expert real estate lawyers by your side is crucial to ensuring a smooth, secure transaction that safeguards your assets and investment capital.

Our team consists of specialized real estate property lawyers, property lawyers, and lawyers property experts with decades of experience dealing with cross-border investments. Whether you are searching for a real estate lawyer in Barcelona or looking for a real estate solicitor across any other region in Spain, our independent real estate attorney team works exclusively for you—without receiving commissions from third parties like banks or agencies.

The following guide has been meticulously structured to provide an extensive, in-depth overview of the Spanish buying process, documentation requirements, financial implications, and ongoing legal responsibilities

The Importance of Independent Legal Representation

When you invest in Spanish property, real estate agencies or banks often offer to handle the closing procedures to speed up the process. However, their incentives may not align perfectly with yours, as they prioritize closing the sale rather than protecting the buyer’s long-term interests. Our independent real estate legal services ensure that your interests remain completely protected at every step of the acquisition.

Architectural Oversight

We uniquely include architectural insights as part of our core property lawyer duties. Our architects have decades of experience ensuring properties meet regulatory standards before you commit your funds. This prevents situations where a property appears visually appealing but violates local zoning laws or structural norms.

100% International Client Focus

We specialize exclusively in helping foreign buyers, expats, and non-residents. This means we anticipate the specific questions, language barriers, and bureaucratic hurdles you face when buying property from abroad.

Full Financial Independence

We do not accept referral fees or commissions from realtors, developers, or banks. This policy guarantees completely unbiased advice, ensuring we always act in your best interest.

Critical Due Diligence and Property Documentation

Before you make any down payment or sign preliminary agreements, our team conducts a thorough examination of the legal status of the property. In Spain, this process is known as due diligence. The following documents are essential for every acquisition:

The Registry Listing (Nota Simple): Issued by the Land Registry (Registro de la Propiedad), the nota simple is a fundamental document that verifies ownership, boundaries, and reveals any outstanding mortgages, liens, or historical debts. Relying on an official registry check prevents you from inheriting past financial burdens from the previous owner.

The Habitation Certificate (Cédula de Habitabilidad): This confirms that the home meets local building and health standards. It is a strict prerequisite for connecting essential utilities such as water and electricity. In many regions, buying a home without an updated habitation certificate means living without legal utility hookups.

Energy Performance Certificate (EPC): A mandatory environmental report detailing the property’s energy efficiency and carbon emissions. Sellers must provide this to buyers before the sale is finalized.

Community of Owners Certificate: If the property is part of a complex or apartment building, this certificate ensures the seller is currently on communal fees. Under Spanish property law, unpaid community fees can legally transfer to the new property owner in Spain.

Catastro Verification: This cross-references physical property boundaries with official land registries to prevent future disputes regarding the actual square footage and parcel limits.

Avoiding Common Pitfalls and Investment Risks

Navigating the market successfully requires recognizing potential red flags. Here are some of the most common issues international buyers encounter in Spain:

Unregistered or Illegally Built Properties

A common trap is purchasing a bargain property that lacks proper registration, often because it was constructed without the required permits. Many unregistered properties are targeted at foreigners because they are less likely to check the registration. To protect your investment, always request a nota simple to ensure the structure is properly recorded.

Complex Broker Networks and Transparency Issues

Sometimes, transactions involve too many intermediaries, complicating communication and increasing hidden commission fees. In the worst case scenario, our legal team will speak to all brokers involved just to verify the true owner.

Multiple Purchase Agreements

In rare cases, sellers may accept multiple offers or down payments. Under current legislation, the property legally belongs to the first buyer who registers the deed at the Property Registry. If you are the second person to sign but the first to register, the rules can be complicated; if you find yourself as the second buyer, you are entitled to compensation and a return of the deposit. Working with experienced real estate law services prevents such scenarios through timely, secure escrow arrangements.

Construction Delays and Defects

If you are buying off-plan, your contract must feature a strict completion deadline backed by penalties. If the project is delayed or delivered with defects, the developer’s description and architectural plan have the value of a contract. If the seller is not willing to include a clause agreeing to return all payments with interest if the deadline is not met, we recommend reconsidering the purchase.

The Arras Contract: Securing Your Investment

The Contrato de Arras is one of the most critical stages in the Spanish real estate process. It functions as a preliminary reservation agreement, officially removing the home from the market while detailing the conditions of the sale.

The 10% Deposit: Buyers usually pay a 10% deposit upon signing this contract. If the buyer defaults, the deposit is forfeited to the seller. If the seller defaults (e.g., they receive a better offer and back out), they must pay double the deposit amount (Arras Penitenciales).

Suspensive Clauses: Our real estate legal services include drafting protective clauses. For example, we make the purchase conditional on your mortgage approval. This protects your deposit if the bank rejects your financing application.

The Financial Roadmap: Taxes, Notary, and Additional Costs

When calculating your budget for an international purchase, the purchase price is only a portion of the total expense. Buyers should allow approximately 12% to 15% of the property value to cover legal and governmental costs:

Transfer Tax (ITP): Applicable for resale homes, ranging from 6% to 10%, varying by regional autonomous community.

VAT (IVA): Applicable for brand-new properties instead of the transfer tax, at a rate of 10%.

Notary & Registry Fees: Calculated on a sliding scale based on property value and document complexity.

Plusvalía Municipal: A local tax on the appreciation of land value.

Essential Steps for Foreign Nationals and Expats

To ensure your investment complies with current legislation, our property and legal experts guide you through the initial requirements:

NIE Application: The Número de Identidad de Extranjero is your mandatory identification number in Spain. You cannot sign deeds, open accounts, or pay taxes without it. We streamline the entire process, managing applications through the police station or consulate via a Power of Attorney.
Bank Accounts and Currency Exchange: You will need a local Spanish bank account to complete the transaction via banker’s draft. We help you find favorable foreign exchange solutions to avoid excessive commissions when transferring large sums of money.
Mortgage Sourcing: Our team coordinates valuations (tasaciones) and reviews the fine print of your mortgage offer to eliminate unfair clauses (such as floor clauses or hidden insurance requirements).

Ongoing Support and Post-Completion

Our assistance does not end at the notary appointment when you receive the keys. We provide full-service support for long-term ownership protection:

Utility Transfers: We facilitate the transfer of electricity, water, and broadband contracts into your name.

Tax Compliance: We advise you on your obligations as either a resident or non-resident property owner.

Spanish Wills: To prevent your Spanish assets from becoming trapped in international probate, we highly recommend drafting a Spanish Will tailored to your property holdings. This ensures your assets pass smoothly to your beneficiaries.

Frequently Asked Questions

Can I buy a property in Spain without traveling to the country? Yes. You can grant us a Power of Attorney (Poder Notarial), and our attorneys can represent you throughout the entire closing process, from signing the preliminary contracts to receiving the keys.

Are house inspections mandatory in Spain? While standard structural inspections are not legally required by law, buildings over 50 years old are often subject to a Technical Building Inspection (Inspección Técnica de Edificios – ITE). We coordinate with qualified engineers and architects to ensure your property is structurally sound.

How do I know the true market value of the property? You can request an independent appraisal from a certified firm or use online valuation tools such as Sociedad de Tasacion, Idealista, or Fotocasa to get a realistic view of the market’s price per square meter.

Can you represent me in the sale of my property in Spain? Yes. We can represent you during the sale of your property, ensuring you fulfill your tax obligations and reclaim any withheld retainers if you are a non-resident.

The Importance of Independent Legal Representation

Architectural Oversight

100% International Client Focus

Full Financial Independence

We do not accept referral fees or commissions from realtors, developers, or banks. This policy guarantees completely unbiased advice, ensuring we always act in your best interest.

Critical Due Diligence and Property Documentation

Catastro Verification: This cross-references physical property boundaries with official land registries to prevent future disputes regarding the actual square footage and parcel limits.

Avoiding Common Pitfalls and Investment Risks

Navigating the market successfully requires recognizing potential red flags. Here are some of the most common issues international buyers encounter in Spain:

Unregistered or Illegally Built Properties

Complex Broker Networks and Transparency Issues

Multiple Purchase Agreements

Construction Delays and Defects

The Arras Contract: Securing Your Investment

The Financial Roadmap: Taxes, Notary, and Additional Costs

Transfer Tax (ITP): Applicable for resale homes, ranging from 6% to 10%, varying by regional autonomous community.

VAT (IVA): Applicable for brand-new properties instead of the transfer tax, at a rate of 10%.

Notary & Registry Fees: Calculated on a sliding scale based on property value and document complexity.

Plusvalía Municipal: A local tax on the appreciation of land value.

Essential Steps for Foreign Nationals and Expats

To ensure your investment complies with current legislation, our property and legal experts guide you through the initial requirements:

NIE Application: The Número de Identidad de Extranjero is your mandatory identification number in Spain. You cannot sign deeds, open accounts, or pay taxes without it. We streamline the entire process, managing applications through the police station or consulate via a Power of Attorney.
Bank Accounts and Currency Exchange: You will need a local Spanish bank account to complete the transaction via banker’s draft. We help you find favorable foreign exchange solutions to avoid excessive commissions when transferring large sums of money.
Mortgage Sourcing: Our team coordinates valuations (tasaciones) and reviews the fine print of your mortgage offer to eliminate unfair clauses (such as floor clauses or hidden insurance requirements).

Ongoing Support and Post-Completion

Our assistance does not end at the notary appointment when you receive the keys. We provide full-service support for long-term ownership protection:

Utility Transfers: We facilitate the transfer of electricity, water, and broadband contracts into your name.

Tax Compliance: We advise you on your obligations as either a resident or non-resident property owner.

Frequently Asked Questions

The Complete Legal and Corporate Guide for Company Formation in Spain

Expanding your enterprise into Spain provides a strategic gateway to the broader European Union market. Nevertheless, dealing with the complex Spanish administrative framework—ranging from the Mercantile Registry to Tax Office compliance—demands precision and specialized knowledge. Our law firm delivers an all-inclusive, turnkey solution that oversees the complete legal lifecycle of your new Spanish corporate entity. Whether your goal is the formal creation of a corporate entity or you simply wish to establish a new commercial presence, our team ensures that your corporate structure is established efficiently and securely.

Executing a proper company formation process ensures that your assets are protected from the very beginning. From the moment you begin to establish a legal entity or initiate corporate incorporation, our experts guide you through every step of the legal landscape.

The following comprehensive guide outlines the structure, processes, tax obligations, and ongoing compliance requirements necessary to set up your business properly.

The Importance of Professional Legal Representation

When you consider starting a business in Spain, real estate agencies, local brokers, or banks might offer to handle the closing procedures to accelerate the timeline. However, their incentives may not align with your long-term goals, as they typically prioritize closing the sale rather than protecting the corporate entity’s future interests. Utilizing our independent legal services guarantees that your corporate structure remains completely safeguarded at every stage of the setup.

Architectural and Corporate Oversight

Our team includes specialists with decades of experience ensuring your corporate setup meets all local regulatory criteria before you commit your capital. This proactive due diligence prevents situations where an entity appears functionally sound but violates local zoning laws, employment regulations, or structural compliance requirements.

100% International Client Focus

We specialize in serving foreign founders, international parent corporations, non-resident directors, and global entrepreneurs. We understand the specific questions and bureaucratic challenges that arise when managing cross-border incorporations.

Full Financial Independence

We do not accept referral commissions or hidden fees from banks, realtors, or accounting software providers. This independence guarantees completely unbiased, transparent advice that acts strictly in the best interest of your enterprise.

Strategic Legal Advisory and Corporate Structure

We serve as your local legal partners rather than simply processing paperwork. Choosing the right corporate entity and determining its relationship with the parent organization or international shareholders requires a deep understanding of Spanish mercantile law.

Entity Types: Sociedad Limitada (SL) vs. Sociedad Anónima (SA)

Sociedad Limitada (SL): The SL is the standard limited liability structure in Spain, closely resembling a US LLC or a Private Limited Company. It requires a minimum share capital and is well-suited for both small businesses and large holding companies.

Sociedad Anónima (SA): The SA is designed for larger corporate entities and requires a significantly higher minimum share capital.

Shareholder Protection

We draft bespoke bylaws and corporate governance protocols tailored to protect the interests of all founding members and shareholders.

Remote Incorporation: Sign from Anywhere

For many international founders, traveling to major cities such as Madrid or Barcelona is not immediately feasible. We specialize in Remote Incorporation via a Power of Attorney (PoA), allowing you to establish your business without leaving your home country.

Clear Guidance: We supply the precise, legally verified template for the Power of Attorney.
Legalization: We guide you through the process of obtaining the Apostille of the Hague and managing sworn translation requirements.
On-Your-Behalf Representation: Our attorneys sign the incorporation deeds at the notary, open the corporate bank accounts, and collect all official documents while you remain focused on your primary business operations.

The Pillars of Your Spanish Business Setup

To establish your enterprise in the region, several foundational requirements must be met:

1. The NIE Requirement

The Número de Identificación de Extranjero (NIE) is the mandatory tax identification number for all foreign individuals. Every director and shareholder of the corporate entity must hold an NIE. Our firm can streamline this process by coordinating with police stations or the Foreigners’ Office to avoid administrative delays.

2. Corporate Banking & Share Capital

Registering an SL requires a minimum share capital deposit of €3,000.

Account Opening: We assist in setting up a special “Company in Formation” account.

Capital Certification: We secure the bank certificate required by the Notary to prove the funds are deposited.

Full Activation: Once registration is complete, we ensure the account is fully functional for international wire transfers.

3. Corporate Address

Companies operating in Spain must have a registered corporate address in the country. This address appears in public searches and is where official documentation is received. Our firm can provide a registered office address as part of our ongoing corporate compliance services.

Step-by-Step Procedure to Establish Your Entity

The incorporation process consists of a sequence of well-defined administrative steps:

Name Reservation: Register the desired company name at the national Mercantile Register, ensuring the name is unique.
Drafting Statutes: Prepare the bylaws and constitutional documents for the corporation.
Tax Identification Number: Obtain a temporary tax ID for the company to proceed with the notary.
Notary Execution: Review all documentation and sign the deed at the notary’s office, in person or via our representative.
Tax Payment: Fulfill the local transfer tax and stamp duty requirements.
Final Registration: Register the entity at the provincial Mercantile Registry and publish the constitutional information in the official gazette.
Permanent ID: Obtain the permanent tax identification number, which serves as the official corporate and value-added tax number.

Documentation Requirements to Get Started

To initiate the process, we require:

A completed and signed service agreement.

Scanned, clear copies of the passport and NIE of the proposed director(s) and shareholder(s).

Three preferred company name options, listed in order of preference.

The Arras Contract and Alternative Investment Structures

When purchasing physical real estate or making large asset acquisitions, the preliminary reservation agreement is critical.

Deposit Requirements: A 10% down payment is typically required. If the buyer defaults, the deposit is forfeited; if the seller defaults, they must repay double the amount.

New Company vs. Off-the-Shelf Entity: We recommend forming a new company rather than purchasing an off-the-shelf entity, as transferring directors or existing titles within a legacy shelf company often takes longer than registering a brand-new entity.

The Financial Roadmap: Taxes, Notary, and Additional Costs

When calculating your budget, the share capital is only a portion of the initial financial requirements.

Share Capital: €3,000, which serves as the minimum required deposit for an SL.

Transfer Tax and Stamp Duty: Variable regional duties applied upon company constitution.

Notary and Registry Fees: Calculated on a sliding scale based on the complexity of the corporate statutes and the share capital value.

Corporate Tax Rate: A favorable rate of 15% applied to newly formed entities during the first two profitable years.

Essential Steps for Foreign Nationals and Expats

To ensure your venture complies with local legislation, our team guides you through the following requirements:

1. VAT and VIES Registration

Your company’s permanent tax ID also functions as your value-added tax number. If your business exchanges invoices frequently with other EU companies, we can register your entity in the EU VIES registry, allowing for tax-exempt transactions across the European market.

2. Ongoing Tax and Accounting Obligations

Founders must fulfill quarterly and yearly tax reporting obligations, maintain four separate accounting books, and present them annually to the Mercantile Register. These requirements apply even if the company reports zero financial movement during the period.

3. Residency and Visas

Forming a limited company does not automatically grant Spanish residency. However, if the business operates as a functional, ongoing entity, it can serve as the basis for an investment visa, digital nomad visa, or highly skilled worker visa.

Ongoing Support and Post-Registration Services

Our assistance does not end once the registration process is finalized. We provide full-service compliance support to ensure your business runs smoothly:

Digital Certificates: We handle applications for your digital signature certificate, which is required by the tax authorities to receive notifications and file returns.

Payroll and Accounting Services: By having corporate lawyers, accountants, and payroll specialists in the same office, all information passes seamlessly between departments without requiring your intervention.

Corporate Mail Management: We receive and process official correspondence and digital notifications from the government on your behalf.

Would you like to speak with an expert in corporate incorporation today to discuss your expansion plans? Contact us using the form below or call us at +34 617 608 069.

Frequent Questions

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Navigating Spain’s Unique Intra-Community VAT Regulations

Unlike many other EU Member States, holding a standard Spanish Tax ID (NIF) does not automatically grant the right to VAT-exempt intra-community transactions. To invoice other European companies without charging VAT, your entity must be formally registered in the Registry of Intra-Community Operators (ROI) and appear in the VIES (VAT Information Exchange System).

The Process: Securing Your Spanish EU VAT Number

Once your company is incorporated and registered with the Spanish Tax Agency (Agencia Tributaria), you must submit a specific application for EU VAT status. This secondary registration is mandatory for:

Spanish SL Companies looking to export services/goods to the EU.
Non-resident companies already holding a Spanish NIF/VAT number.

The ROI Inspection: Ensuring Compliance and Approval

The Spanish Tax Office maintains strict oversight regarding ROI applications. To prevent fraud, they often initiate a rigorous verification process. To ensure a successful application, your company must demonstrate:

Substance and Infrastructure: Proof of a dedicated physical office or operational headquarters in Spain.
Economic Reality: Evidence of current business activity, including draft invoices, activity reports, and contracts.
On-Site Inspections: Be prepared for a physical visit from tax inspectors who will verify that your company has a legitimate presence and local representation.

Professional Tax Representation for Faster Approval

The approval timeline for a Spanish EU VAT number can span several months. Our legal and tax experts streamline this procedure by preparing all necessary documentation and managing interactions with the Tax Agency. We ensure your business meets the “substance” requirements to avoid rejected applications or lengthy delays.

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Optimize Your Spanish Market Entry: Company Formation vs. Non-Resident Registration

Before committing to incorporating a Spanish SL, it is vital to evaluate your specific business model. Depending on your operational needs, registering your existing foreign company as a non-resident entity in Spain may be a more efficient and cost-effective alternative to creating a new legal subsidiary.

When to Choose Non-Resident VAT Registration

If your business activity does not require a physical office or a permanent establishment in Spain, you can leverage your foreign corporation to conduct business locally. This “Light-Entry” strategy is ideal if:

You intend to invoice Spanish clients directly from your foreign headquarters.
You do not require a dedicated physical infrastructure or local administrative headquarters.
You wish to hire employees in Spain under your foreign company’s payroll.

Cross-Border Tax Advantages & Compliance

Choosing the non-resident path offers significant tax optimization opportunities. By operating without a permanent establishment, your primary Corporate Income Tax obligations remain in your home country rather than Spain.

However, specialized compliance is still required:

Spanish VAT (IVA) Obligations: You must collect and remit VAT for transactions with Spanish entities.
Non-Resident NIF (Tax ID): Your foreign company must apply for a Spanish Non-Resident VAT number to operate legally.
Payroll Compliance: If hiring local staff, you must manage Spanish social security contributions through your non-resident ID.

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Essential Documentation for Foreign Company Registration in Spain

To successfully apply for a Spanish Tax Identification Number (NIF) as a non-resident entity, rigorous documentation is required. Ensuring your paperwork meets the Agencia Tributaria standards is the first step toward legal operation.

The core document package includes:

Corporate Bylaws & Articles of Association: Certified copies from your home country’s Commercial Registry.
Certificate of Good Standing / Registry Extract: Verifying company name, registered address, shareholders, directors, share capital, and date of incorporation.
Legal Representation: A valid passport copy of the company Director and a specialized Power of Attorney (POA) authorizing us to manage the application on your company’s behalf.

Compliance: Legalization and Sworn Spanish Translations

A common pitfall in Spanish company registration is the rejection of documents due to improper formatting. To be legally valid in Spain:

The Hague Apostille: All official foreign documents must be legalized with an Apostille (or equivalent consular legalization) to prove international authenticity.
Sworn Translations (Traductor Jurado): Every document must be translated into Spanish by an official Sworn Translator recognized by the Spanish Ministry of Foreign Affairs.

Warning: Failure to provide correctly legalized and translated documents will result in an immediate application denial, forcing a complete restart of the bureaucratic process.

Post-Registration: Bank Accounts and Social Security

Once the Spanish Tax Office verifies your documentation, a Non-Resident VAT/NIF Number will be issued. This identification is the master key for your Spanish operations, enabling you to:

Open a Spanish Corporate Bank Account: Essential for local transactions and tax payments.
Social Security Registration: Mandatory for hiring employees in Spain under your foreign entity.
Contractual Authority: Sign leases, utility agreements, and service contracts legally within Spanish territory.

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The Decline of Spanish “Shelf Companies” in the Modern Era

Under current Spanish Express Company Regulations, the traditional practice of purchasing a pre-existing “shelf company” has become largely obsolete. For international investors and entrepreneurs, the new company incorporation process is now significantly faster, more efficient, and more cost-effective than acquiring an aged entity.

Comparing Shelf Companies vs. Express Incorporation

While shelf companies were once seen as a shortcut, the administrative burden of a transfer now exceeds that of a fresh setup. After purchasing a shelf company, several mandatory steps cause significant delays:

Share Transfer & Modification Deeds: A new Notarial Deed must be executed to reflect the transmission of shares.
Structural Changes: Legal updates are required for the company name (Certificado de Denominación Social), registered address, and corporate purpose (objeto social).
Tax Office Reactivation: These changes must be re-registered and “re-activated” with the Agencia Tributaria, a process that often takes longer than a standard new registration.

The Advantages of Fresh Incorporation in Spain

Choosing new company formation via the “Express” route offers three critical benefits for your business:

1. Speed and Simplicity

Modern digital systems between Notaries and the Commercial Registry allow for rapid company registration. The process is streamlined, requiring fewer administrative layers than a complex share transfer.

2. Zero Liability Risk

The most significant advantage is financial security. When you incorporate a new Spanish SL, you start with a clean slate. With a shelf company, you risk inheriting undisclosed debts, hidden tax liabilities, or prior legal encumbrances that the seller may have failed to disclose.

3. Full Customization from Day One

Instead of retrofitting an old structure, a new incorporation allows you to tailor the Bylaws and Shareholder Agreements to your specific business model from the very beginning, ensuring full compliance with current 2026 Spanish regulations.

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Understanding the Legal Framework of a Branch in Spain (Sucursal)

Theoretically, a Spanish Branch is an extension of a foreign parent company rather than a separate legal entity. This structure is governed by specific regulations distinct from those of a Limited Liability Company (Sociedad de Responsabilidad Limitada – S.L.).

Historically, branches were designed for multinational corporations making substantial capital investments. However, the incorporation process for a branch is notably more complex, requiring extensive documentation from the parent company and creating a direct legal and financial link between the foreign headquarters and the Spanish operations.

Key Challenges of Opening a Spanish Branch:

Administrative Delays: The registration process is significantly longer due to the required synchronization of international corporate documents.

Consolidated Accounting Hurdles: Under Spanish tax law, a branch must submit the parent company’s global balance sheets alongside the local Spanish records.
Regulatory Misalignment: Differences in international tax deadlines and fiscal years often lead to complex compliance issues and potential penalties.

The Optimal Alternative: The Spanish Subsidiary (S.L.)

For standard commercial activities and SMEs planning an initial investment (starting at €3,000), we strongly recommend the incorporation of a Spanish Limited Liability Company (S.L.) over a branch.

Why Choose a Subsidiary?

Simplified Incorporation: The process is faster and requires less documentation from the foreign jurisdiction.

Flexible Ownership: You have the strategic choice to appoint your foreign company as the sole shareholder or have the individual shareholders of the parent company hold the Spanish shares.

Fiscal Independence: A subsidiary operates with its own accounting and tax identity. This isolation simplifies VAT filings, Corporate Income Tax, and annual audits, ensuring that Spanish fiscal deadlines do not interfere with your home country’s reporting.

Limited Liability: By creating a separate legal entity, you protect the assets of the parent company from liabilities incurred by the Spanish operation.

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