How to Purchase Shares in a Spanish CompanyUpdated on Wednesday 03rd August 2016
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Foreign investors who are interested in accessing the business market in Spain can opt to purchase shares in a Spanish company, following the rules and regulations imposed by the local legislation. Foreign businessmen can purchase shares, but it is important to receive the assistance of a local lawyer, familiar with the applicable regulations. When buying shares, it is advisable to verify the legal and financial statute of the company. Our team of Spanish lawyers can offer assistance for the procedure referring to the purchase of shares in Spanish companies.
The transfer tax in Spain
The acquisitions of shares of a Spanish company implies that there is a transfer between two parties – the seller and the buyer. In such cases, the Spanish legislation prescribes a transfer tax, applicable when the ownership structure of an entity changes.
As a general rule, the Spanish legislation states that the tax is not applicable in the case of the share transfer, only in certain conditions. Under the Article 108.2 on the Spanish legislation referring to the market exchange, the investors (future shareholders) who will purchase more than 50% of the assets of a Spanish property will be imposed with a 7% transfer tax. In such situation, the investor will be considered the main shareholder, with full control over the company; our team of Spanish attorneys can offer more details on the process of purchasing shares.
Selling shares to another shareholder in a Spanish company
Shareholders who want to sell their shares in a Spanish company can also address this issue to another shareholder, who is entitled by the applicable legislation to this purchase.
Under the regulations of the Law 1/2010 (Article 107), Spanish shareholders can sell their shares to another business partner, associated in the company, without having to pay a transfer tax.
In such situations, the shareholder is not required to request the approval of other shareholders.
Businessmen interested in receiving more details on how to purchase shares in a Spanish company can address to our Spanish law firm for legal assistance or legal representation.