What Is a Holding Company in Spain?
A holding company (sociedad holding) in Spain is a legal entity created primarily to own shares in other companies, manage assets, and coordinate group strategies. It typically does not conduct commercial operations itself, but controls other subsidiaries or investments.
👥 Popular among multinational groups, real estate investors, and family offices.
🏛️ Legal Structures for Spanish Holding Companies
Most holding companies are established as:
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Sociedad Limitada (SL) – Limited liability, flexible structure
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Sociedad Anónima (SA) – For larger holdings, with higher capital requirements
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European Holding Company (SE) – For cross-border EU operations
📌 SL is the most common structure due to its simplicity and minimal share capital (€3,000).
📊 Tax Benefits of a Spanish Holding Company
Spain offers attractive tax advantages for qualifying holding companies under the ETVE regime (Entidad de Tenencia de Valores Extranjeros).
💰 ETVE Tax Regime Highlights:
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Exemption on dividends received from foreign subsidiaries
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Capital gains exemption on share sales
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No withholding tax on dividends paid to non-residents (subject to conditions)
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Access to Spain’s wide Double Tax Treaty (DTT) network
✅ ETVE companies must:
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Have a physical presence in Spain
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Maintain accounting records
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Actively manage subsidiary shares
📂 Incorporation Requirements
To set up a holding company in Spain, you must:
✅ Key Steps:
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Choose company type (usually SL or SA)
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Obtain NIEs for shareholders and directors
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Draft and notarize the Articles of Association
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Register with the Mercantile Registry
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Get a tax ID (NIF) and register for tax purposes
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Open a corporate bank account
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Apply for ETVE status, if applicable
⚖️ Borderless Lawyers handles all company formation procedures, filings, and compliance steps.
📉 Accounting, Reporting & Compliance
Holding companies must meet all standard obligations:
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Submit annual accounts and corporate tax returns
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File UBO (Ultimate Beneficial Owner) declarations
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Keep detailed shareholding records
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Comply with transfer pricing rules if transacting with subsidiaries
📌 SA companies may face additional audit requirements.
🌐 International Asset Management & Structuring
Spain is often chosen as a gateway jurisdiction for holding European or Latin American investments.
Strategic Advantages:
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Member of the EU and Eurozone
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Strong IP and investor protections
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Access to European courts and enforcement mechanisms
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No currency restrictions
🌍 Ideal for holding real estate, tech IP, and equity in international operations.
💬 Real-World Example
Client: A Singapore-based family office wanted to control investments across Europe.
Solution: We established an SL in Spain under the ETVE regime.
Outcome: Tax-efficient dividend flow from subsidiaries in France, Italy, and Germany with no double taxation.
👨⚖️ How Borderless Lawyers Can Help
We offer:
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✅ End-to-end company formation
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✅ ETVE tax structuring
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✅ Corporate compliance & reporting
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✅ Legal advice on asset management
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✅ UBO and transfer pricing guidance
📞 Full bilingual support | 🎯 International client focus | 📑 Tax-smart structuring
🚀 Set Up Your Spanish Holding Company with Confidence
Whether you’re managing group companies, investing in real estate, or centralizing control in Europe, Borderless Lawyers can help you set up and run a compliant, efficient holding company in Spain.