Why Set Up a Foundation in Spain?
Foundations in Spain (fundaciones) are nonprofit legal entities established to serve the public interest through educational, cultural, social, environmental, or philanthropic initiatives.
✅ Ideal for:
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Philanthropists and family offices
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Corporate social responsibility (CSR) initiatives
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NGOs expanding into the EU
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Donors seeking tax-efficient giving
At Borderless Lawyers, we provide legal support to help international clients create and register Spanish foundations that are compliant, tax-efficient, and impactful.
🧾 Legal Framework for Foundations in Spain
Spanish foundations are governed by:
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Law 50/2002 on Foundations
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Autonomous regional laws (e.g., Catalonia, Madrid)
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Tax Law 49/2002 (for nonprofit tax regime)
📌 The foundation must pursue general interest purposes such as education, science, arts, environment, or humanitarian goals.
🛠️ Steps to Create a Foundation in Spain
1. 📝 Define the Mission & Purpose
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Must benefit the public or a specific community
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Cannot be created for private or profit-making purposes
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Clearly outlined in the Articles of Incorporation
🔍 We help tailor your mission statement to ensure legal compliance.
2. 💶 Provide Initial Endowment
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Minimum capital: €30,000 (can be in cash or assets)
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Must be sufficient to carry out the foundation’s goals
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Proof of deposit required for registration
📑 Founders can contribute cash, property, or other non-cash assets.
3. 🏛 Draft the Foundation Charter
Must include:
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Founders’ identity
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Name and registered office
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Purpose and activities
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Governing body (board of trustees)
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Asset management rules
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Dissolution clauses
✅ Our legal team drafts bilingual (Spanish-English) charters aligned with national and regional laws.
4. 📁 Register the Foundation
Submit documentation to the National or Regional Foundations Registry:
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Notarized public deed of incorporation
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Bank certificate of endowment
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Tax identification (NIF) application
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Identification of trustees
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Regulatory compliance documents
🕐 Registration typically takes 2 to 4 months, depending on the region.
5. 🧑⚖️ Appoint the Board of Trustees
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Minimum of 3 individuals or legal persons
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Trustees manage strategy, funding, compliance, and reporting
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Board meetings and resolutions must be recorded annually
⚠️ Trustees are personally liable for financial misconduct or non-compliance.
6. 📊 Tax Registration & Exemptions
To benefit from Spain’s nonprofit tax regime:
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Apply for Law 49/2002 tax status
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Subject to 10% corporate tax on economic activities
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Eligible for VAT exemption and donor tax deductions
💡 Donors (individuals or corporations) can receive up to 80% in tax relief.
💬 Real-World Example
Case: A U.S. family foundation aimed to fund educational scholarships across Spain and Latin America. We:
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Drafted the foundation charter in English and Spanish
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Registered the foundation with the National Registry
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Advised on tax exemption under Law 49/2002
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Ensured cross-border donation compatibility
🎯 The foundation is now fully operational, with approved tax-deductible status and EU funding eligibility.
🧷 Ongoing Compliance
Spanish foundations must:
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Submit annual financial reports
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Maintain accounting and activity logs
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Notify the registry of governance changes
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Conduct activities consistent with their purpose
📘 We offer full post-incorporation legal and administrative support.
🌍 Why Work With Borderless Lawyers?
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✅ Nonprofit & foundation law specialists
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✅ Support for international founders
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✅ Multilingual legal documentation
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✅ Tax and registry compliance
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✅ Cross-border donation structure