Prikhodko&Partners
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International corporate law
Business Setup and Support in Spain LOAN FOR BUSINESS IN SPAIN

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

LOAN FOR BUSINESS IN SPAIN

Loans for non-residents are granted to foreigners who are not tax residents and want to conduct their business in the country.

According to the legal regulations of the European Union, both residents and non-residents of Spain should have the same rights to obtain a loan, but in practice, you may encounter some obstacles. If you need a bank loan, the first condition is a thorough and realistic business plan, which should include a description of how you plan to repay the loan.

The business plan will be a strong argument for making a positive credit decision. It will help convince the bank that loan payments are part of your plans, and you know in advance where you will get the funds from.

It should be taken into account that Spanish financing organizations traditionally approach lending to foreigners with some prejudice. This is expressed in the request for additional documents and a more thorough check of the data, especially if the amount requested is large. Each bank is free to implement its own criteria, but the standard requirements for foreign nationals wishing to take out a loan in the Kingdom are as follows:

Have a valid foreign passport and NIE – the personal identification number of a foreigner, which allows you to carry out monetary or economic transactions in the country.
Provide a package of documents confirming solvency: income certificates, company registration, statements from bank accounts, credit history, etc. – all papers must be translated into Spanish and notarized.

Lending interest rates

The interest varies depending on the bank’s credit policy, the amount, and the repayment terms. In June 2020, the average interest rate on a Spanish loan was 1.64%. The maximum indicator reached 6.29%, and the minimum – was 0.71%.

Separately, it is worth mentioning that representatives of small businesses (PYME), even non-residents, can count on receiving preferential credit and services offered by the brainchild of the Ministry of Economy and Finance (Instituto de Crédito). This structure can give you a loan of 60% of the amount of investment you need for your business. As an option, you can turn to the Micro-Credit Facility, a microfinance organization that, in the absence of other loans or grants for starting a business, can provide you with an amount of 95%, but not more than 25 thousand euros.

In order to get financing or a loan in Spain, it is very important to have a reliable partner who can select funds, prepare applications for financing, substantiate estimates: help work out effective business models, etc.

Our services are priced from 200 euros per consultation and subsequent support.

Can a non-resident register a company in Spain?

Yes. A foreigner may be a founder and administrator of a Spanish SL. Identification documents must be prepared, the required Spanish tax or personal identification numbers obtained, and notarial, corporate and banking checks completed.

Can an SL be opened remotely?

In many cases, the main part of the procedure can be completed through a representative acting under a notarised power of attorney. However, the procedure for obtaining an NIE, executing the power of attorney, bank identification and signing documents depends on citizenship, structure and the requirements of the particular institutions.

Is an NIE mandatory?

A foreign individual who participates in notarial incorporation, becomes a shareholder or administrator of the company usually requires an NIE. For foreign legal entities, a Spanish tax identification number is obtained and a separate package of corporate documents is prepared.

What is the current minimum share capital for an LLC (SL)?

The “Crea y Crece” law allows a company (SL) to be registered with share capital from €1. However, the company will be required to allocate 20% of its annual profit to the legal reserve until the combined amount of share capital and reserve reaches €3,000.

Can every startup pay 15% for four years?

No. The extended regime for empresas emergentes requires ENISA certification and compliance with requirements concerning innovation, scalability, age, turnover, structure and presence in Spain. Without such certification, the general rules for newly established companies apply.

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