--- title: Spain Company & ETVE Formation | LegalKap description: Establish a Spanish holding company or ETVE with full legal support. EU market access, tax treaty benefits, and corporate structuring for global investors. --- × LK ### Download Your Premium Guide Complete the form to receive your guide immediately. First Name \* Last Name \* Email \* Download Now Your information is treated with strict professional confidentiality. By submitting, you agree to receive communications from LegalKap. 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Spain & ETVE Structuring ### When a Spanish Holding Vehicle May Be Considered Spain's ETVE regime (Entidad de Tenencia de Valores Extranjeros) exempts qualifying dividends and capital gains from foreign subsidiaries, making Spanish holding companies an attractive platform for international groups — particularly those with Latin American operations. Combined with EU directive access and 90+ double tax agreements, Spain offers a compelling onshore holding jurisdiction.   ### Services Included   1 #### Structure suitability review Analysis of whether an S.L. or S.A. with ETVE election is appropriate given the group's holding structure, treaty needs, and EU directive access. 2 #### Spanish entity incorporation Formation before a Spanish notary, Commercial Registry filing, and coordination of share capital, articles, and initial appointments. 3 #### ETVE election and tax setup Communication of the ETVE election to the tax authorities, CIT registration, and structuring to meet the participation exemption conditions. 4 #### Substance establishment Coordination of office space, qualified personnel, and local decision-making protocols to support the ETVE position. 5 #### Transfer pricing coordination Documentation support for intragroup transactions, Model 232 reporting, and arm's-length pricing analysis. 6 #### Ongoing compliance management Annual CIT filing, ETVE-specific disclosures, transfer pricing documentation maintenance, and holding-period monitoring.   ### Download Your Free Guide A comprehensive guide to the Spanish ETVE holding regime. DOWNLOAD GUIDE   ### Why LegalKap   LegalKap combines deep knowledge of Spanish corporate and tax law with cross-border structuring expertise focused on Latin American investment flows. We coordinate the ETVE election, substance arrangements, and treaty analysis as a unified engagement designed to withstand scrutiny from Spanish and foreign tax authorities.   ### Frequently Asked Questions   #### What are the conditions for the ETVE participation exemption? The exemption generally requires at least 5% ownership (or EUR 20M value), a one-year holding period, and that the subsidiary is subject to a tax similar to Spanish CIT (at least 10% nominal rate). #### Why is Spain attractive for LATAM holding structures? Spain has favorable double tax treaties with most Latin American countries, offering reduced withholding rates on dividends, interest, and royalties — combined with EU Parent-Subsidiary Directive access for European flows. #### What substance is required to sustain ETVE benefits? Spanish tax authorities expect real decision-making, qualified staff, and physical office space in Spain. The level of substance should be proportionate to the activities and income flows. #### Can non-EU shareholders benefit from the ETVE regime? Yes. Non-resident shareholders can receive exempt dividends from ETVE-sourced foreign income, though the specific treaty and domestic law interaction must be analyzed for each shareholder jurisdiction. ### Position your holding structure within the EU treaty network. Discuss whether a Spanish ETVE holding company is appropriate for your international group structuring. 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USA Phones [+1 (302) 544-4267](https://legalkap.com/contact-us?hsLang=en) [+1 (302) 544-5034](https://legalkap.com/contact-us?hsLang=en) WhatsApp [+ 56 9 92196367](https://legalkap.com/contact-us?hsLang=en) Legal Privacy Policy [![LegalKap Advisors - Tax & Legal Advisory](https://legalkap.com/hs-fs/hubfs/legalkap-logo-transparent-retina.png?width=1600&height=780&name=legalkap-logo-transparent-retina.png "LegalKap Advisors - Tax & Legal Advisory")](https://legalkap.com?hsLang=en) ```json { "@context" : "https://schema.org", "@type" : "LegalService", "alternateName" : "LegalKapital LLC", "areaServed" : [ { "@type" : "Country", "name" : "United States" }, { "@type" : "Country", "name" : "Chile" }, { "@type" : "Country", "name" : "Mexico" }, { "@type" : "Country", "name" : "Colombia" }, { "@type" : "Country", "name" : "Panama" }, { "@type" : "Country", "name" : "Costa Rica" }, { "@type" : "Country", "name" : "Cayman Islands" }, { "@type" : "Country", "name" : "British Virgin Islands" }, { "@type" : "Country", "name" : "Spain" }, { "@type" : "Country", "name" : "Canada" } ], "contactPoint" : { "@type" : "ContactPoint", "availableLanguage" : [ "English", "Spanish" ], "contactType" : "customer service" }, "description" : "International tax structuring, wealth governance, trust planning, and corporate formation for HNI, UHNI, and Family Offices across Latin America, the US, and global jurisdictions.", "foundingDate" : "2023", "knowsLanguage" : [ "en", "es" ], "logo" : "https://legalkap.com/hubfs/LegalKap-Logo.png", "name" : "LegalKap", "priceRange" : "$$$$", "sameAs" : [ "https://www.linkedin.com/company/legalkap" ], "serviceType" : [ "International Tax Structuring", "Wealth Governance", "Trust Planning", "Corporate Formation", "Cross-Border Real Estate Advisory", "General Counsel as a Service", "CPA & International Accounting" ], "url" : "https://legalkap.com" } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "An ETVE is a Spanish holding-company regime that may offer favourable treatment for qualifying foreign-source dividends and capital gains under certain conditions. 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Account opening is ultimately decided by each bank under its own requirements, so it cannot be guaranteed." }, "name" : "Does LegalKap open the bank account for a Spanish company?" } ] } ``` ```json { "@context" : "https://schema.org", "@type" : "Service", "areaServed" : "Spain", "description" : "Formation of Spanish companies and ETVE holding structures for non-residents and international clients, integrated with cross-border tax analysis, banking introductions and ongoing compliance.", "provider" : { "@type" : "LegalService", "name" : "LegalKap", "url" : "https://legalkap.com/en" }, "serviceType" : "Spain Company and ETVE Formation" } ```