Foreign businessmen who want to create a foundation in Spain need to get acquainted with the specific legislation applicable in this area. The local government adopted new regulations on foundations in Spain, including the possibility to dissolve an inactive foundation or a foundation that does not fulfill its purposes. Our attorneys in Spain can give you further details about the legal obligations to be met in order to create a foundation.
How to create a foundation in Spain
Any person interested in creating a foundation in Spain must submit a report about the suitability of the purposes and activities of the foundation with the Spanish Protectorate. This request is usually resolved by the authorities within three months from its submission. Once a favorable answer is given by the Protectorate, the interested party can set up the foundation with a notary. The notary is the institution responsible for creating the foundation in Spain and registering it into the Foundation Registry, an organization within the Ministry of Justice.
The following video offers a short presentation on the registration of a Spanish foundation:
The Foundation Registry contains relevant information about the acts of any operating foundation on the Spanish territory. This institution allows a foundation in Spain to fulfill its publicity and transparency obligations. Furthermore, it controls the use of grants and tax benefits that a foundation in Spain has obtained. Several requirements must be met in order to create a foundation in Spain:
• Draw the list of members (minimum two) and the board of directors;
• Write the articles of association;
• Complete the forms of inception (depending on the foundation main purposes);
• Pay the registration fee.
Our law firm in Spain can assist you with the entire procedure of creating a foundation and give you more details about the legislation applicable to foundations in Spain.
Basic obligations for foundations in Spain
In order to legally run a foundation in Spain, there are obligations to consider. First of all, a foundation is required to have a minute book (Libro de Actas) where all votes, decisions and activities during meetings are recorded.
Another obligation imposed on foundations in Spain is to have a membership book (Libro de Socios), where all current members are recorded. An accounting book (Libro de Contabilidad) is also needed for legally managing a foundation in Spain. In some circumstances, these books have to be legalized at the Mercantile Registry or at a public notary. All donations received by a foundation from private individuals or Spanish companies must be declared with the Treasury and no additional payment is necessary.
Don’t hesitate to contact our Spanish lawyers if you need detailed information about the legal obligations of foundations in Spain.