How to Sell Shares in a Spanish CompanyUpdated on Wednesday 10th August 2016
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The Spanish legislation provides the possibility to sell shares in a Spanish company, which can be sold to various entities, such as natural persons, local or foreign legal entities. The regulations for the selling of shares depend by the type of entity to which they are sold. Our team of Spanish lawyers can offer assistance to those who are interested in selling the shares of companies incorporated in Spain.
Selling shares in Spain
In Spain, a transaction can be performed in two ways. One refers to the purchase process of company’s assets and the other one to the selling of its shares. The sale involves the payment of a capital gain tax, applicable to the selling company. It is important to know that the purchaser becomes responsible in the situation in which the assets are sold with liabilities.
As a general rule, the purchaser should know that the seller will present the company’s book of accounts and other relevant documents for the due diligence procedures, which are recommended in this case.
The due diligence is performed at the initiative of the purchaser and it is advisable to receive the assistance of our team of Spanish attorneys, who are familiar with the requirements of the procedure.
Foreign company buying shares in a Spanish legal entity
Foreign businesses are allowed to purchase shares available for sale in a Spanish company. In order to start the procedure, the foreign entity is required to obtain a tax identification number, issued by the local authorities.
A legal representative of the foreign company must sign the tax identification number application. It is important to know that, if the person does not have a Spanish residency permit, he or she should obtain a foreign identification number.
The representatives of the two companies will perform the sale under the assistance of a public notary in Spain.
Businessmen interested in receiving more details on how to sell shares of a Spanish company can address to our law firm in Spain for legal representation.