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Doing business in Spain without boarding a plane: a legal roadmap for UK companies (and for Spanish companies in the UK)
Trade between the UK and Spain reached £68.5 billion in the year to March 2026, according to the UK Department for Business and Trade. Spain is the UK's seventh-largest trading partner. Most of that business is done by companies with no office on the other side.
That works well until a contract, an employee or a bank asks a question nobody planned for. This article sets out the questions to settle first. We covered them in detail in our webinar with the British Chamber of Commerce in Spain.
Three ways into Spain, none of which needs a flight
What you need: A written contract under a chosen law, with clear rules on exclusivity and termination
What you need: Registration in Spain, a local representative, Spanish tax number
What you need: Minimum capital of €1, tax numbers for directors and shareholders, notarial deed
All three can be completed from the UK. A power of attorney signed before a UK notary, with apostille and sworn translation, lets your Spanish lawyer sign at the notary for you.
Agency contracts deserve special care. Spanish law gives commercial agents a right to compensation on termination that cannot be excluded by contract.
A UK company with a sales manager working from a flat in Valencia may already have a taxable presence in Spain. The term is permanent establishment.
In November 2025 the OECD published new guidance on remote work. It sets two tests:
- Time. A home used for less than 50% of the person's working time over twelve months is generally not a place of business.
- Commercial reason. Above 50%, a permanent establishment arises if the company has a business reason for the person being there, such as serving local customers.
The guidance is not law, and each tax treaty is read on its own terms. Spanish tax authorities and courts have long taken a broad view of what counts as a permanent establishment. A staff member who negotiates contracts in Spain is a risk even below the threshold.
Separately from tax, an employee who works in Spain is usually covered by Spanish employment law and social security from day one.
In practice the bank account delays more market entries than the notary. Spanish banks ask a foreign-owned company for:
- Spanish tax numbers for the company and its directors
- Corporate documents from Companies House, with apostille and sworn translation
- A notarial statement of who the beneficial owners are
- Evidence of the source of funds
Start the bank file at the same time as the company formation, not after it.
Every director and person with significant control of a UK company must now verify their identity with Companies House. The transition period for existing directors ends on 18 November 2026. The rule applies wherever the director lives.
A Spanish owner who has not verified in time cannot act as director or file for the company. For many companies the real deadline is earlier, with the next confirmation statement.
The UK–EU agreement on Gibraltar has applied provisionally since 15 July 2026. It removes checks on people and goods at the land border. It does not give Gibraltar companies free access to the Spanish services market.
Checklist before you start
- Decide the route: contract, branch or subsidiary.
- Map where your people actually work, and for what share of their time.
- Sign the power of attorney and apply for tax numbers.
- Open the bank file in parallel.
- Review agency, distribution and employment contracts under Spanish law.
If you plan holiday lets, check the community statutes first. Since April 2025 new tourist rentals need the express approval of the owners' community.
Ahuir Law advises UK companies entering Spain and Spanish companies with UK business
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